Estimate your severance package based on salary, years of service, and company policy.
0 = no minimum
0 = no cap
COBRA, relocation, etc.
Avg state rate: 0% (TX, FL, WA) to 13.3% (CA). Adjust to your state.
Enter your annual base salary and total years of service with your employer. Select the severance formula that matches your company policy — typically 1 or 2 weeks per year of service. You can also set minimum and maximum week caps, add any additional lump-sum payments (like COBRA coverage), and adjust the tax rates to see your estimated take-home amount.
Severance pay is often the most significant financial bridge between losing your job and finding a new one. Knowing exactly what you're owed — and what you'll actually take home after taxes — can make the difference between a financially stressful transition and a manageable one.
Consider a 42-year-old marketing director with 8 years at a company earning $95,000/year. Under a standard 2-weeks-per-year policy capped at 26 weeks, she'd receive $29,231 gross — but after federal and state taxes, closer to $19,500 in hand. That's roughly 5 months of reduced living expenses at $3,900/month, not the 7 months the gross figure suggests.
HR managers use severance calculators to structure packages consistently. Employees use them to verify offers before signing separation agreements. Attorneys use them as a starting point for negotiations. Whether you're being laid off, negotiating a buyout, or planning ahead, knowing your number is power.
The core formula is:
Severance Weeks = Years of Service × Weeks per Year (capped by min/max)
Gross Severance = (Annual Salary ÷ 52) × Severance Weeks + Bonus Payments
Federal income tax is estimated using 2024 marginal tax brackets for your filing status. Severance pay is treated as supplemental wages, which may be subject to a flat 22% federal withholding — this calculator uses bracket-based estimation for greater accuracy. Social Security (6.2%) and Medicare (1.45%) taxes also apply, bringing total FICA to 7.65%. State tax is applied at the rate you enter.
In the United States, there is no federal law requiring employers to offer severance pay. It's typically based on your employment contract, company policy, or a negotiated agreement. However, the WARN Act may require 60 days' notice or pay in lieu of notice for mass layoffs at companies with 100+ employees.
Severance pay is treated as ordinary income and is subject to federal income tax, state income tax, and FICA (Social Security and Medicare) taxes. Employers may withhold at a flat 22% federal rate for supplemental wages, but your actual liability depends on your total annual income. You may get a refund or owe more at tax time.
Yes, and you often should — especially if you have long tenure, a strong performance record, or other leverage. Common items to negotiate include additional weeks of pay, extended health insurance coverage, accelerated vesting of stock options, and outplacement services. You typically have 21 days to review an offer before signing.
It depends on your state. Some states will delay the start of unemployment benefits until your severance period ends, treating it as continued wages. Others allow you to collect unemployment while receiving severance. Check your state's unemployment office for specific rules before filing.