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 |