06 January 2020 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. Contact Information
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ATTACHMENT Document ID: 2020-0021 |
