PTO Payout Calculator
Estimate gross payout, federal tax withholding (22%), and net take-home for unused PTO when you leave your job. State payout rules appear when you select your state.
Input Your Details
California treats earned vacation/PTO as wages. All accrued, unused vacation must be paid out upon termination regardless of separation type.
Statute: Cal. Labor Code §227.3
Your Results
80 hrs × $25.00/hr = $2,000.00
22% × $2,000.00 = $440.00
$2,000.00 − $440.00 = $1,560.00
How This Payout Calculator Works
- Select your state — a short payout rule summary appears if we have one on file.
- Enter unused PTO hours and your hourly rate (or annual salary; we convert salary using 2,080 hours/year).
- View gross payout (hours × rate), estimated federal withholding, and estimated net.
For mandatory vs. policy-based rules and a full tax walkthrough, see PTO Payout Explained or How we calculate.
State PTO Payout Laws
Whether unused PTO must be paid at separation depends on state law and employer policy — not every state requires cashing out vacation. Your state's category (required, policy-based, or unclear) shows in the directory on PTO payout rules by state.
Estimates only — not legal, tax, or financial advice. Overtime and PTO rules vary by state, employer policy, and individual circumstances. Results are for informational purposes. Consult a qualified professional or your state labor agency for definitive guidance. See our Terms of Service.
Last updated: June 13, 2026 · Reviewed by SmartOvertime Editorial · How we calculate
PTO Payout FAQ
Gross payout = unused PTO hours × your hourly rate. This calculator then subtracts an estimated 22% federal supplemental withholding to show estimated net. That net figure does not include FICA, state income tax, or other payroll deductions. Whether you are legally owed a payout depends on your state rule and employer policy — the calculator shows both the math and your state's requirement status.
Many employers withhold federal income tax on PTO payout at a flat 22% rate — the IRS optional supplemental wage rate (see Publication 15, Section 7). That is a withholding estimate, not your final tax rate. This calculator applies 22% to show estimated net after federal withholding; FICA and state income tax are not included.
In states with mandatory payout (e.g., California, Massachusetts), employers that offer paid vacation generally must pay earned, unused time at separation. In Illinois, payout applies when your employer's policy or contract provides paid vacation — there is no standalone entitlement if no vacation benefit exists. In policy-based states, payout depends on your employer's written policy. In not-required states, payout is at the employer's discretion unless a contract says otherwise.
A common method is to divide your annual salary by 2,080 (40 hours × 52 weeks). Enter your annual salary in the calculator and it will compute the equivalent hourly rate for the payout estimate.
Yes. Enter your unused PTO hours and pay rate to see gross payout, an estimated 22% federal supplemental withholding (IRS optional flat rate for supplemental wages), and estimated net after that withholding only. State income tax, FICA, and other payroll deductions are not modeled — use the gross figure as a planning starting point and ask HR for a final pay stub.