Comparable to the optional flat rate of 25% (for 2015 and 2016) that can be used for computing federal income tax on supplemental wages such as bonuses, some states also allow for a fixed supplemental rate of income tax withholding.

Following is our 2016 survey of states that allow for the optional use of the supplemental withholding method and the rates that apply for 2016. Changes since our January 2015 survey are highlighted in yellow.

States offering a supplemental withholding tax rate option* as of January 4, 2016

Changes between the 2016 and 2015 survey are highlighted in yellow

* There is no supplemental rate of withholding for Arizona, Connecticut, Delaware, District of Columbia, Hawaii, Kentucky, Louisiana, Mississippi, New Jersey, Puerto Rico, or Utah.

** Illinois. The 2016 withholding table publication includes a warning that reads: "This rate may be subject to change per legislative order," referring to the possibility that the state income tax rate may increase for 2016 in order to resolve a budget shortfall created by the reduction to 3.75% effective January 1, 2015. The state has been operating without a fiscal year 2016 budget since July 1, 2015.

*** Pennsylvania. State legislators are continuing to strike a budget resolution, the outcome of which could change the state income tax rates.

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