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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

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% - 6%

Hawaii

No supplemental rate

Idaho

7.4%

Illinois

4.95%

Indiana

3.23%

Iowa

Kansas

Kentucky

No supplemental rate

Louisiana

No supplemental rate

Maine

Maryland

No supplemental rate

Massachusetts

No supplemental rate

Michigan

4.25%

Minnesota

6.25%

Mississippi

No supplemental rate

Missouri

5.9%

Montana

Nebraska

Nevada

No income tax

New Hampshire

No income tax

New Jersey

No supplemental rate

New Mexico

4.9%

New York

9.62%

North Carolina

5.599%

North Dakota

1.84%

Ohio

3.5%

Oklahoma

Oregon

Pennsylvania

3.07%

Rhode Island

5.99%

South Carolina

South Dakota

No income tax

Tennessee

No income tax

Texas

No income tax

Utah

No supplemental rate

Vermont

5.28% (24% of the Federal rate)

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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Supplemental wage withholding rates