19 January 2017 State supplemental income tax withholding rates for 2017 Similar to the federal supplemental income tax withholding rate of 25% (39.6% for supplemental wages exceeding $1 million), most states also allow for a flat percentage of income tax withholding for wages that are in addition to regular pay. Where allowed, the supplemental rate greatly simplifies income tax withholding calculations on irregular payments such as bonuses, equity compensation and separation pay. The state supplemental income tax withholding rates that apply in 2017 are shown in the chart below. Changes from 2016 are highlighted in yellow. State supplemental withholding tax rate options for 2017 | State | Web site reference | Supplemental withholding tax rate | Alabama | http://www.revenue.alabama.gov/withholding | 5.00% | Arkansas | http://www.dfa.arkansas.gov/offices/incomeTax /withholding/Pages/withholdingForms.aspx | 6.90% | California | http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm | | Supplemental Wages | | 6.60% | Bonus and Stock Options | | 10.23% | Colorado | https://www.colorado.gov/pacific/sites/default/files/DR1098.pdf | 4.63% | Georgia | https://dor.georgia.gov/sites/dor.georgia.gov/ files/related_files/document/2016_WH_Employers_Tax_Guide.pdf | | Annual Wages: Under $8,000 | | 2.00% | $8,000 - $10,000 | | 3.00% | $10,000 - $12,000 | | 4.00% | $12,000 - $15,000 | | 5.00% | over $15,000 | | 6.00% | Idaho | https://tax.idaho.gov/i-1026.cfm | 7.40% | Illinois | http://tax.illinois.gov/taxforms/Withholding/IL-700-T.pdf | 3.75% | Indiana | http://www.in.gov/dor/files/dn01.pdf | 3.23% ê | Iowa | https://tax.iowa.gov/sites/files/idr/forms1/44001_0.pdf | 6.00% | Kansas | http://www.ksrevenue.org/withholdingtt.html | 4.50% | Maine | http://www.maine.gov/revenue/forms/with/2017/17_ WH_Tab&instructions.pdf | 5.00% | Maryland | http://forms.marylandtaxes.com/17_forms/Withholding_Guide.pdf | MD resident 5.75% plus local WH Rate; 7.5% for MD nonresidents and 3.2% for residents employed in Delaware | Massachusetts | http://www.mass.gov/dor/docs/dor/forms/wage-rpt/pdfs/circ-m-current.pdf | 5.1% | Michigan | http://www.michigan.gov/taxes/0,4676,7-228-43519_43531 — ,00.html | 4.25% | Minnesota | http://www.revenue.state.mn.us/ Forms_and_Instructions/wh_inst_17.pdf | 6.25% | Missouri | http://dor.mo.gov/forms/4282_2017.pdf | 6.00% | Montana | http://revenue.mt.gov/Portals/9/businesses/ wage_withholding/Employers_Tax_Guide.pdf | 6.00% | Nebraska | http://www.revenue.nebraska.gov/circ-en/2017/2017cir-en_whole.pdf | 5.00% | New Mexico | http://www.tax.newmexico.gov/witholding-tax-historic-rates.aspx | 4.90% | New York | https://www.tax.ny.gov/pdf/publications /withholding/nys50_t_nys_117.pdf | 9.62% (For 2017, New York City is 4.25%, Yonkers resident is 1.61135% and Yonkers nonresident is 0.50%) | North Carolina | http://dornc.com/downloads/nc30_2017.pdf | 5.599% ê | North Dakota | https://www.nd.gov/tax/user/businesses/ formspublications/income-tax-withholding/ income-tax-withholding-instructions — tables | 1.84% (subject to change) | Ohio | http://www.tax.ohio.gov/employer_withholding.aspx | 3.50% | Oklahoma | https://www.ok.gov/tax/documents/2017WHTables.pdf | 5.00% | Oregon | https://www.oregon.gov/DOR/forms/FormsPubs/withholding- tax-formulas_206-436_2017.pdf | 9.00% | Pennsylvania | http://www.revenue.pa.gov/FormsandPublications/Formsfor Businesses /Documents/Employer%20Withholding/rev-580.pdf | 3.07% (+ employee unemployment insurance tax of 0.07%) | Rhode Island | http://www.tax.ri.gov/forms/2017/Withholding/2017%20 Withholding%20Tax%20Booklet.pdf | 5.99% | South Carolina | https://dor.sc.gov/tax/withholding | 7.00% | Vermont | http://tax.vermont.gov/sites/tax/files/documents/ WithholdingInstructions.pdf | 24% of federal withholding | Virginia | http://www.tax.virginia.gov/sites/tax.virginia.gov/files/taxforms/ withholding-tax/any/employer-withholding-instructions-any.pdf | 5.75% | West Virginia | http://www.state.wv.us/taxrev/uploads/It100-1-a.pdf | | Annual Wages under $10,000 | | 3.00% | $10,000 - $25,000 | | 4.00% | $40,000 - $60,000 | | 6.00% | over $60,000 | | 6.50% | Wisconsin | https://www.revenue.wi.gov/pubs/pb166.pdf | | Annual wages: under $10,910 | | 4.00% | $10,910 - $21.820 | | 5.84% | $21,820 -$240,190 | | 6.27% | $240,190 and over | | 7.65% |
*There is no supplemental rate of withholding for Arizona, Connecticut, Delaware, District of Columbia, Hawaii, Kentucky, Louisiana, Mississippi, New Jersey, Puerto Rico, or Utah. Contact Information
For additional information concerning this Alert, please contact:
| Employment Tax Services Group | | • Debera Salam | (713) 750-1591 |
|
Other Contacts| Employment Tax Services Group | | • Gregory Carver | (214) 969-8377 | | • Richard Ferrari | (212) 773-5714 | | • Kenneth Hausser | (732) 516-4558 | | • Kristie Lowery | (704) 331-1884 | | • Christina Peters | (614) 232-7112 | | • Debbie Spyker | (720) 931-4321 |
|
———————————————
ATTACHMENT Document ID: 2017-0121 |
