Find out what your unused vacation or PTO is worth in cash. Convert your salary to an hourly rate, multiply by the unused hours or days, and see the estimated take-home after the 22% federal supplemental rate, FICA and state tax.
Last updated:
Pay
Paid by
$
h
Hourly rate = salary ÷ (52 × hours per week).
$
Unused PTO
Balance is in
h
hours
Maximum hours your policy pays out. Leave blank for no cap.
Withholding (US, 2026)
%
Flat 22% optional rate for supplemental wages; 37% on supplemental wages over $1 million in a year.
%
Your state's supplemental or estimated rate; 0 in states without income tax.
%
$
Used for the Social Security wage base and the extra 0.9% Medicare over $200,000.
$
2026: $184,500 (2025: $176,100).
Enter your values to see the result.
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How to use the PTO Payout Calculator
Choose salary or hourly and enter your pay (and weekly hours if salaried).
Enter your unused PTO in hours or days, plus a payout cap if your policy has one.
Check the withholding rates: federal supplemental, state and local.
Enter wages paid so far this year so Social Security and Medicare limits are applied.
Press Calculate PTO payout to see the gross payout, withholding and take-home.
Payout hours = unused days × hours per day (or unused hours), limited by any cap
Gross payout = payout hours × hourly rate
Take-home = gross − federal − Social Security − Medicare − state − local
Example: a $62,000 salary on a 40-hour week is $62,000 ÷ 2,080 = $29.81 an hour. Seven unused days of 8 hours (56 hours) pay $1,669.23 gross. Withholding 22% federal ($367.23), 6.2% Social Security ($103.49), 1.45% Medicare ($24.20) and 5% state ($83.46) leaves about $1,090.84.
Federal withholding on supplemental wages (2026)
Item
Rate
Notes
Federal income tax, flat method
22%
Optional flat rate for supplemental wages up to $1 million a year
Federal income tax over $1 million
37%
Mandatory on supplemental wages above $1 million
Social Security
6.2%
Up to the wage base: $184,500 in 2026
Medicare
1.45%
No limit; extra 0.9% on wages over $200,000
Rates reflect IRS Publication 15 rules for 2026. Some employers use the aggregate method instead, which can withhold a different amount. State rules vary.
Tips before you leave a job
Read the written PTO policy for payout, caps and any notice requirement.
Check your last pay stub for the exact balance in hours.
Consider using PTO before your last day if your employer will not pay it out.
Frequently asked questions
How is a PTO payout calculated?
Multiply the unused PTO hours by your regular hourly rate. If you are salaried, your hourly rate is your annual salary ÷ (52 × hours per week): $62,000 ÷ 2,080 = $29.81 an hour, so 56 unused hours pay $1,669.23 before tax.
How is PTO payout taxed?
The IRS treats a vacation payout as supplemental wages. Employers may withhold federal income tax at a flat 22% (37% on supplemental wages above $1 million in a year) or add it to a regular paycheck. Social Security (6.2% up to the wage base) and Medicare (1.45%) also apply, plus state and local tax.
Is the 22% withholding my final tax?
No. Withholding is a prepayment. The payout is added to your income for the year, and your actual tax is settled on your tax return, so you may get some back or owe more depending on your bracket.
Do employers have to pay out unused vacation?
There is no federal law requiring it. A few states, including California, Colorado, Illinois and Massachusetts, generally treat earned vacation as wages that must be paid at separation, while most states leave it to the employer's written policy. Check your state labor department and your handbook.
Is sick leave paid out too?
Usually not. Most policies and state laws treat sick leave separately and do not require payout, but a combined PTO bank is often treated like vacation. Your policy decides which balance is payable.
Can my employer cap the payout?
Many policies cap how much PTO can be carried over or paid out, where state law allows. Enter the cap in hours to see the capped payout and how many hours are not paid.
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