State income tax (SIT) is money taken from each employee’s paycheck. It’s sent to the state based on where the employee works—and sometimes where they live. Other things like how often they get paid or what benefits they have also affect the amount.
Gusto wiitholds and pays state income tax for customers.
Reminders about bonus payments—they're sometimes taxed higher
When a bonus payroll is submitted:
Use the dropdowns below to learn more. To search for words on this page, press CMD + F (Mac) or CTRL + F (Windows).
If you want to know how state income tax was calculated by Gusto, use the state’s withholding guide from the table below to replicate the full calculation.
Some states use a flat rate for calculations, others use more complex formulas:
Gusto uses the Percentage Method formula to calculate state income taxes unless only a flat rate applies.
We follow state rules using:
Gusto uses the Percentage Method formula to calculate state income taxes (SIT) unless only a flat rate applies.
Last updated May 6, 2025
| State withholding guide | Method used to calculate SIT (Formula, or Flat) | Supplemental rate for bonus payments (If available) |
|---|---|---|
| Formula | 5% | |
| Alaska | No state income tax | No state income tax |
| Flat | No supplemental rate | |
| Formula | 3.9% | |
| Formula | 6.6–10.23% | |
| Flat | No supplemental rate | |
| Formula | No supplemental rate | |
| Formula | No supplemental rate | |
| Formula | No supplemental rate | |
| Florida | No state income tax | No state income tax |
| Flat | No supplemental rate | |
| Formula | No supplemental rate | |
| Flat | 5.695% | |
| Flat | No supplemental rate | |
| Flat | 3% | |
| Formula | 6% | |
| Formula | 5% | |
| Flat | No supplemental rate | |
| Flat | No supplemental rate | |
| Formula | 5% | |
| Formula | No supplemental rate | |
| Flat | No supplemental rate | |
| Flat | No supplemental rate | |
| Formula | 6.25% | |
| Flat | No supplemental rate | |
| Formula | 4.7% | |
| Formula | 5% | |
| Formula | 5% | |
| Nevada | No state income tax | No state income tax |
| New Hampshire | No state income tax | No state income tax |
| Formula | No supplemental rate | |
| Formula | 5.9% | |
| Formula | 11.7% | |
| Flat | 4.35% | |
| Formula | 1.5% | |
| Formula | 3.5% | |
| Formula | 4.75% | |
| Formula | 8% | |
| Flat | No supplemental rate | |
| Formula | 5.99% | |
| Formula | 6.2% | |
| South Dakota | No state income tax | No state income tax |
| Tennessee | No state income tax | No state income tax |
| Texas | No state income tax | No state income tax |
| Flat | No supplemental rate | |
| - |
| |
| - | 5.75% | |
| Washington | No state income tax | No state income tax |
| Formula | 2.2–4.82% | |
| Formula | Depends on an employee's gross salary—the supplemental percentage will be one of the below:
| |
| Wyoming | No state income tax | No state income tax |