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Supplemental wage withholding rates
When you process a bonus payroll Gusto will automatically withhold 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, 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
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
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