Free PTO Payout Calculator (2026)

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Use our free PTO payout calculator to instantly figure out the cash value of your unused vacation hours when you leave a job, retire, or cash out PTO. Get gross PTO payout, federal supplemental tax withholding, FICA taxes, and your estimated net take-home — all in one click.

free pto payout calculator

Free PTO Payout Calculator

Calculate the cash value of your unused PTO hours and your take-home payout.

How Are You Paid?

Hourly

Salaried

Hourly Rate

$

/hr

Unused PTO Balance

hours

Or enter days below — calculator will auto-convert at your daily hours.

days

hr/day

PTO Accrual Rate (optional)

hrs / pay period

Use this to project how much more PTO you’ll earn before leaving.

Pay Periods Remaining

periods

Tax Withholding Method

Supplemental flat 22% (most common for PTO payouts)

Custom rate

State Tax Rate

Use 0% for no-income-tax states (FL, TX, NV, WA, etc.).

How This Free PTO Payout Calculator Works

Our free PTO payout calculator handles every common situation: leaving a job, retiring, switching companies, or cashing out PTO at year-end. Here’s how to use it:

Step 1: Choose Your Pay Type

Select hourly or salaried. If you’re salaried, the calculator converts your annual salary to an effective hourly rate based on your standard hours per week.

Step 2: Enter Your Pay Rate

Hourly employees enter their hourly rate. Salaried employees enter their annual salary and standard weekly hours (default 40).

Step 3: Enter Your Unused PTO

Enter your PTO balance directly in hours. If you only know it in days, type the number of days and your standard hours per workday, then click “Convert Days → Hours.”

Step 4: Add Future Accrual (Optional)

If you’re projecting ahead — for example, calculating PTO payout for a future quit date — enter your accrual rate per pay period and how many pay periods remain. The calculator adds that to your current balance.

Step 5: Set Tax Withholding

The default uses the IRS supplemental wage rate of 22%, which is what most employers apply to PTO payouts. Enter your state tax rate (use 0% for no-tax states like Florida, Texas, or Nevada).

Step 6: Click “Calculate PTO Payout”

Instantly see your gross payout, all tax withholdings broken down, your net take-home amount, and a what-if table showing how the payout changes at different PTO balance levels.

Frequently Asked Questions

Is PTO payout required by law?

It depends on your state. Some states — including California, Colorado, Illinois, Louisiana, Massachusetts, Nebraska, and North Dakota — legally require employers to pay out unused, accrued vacation when you leave a job. In most other states, payout is required only if the employer’s written policy says so. Always check your state labor department and your employee handbook to confirm your rights.

How is PTO payout taxed?

The IRS classifies PTO payout as supplemental wages, just like bonuses. Most employers withhold federal tax at the flat 22% supplemental rate (37% on amounts over $1 million in a calendar year). Your PTO payout is also subject to all the standard payroll taxes — Social Security (6.2% up to $168,600 in 2026), Medicare (1.45% on all earnings), and applicable state and local taxes. Our free PTO payout calculator handles all of this automatically.

Can my employer refuse to pay out my PTO?

If you live in a state where PTO payout is required by law, no — they must pay it. If you live in a state where it’s not legally required, your employer can refuse only if their written policy clearly states PTO is forfeited at termination. “Use it or lose it” policies are legal in many states but illegal in California and a few others. Get your employee handbook and review the PTO section before you give notice.

How do I calculate PTO payout for a salaried employee?

Convert your annual salary to an hourly rate first: divide salary by your annual work hours (typically 40 hours × 52 weeks = 2,080). Then multiply your unused PTO hours by that hourly rate. For example, a $65,000 salary equals $31.25/hour, so 80 unused hours × $31.25 = $2,500 gross PTO payout. Our free PTO payout calculator does this automatically when you select “Salaried.”

When do I get my PTO payout?

Most state laws require employers to pay accrued PTO with your final paycheck — which means by your last day of work or within a few business days, depending on the state. California requires it on your last day if you give 72+ hours notice. New York gives employers more flexibility. Check your state’s final-paycheck law for the specific deadline.

