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January 6, 2020
2020-0021

State supplemental income tax withholding rates for 2020

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 2020 are shown in the chart below.

Changes from 2019 are highlighted in yellow.

Jurisdiction*

Last update of withholding tables

Supplemental withholding rate

Comments

Alabama

1/1/2019

5.00%

 

Arkansas

4/3/2019

6.90%

 

California

1/1/2020

6.60% and 10.23% on bonus and stock options

 

Jurisdiction*

Last update of withholding tables

Supplemental withholding rate

Comments

Colorado

1/1/2019

4.63%

 

Georgia

1/1/2020

  
 

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

1/1/2020

6.925%

 

Illinois

1/1/2020

4.95%

 

Indiana

1/1/2020

3.23%

 

Iowa

1/1/2020

6.00%

No change in the supplemental rate for 2020 per the Department regulation.

Kansas

1/1/2017

5.00%

 

Kentucky

1/1/2020

5.00%

 

Maine

1/1/2020

5.00%

 

Jurisdiction*

Last update of withholding tables

Supplemental withholding rate

Comments

Maryland

1/1/2020

5.75% plus local tax rate; 8.0% for Maryland nonresidents and 3.2% for residents employed in Delaware

 

Massachusetts

1/1/2020

5.00 %

 

Michigan

1/1/2020

4.25%

 

Minnesota

1/1/2020

6.25%

 

Missouri

1/1/2020

5.40%

 

Montana

1/1/2019

6.00%

 

Nebraska

12/1/2017

5.00%

 

New Mexico

1/1/2020

4.90%

 

New York

1/1/2020

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

 

North Carolina

1/1/2020

5.35%

 

North Dakota

1/1/2020

1.84%

 

Jurisdiction*

Last update of withholding tables

Supplemental withholding rate

Comments

Ohio

1/1/2020

3.50%

(Ohio Administrative Code 5703-7-10, last revised November 23, 2018.)?

Oklahoma

1/1/2020

5.00%

 

Oregon

1/1/2020

8.00%

 

Pennsylvania

3/1/2014

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

 

Rhode Island

1/1/2020

5.99%

 

South Carolina

1/1/2020

7.00%

 

Vermont

1/1/2020

30% of 2019 federal income tax withholding

 

Jurisdiction*

Last update of withholding tables

Supplemental withholding rate

Comments

Virginia

1/1/2016

 5.75%

 

West Virginia

1/1/2007

  
 

Annual wages under $10,000

3.00%

These rates reflect the "OPTIONAL ONE EARNER/ONE JOB TABLES FOR PERCENTAGE METHOD OF WITHHOLDING" from page 20 of the West Virginia withholding guide.

 

$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 Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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