Tax year 2026 · updated October 2, 2026 · engine estimates

Does PTO get taxed when paid out? (2026)

Sample take-home: $60,859.58 a year · $5,071.63 a month · $2,340.75 biweekly.

Tax year 2026, California, single, standard deduction, no 401(k).

Does PTO get taxed when paid out? Yes — unused paid time off cashed out is usually treated as supplemental wages, not a second salary. Searchers also ask “does PTO payout get taxed differently,” “pto payout taxes,” and “vacation payout taxes.” This page preloads an $80,000 salary plus a $5,000 PTO payout so you can see regular take-home plus the supplemental sketch. It is not a second copy of the national bonus calculator or the signing-bonus page.

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More options401(k), health, bonus

Taxed as supplemental wages (22% federal flat, plus FICA and a simplified state line).

Estimated take-home · CA · Annual

$60,859.58

per year

Monthly take-home$5,071.63
Biweekly take-home$2,340.75
Effective tax23.9%
See breakdown
Federal $9,870.00Social Security $4,960.00Medicare $1,160.00State $3,210.42Other (SDI / city / WA Cares) $1,040.00
ItemAnnual
Gross$80,000.00
Federal income tax$9,870.00
Social Security$4,960.00
Medicare$1,160.00
State income tax$3,210.42
CA SDI$1,040.00
Total tax$19,140.42
Net / take-home$60,859.58

What this includes. Included: 2026 federal brackets + standard deduction (Rev. Proc. 2025-32), Social Security 6.2% up to $184,500, Medicare 1.45% (plus 0.9% additional Medicare over the threshold), and the state income-tax model (including states with no state income tax); CA SDI, WA Cares, and optional NYC when those lines apply. Not included: other local/city taxes, Child Tax Credit, EITC, itemized deductions, 401(k)/HSA/FSA unless typed in, garnishments. See methodology.

Estimate only — not tax advice or full tax software. 2026 federal brackets and a simplified state model. Locals other than optional NYC, CA SDI, and WA Cares are omitted. Confirm with your pay stub or a tax professional.

The calculator sample starts as a single filer. Change filing status above to see married or head-of-household take-home on this same wage. Numbers update as you type.

Paycheck breakdown

Period Gross Taxes Take-Home
Annual $80,000.00 $19,140.42 $60,859.58
Monthly $6,666.67 $1,595.03 $5,071.63
Biweekly $3,076.92 $736.17 $2,340.75
Weekly $1,538.46 $368.09 $1,170.38
Hourly $38.46 $9.20 $29.26

Tax breakdown

Line Amount
Federal $8,770.00
State $3,210.42
Social Security $4,960.00
Medicare $1,160.00
CA SDI $1,040.00
Total tax $19,140.42
Effective rate 23.9%
Net % of gross 76.1%

Employers often withhold federal tax on a vacation or PTO cash-out with the IRS optional flat 22% on supplemental wages (37% above $1,000,000). Some use the aggregate method on a combined check instead. This engine shows the flat supplemental sketch for planning cash, not filing a return.

FICA still applies. Social Security stops at the $184,500 2026 wage base; Medicare does not. California adds a simplified PIT increment plus 1.3% SDI on the payout in this model. Texas zeros the state income-tax line on the same $5,000 cash-out. Searchers also type California-only PTO payout tax — switch the state rather than cloning a city URL.

Use the bonus calculator if you only care about the supplemental field, or signing bonus after taxes for a $10,000 offer sample. Reviewed October 2, 2026.

Sample estimates

Sample State tax Federal + FICA Annual take-home Monthly Biweekly
$80k CA single + $5k PTO payout $3,210.42 $14,890.00 $60,859.58 $5,071.63 $2,340.75
$80k TX single + $5k PTO payout $0.00 $14,890.00 $65,110.00 $5,425.83 $2,504.23

Engine estimates for tax year 2026 — not tax advice or a pay stub. Omits local taxes, most credits, and SDI/PFML. See methodology.

What this includes. Included: 2026 federal brackets + standard deduction (Rev. Proc. 2025-32), Social Security 6.2% up to $184,500, Medicare 1.45% (plus 0.9% additional Medicare over the threshold), and the state income-tax model (including states with no state income tax); CA SDI, WA Cares, and optional NYC when those lines apply. Not included: other local/city taxes, Child Tax Credit, EITC, itemized deductions, 401(k)/HSA/FSA unless typed in, garnishments. See methodology.

FAQ

Does PTO get taxed when paid out?

Yes. A PTO cash-out is wages. Withholding often looks higher because employers use the optional 22% supplemental rate. Your year-end return still taxes the payout as ordinary wages at your marginal rate — so it can look different on the stub than on the return.

Is vacation payout the same as a bonus?

Both are usually supplemental wages. This URL matches “PTO payout taxes” / “vacation payout taxes” with a $5,000 cash-out sample.

Does California tax a PTO cash-out?

Yes in this model: a simplified state increment plus 1.3% SDI on the payout, on top of federal supplemental withholding and FICA.