Should I cash out PTO or use it before leaving?

Using PTO before leaving lets you stay employed (with benefits like health insurance) for longer, and your PTO is paid at your normal withholding rate — which may be lower than the 22% supplemental rate applied to a lump-sum payout. Cashing out gives you a single check with higher tax withholding but lets you start a new job sooner. Run both scenarios through this calculator and compare net dollars to your situation.

Does PTO payout count toward 401(k) contributions?

Sometimes, but not always. Many employer 401(k) plans exclude PTO payout from “eligible compensation” for matching purposes. Check your plan’s Summary Plan Description, or ask HR before assuming a PTO cashout will boost your 401(k) match. If your plan does allow it, you can sometimes elect to defer a portion of the PTO payout to your 401(k) — see our free 401k calculator to model the impact.

Need More Free Pay Tools?

Understanding PTO Payout Rules and Strategy

PTO payout — the cash value of your unused vacation hours when you leave a job — can mean the difference between a lean transition and a comfortable cushion. For some employees with years of accrued vacation, a final PTO check can be tens of thousands of dollars. Our free PTO payout calculator gives you the exact dollar figure, but understanding the rules behind PTO payout helps you maximize what you receive.

State Laws Governing PTO Payout

U.S. employment law treats accrued vacation as “earned wages” in many states — meaning once you’ve earned it, the employer cannot legally take it away. California is the strictest: PTO is fully vested wages, “use it or lose it” policies are illegal, and unused PTO must be paid at termination. Colorado, Illinois, Massachusetts, Nebraska, North Dakota, and Louisiana have similar (though varying) rules requiring payout. Most other states allow employers to set their own policies, but if the company’s written policy promises payout, the employer is contractually bound. According to the U.S. Department of Labor, federal law does not require PTO payout — it’s entirely a state and employer matter.

How PTO Payout Withholding Differs From Regular Pay

The IRS treats PTO payout as supplemental wages, the same category as bonuses, severance, and commissions. Per IRS Publication 15, employers can either (a) withhold a flat 22% federal income tax on supplemental wages paid separately from regular wages, or (b) aggregate the PTO with your regular pay and use standard withholding tables. Most companies use the flat 22% method for simplicity. Important: this is just withholding, not your actual tax liability. If your effective federal rate is 12%, you’ll get the difference back as a tax refund. If your marginal rate is 32%, you’ll owe more at tax time. Use our free tax withholding calculator to project the full picture.

Strategy: Cash Out vs. Use It Before Leaving

If your state and employer allow you to use PTO during your notice period, this is almost always more tax-efficient than a lump-sum payout. PTO used as paid time off is taxed at your normal payroll withholding rate, which is usually lower than the 22% flat supplemental rate. You also keep your benefits (health insurance, 401(k) eligibility) active for longer. The downside: you delay your start date at the next job. The math depends on your situation. As a rule of thumb, if your marginal federal rate is 12% or less, using PTO is more tax-efficient. Above 22%, cashing out is roughly neutral or slightly favorable.

Why “Use It or Lose It” Policies Exist

Employers favor “use it or lose it” PTO policies for two reasons: (1) it forces employees to actually take vacation, which reduces burnout and turnover, and (2) it caps the company’s liability — accrued unused PTO is technically a financial obligation on the company’s books. From an employee perspective, these policies pressure you to either take vacation by year-end or forfeit it. In states like California where these policies are illegal, employers often use accrual caps instead — once you hit a cap (e.g., 2× your annual accrual), you stop accruing more until you use some.

Negotiating PTO Payout in Your Severance

If you’re laid off or being negotiated out, PTO payout is often a lever in severance discussions. Even in states where payout isn’t legally required, asking for “full PTO payout in addition to severance” is reasonable and often granted. Calculate your exact PTO value with this calculator before negotiating, so you know the dollar amount you’re asking for. Severance offers commonly include PTO payout, several weeks of base pay, and sometimes extended health benefits — all in exchange for signing a release of claims.