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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% - 6%

Hawaii

No supplemental rate

Idaho

7.4%

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

5.9%

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

5.599%

North Dakota

1.84%

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

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