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January 8, 2019
2019-0064

State supplemental income tax withholding rates for 2019

Similar to the federal supplemental income tax withholding rate, most states also allow for an optional 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.

Employers may optionally use a federal flat rate of income tax federal withholding of 22% on supplemental wages up to $1 million for the year; however, a mandatory flat rate of 37% applies to supplemental wages in excess of $ 1 million. Note that the flat 37% rate applies even if an employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding.

The state supplemental income tax withholding rates that have thus far been released for 2019 are shown in the chart on the following page.

Changes from 2017 are highlighted in yellow.

Jurisdiction*

Last update

Supplemental withholding rate

Comments

Alabama

1/1/2018

5.00%

 

Arkansas

1/1/2015

6.90%

 

California

1/1/2019

6.60% and 10.23% on bonus and stock options

 

Colorado

4/1/2018

4.63%

 

Georgia

1/1/2019

  
 

Annual wages under $8,000

2.00%

 
 

$8,000 - $10,0000

3.00%

 
 

$10,000 - $12,000

4.00%

 
 

$12,000 - $15,000

5.00%

 
 

over $15,000

5.75%

 

Idaho

6/20/2018

6.925%

 

Illinois

1/1/2019

4.95%

 

Indiana

1/1/2019

3.23%

 

Iowa

1/1/2019

6.00%

No change in the supplemental rate for 2019 per the Department regulation.

Kansas

1/1/2017

5.00%

 

Kentucky

1/1/2019

5.00%

 

Maine

1/1/2019

5.00%

 

Maryland

1/1/2019

5.75% plus local tax rate; 7.5% for Maryland nonresidents and 3.2% for residents employed in Delaware

 

Massachusetts

1/1/2019

5.05%

 

Michigan

1/1/2019

4.25%

 

Minnesota

1/1/2019

6.25%

 

Missouri

1/1/2019

5.40%

 

Montana

12/1/2017

6.00%

 

Nebraska

12/1/2017

5.00%

 

New Mexico

1/1/2019

4.90%

 

New York

1/1/2019

9.62% (New York City is 4.25%, Yonkers resident is 1.61135% and Yonkers nonresident is 0.50%)

 

North Carolina

1/1/2019

5.35%

 

North Dakota

1/1/2019

1.84%

 

Ohio

1/1/2019

3.50%

The supplemental rate of withholding will remain at 3.5% for 2019, as provided for under state regulations.? (Ohio Administrative Code 5703-7-10, last revised November 23, 2018.)?

Oklahoma

1/1/2019

5.00%

 

Oregon

1/1/2019

9.00%

 

Pennsylvania

3/1/2014

3.07% plus employee unemployment insurance tax rate of 0.06%.

 

Rhode Island

1/1/2019

5.99%

 

South Carolina

1/1/2019

7.00%

 

Vermont

1/1/2019

30% of 2019 federal income tax withholding

 

Virginia

1/1/2016

 5.75%

 

West Virginia

1/1/2007

  
 

Annual wages under $10,000

3.00%

 
 

$10,000 - $25,000

4.00%

 
 

$25,000 - $40,000

4.50%

 
 

$40,000 - $60,000

6.00%

 
 

over $60,000

6.50%

 

Wisconsin

4/1/2014

  
 

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.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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