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.
Reminder
When you process a bonus payroll Gusto will automatically withhold federal income taxes at the supplemental withholding rate of 22%. The rate changes for bonuses over $1 million dollars.
Each state has its own rate for supplemental withholding as well, which can be found below.
It's calculated using the following information:
Actual rates differ for each state. Gusto calculates your employees' state income tax using the tax withholding information entered into Gusto and the state's current tax tables.
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 | 9.62% |
| North Carolina | 5.35% |
| North Dakota | 1.84% |
| Ohio | 3.5% |
| Oklahoma | 5% |
| Oregon | 8% |
| 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 |