State income tax (SIT) is withheld from employee earnings each payroll (and later paid)—there are a few factors that go into the income tax calculation.
Reminders about bonuses
When you process a bonus payroll in Gusto, we'll automatically withhold federal income taxes at the supplemental withholding rate of 22%.
Each state has its own rate for supplemental withholding as well—learn more below.
We'll use a state’s tax tables (based on work and home addresses) and the state tax info entered by team members to calculate state income tax. Gusto withholds and pays the taxes for you.
Here's what the income tax calculation is based on:
Some states have a range based on the wage amount. Unless otherwise noted, these rates apply for all calculation methods (current aggregation, flat, and previous aggregation).
| State | Withholding rate |
| Alabama | 5% |
| Alaska | No income tax |
| Arizona | No supplemental rate |
| Arkansas | 6.9% |
| California | 6.6% - 10.23% |
| Colorado | 4.63% |
| Connecticut | No supplemental rate |
| Delaware | No supplemental rate |
| District of Columbia | No supplemental rate |
| Florida | No income tax |
| Georgia | 2% - 5.75% |
| Hawaii | No supplemental rate |
| Idaho | 6.925% |
| Illinois | 4.95% |
| Indiana | 3.23% |
| Iowa | 6% |
| Kansas | 5% |
| Kentucky | No supplemental rate |
| Louisiana | No supplemental rate |
| Maine | 5% |
| Maryland | No supplemental rate |
| Massachusetts | No supplemental rate |
| Michigan | 4.25% |
| Minnesota | 6.25% |
| Mississippi | No supplemental rate |
| Missouri | 5.4% |
| Montana | 6% |
| Nebraska | 5% |
| Nevada | No income tax |
| New Hampshire | No income tax |
| New Jersey | No supplemental rate |
| New Mexico | 4.9% |
| New York | 11.7% |
| North Carolina | 5.35% |
| North Dakota | 1.84% |
| Ohio | 3.5% |
| Oklahoma | 5% |
| Oregon | Varies by how much you make—review the agency's tax charts here. |
| Pennsylvania | 3.07% |
| Rhode Island | 5.99% |
| South Carolina | 7% |
| South Dakota | No income tax |
| Tennessee | No income tax |
| Texas | No income tax |
| Utah | No supplemental rate |
| Vermont | 6.6% (30% of the Federal rate on payments up to $1M, and 11.1% on payments more than $1M) |
| Virginia | 5.75% |
| Washington | No income tax |
| West Virginia | 3% - 6.5% |
| Wisconsin | 4 %, 5.84%, 6.27% or 7.65% depending on the gross salary of the employee |
| Wyoming | No income tax |