Supplemental wage withholding rates

When you process a bonus payroll Gusto will automatically withhold income taxes at the supplemental withholding rate. The supplemental withholding rate for Federal withholding is 25% for wages up to and including $1 million. The rate is 39.6% for supplemental wages over $1 million. Each state has its own rate for supplemental withholding, which can be found below. 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).

Alabama

5%

Alaska

No income tax

Arizona

0 - 5.1%

Arkansas

6.9%

California

6.6% - 10.23%

Colorado

4.63%

Connecticut

0%

Delaware

0%

District of Columbia

No supplemental rate

Florida

No income tax

Georgia

2% - 6%

Hawaii

0%

Idaho

7.4%

Illinois

5%

Indiana

3.4%

Iowa

6%

Kansas

4.5%

Kentucky

0%

Louisiana

0% 

Maine

5%

Maryland

5.75%

Massachusetts

0% 

Michigan

4.25% 

Minnesota

6.25%

Mississippi

0%

Missouri

6%

Montana

6%

Nebraska

5% 

Nevada

No income tax

New Hampshire

No income tax

New Jersey

0%

New Mexico

4.9%

New York

9.62%

North Carolina

5.85%

North Dakota

3.5%

Ohio

3.5%

Oklahoma

5% 

Oregon

9%

Pennsylvania

3.07%

Rhode Island

5.99% 

South Carolina

7%

South Dakota

No income tax 

Tennessee

No income tax

Texas

No income tax

Utah

0%

Vermont

24%

Virginia

5.75%

Washington

No income tax

West Virginia

3% - 6.5%

Wisconsin

4% - 7.65%

Wyoming

No income tax 

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