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January 20, 2020
2020-0139

State income tax withholding tables and supplemental rates for 2020

To assist you in reviewing your state income tax withholding rates for 2020, on the following pages is a chart of the most recent income tax withholding tables published by states and US territories. Reference the column "Revision date" to identify the last year the publication was updated. If the effective date shown in the chart is prior to 2020 and the last column (2020 withholding guide/tables pending?) is "no," we have confirmed with the state that no update is expected for 2020.

New this year, the chart also shows essential withholding rate information for use in evaluating the most appropriate calculation method when making nonperiodic payments to employees.

Withholding on supplemental/nonperiodic wage payments

For federal income tax withholding purposes, employers may optionally use a flat rate of 22% on supplemental wages up to $1 million for the year, provided federal income tax was withheld from regular wages in the previous or current year. If the employee's supplemental wages exceed $1 million in the year, a mandatory flat rate of 37% applies to supplemental wages over $ 1 million. This mandatory 37% rate applies even if the employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. (IRS Reg. Section 31.3402(g)-1.)

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.

Even if a supplemental rate of withholding is an option, employers should consider any potential impact of over- or under-withholding. For instance, consider if the supplemental withholding rate is significantly higher or lower than the withholding result using the applicable marginal withholding rate.

The state supplemental income tax withholding rates currently available for 2020 are shown in the chart below. The chart also shows if the state has a flat tax rate, meaning, only one rate of tax applies regardless of the wages paid; or alternatively, the highest marginal withholding rate according to the state's latest computer withholding formula.

2020 state tax tables and supplemental withholding rates* (as of January 15, 2020)

Changes from 2019 are highlighted in yellow.

Jurisdiction

(Click on the state name to access the withholding tables in effect as of the revision date shown)

Revision date

2020 withholding guide/tables pending?

Supplemental rate

Flat tax rate

Highest marginal withholding rate

Alabama

1/1/2019

No

5.00%

N/A

5.00%

Arizona

1/1/2020

No

N/A

N/A

5.10%

Arkansas

4/3/2019

No

6.90%

N/A

6.90%

California

1/1/2020

No

6.60% and 10.23% on bonus and stock options

N/A

14.630%

Colorado

1/1/2019

No (note that a new worksheet applies in 2020 for Forms W-4 received in 2020)

N/A

4.63%

N/A

Connecticut

1/1/2020

No

N/A

N/A

6.99%

Delaware

1/1/2017

No

N/A

N/A

6.60%

District of Columbia

1/1/2018

No

N/A

N/A

8.95%

Georgia

1/1/2020

No

If annual wages are:

Under $8,000 (2.00%)

$8,000 to $10,000 (3.00%)

$10,000 to $12,000 (4.00%)

$12,000 to $15,000 (5.00%)

Over $15,000 (5.75%)

N/A

5.75%

Hawaii

1/1/2019

Yes

N/A

N/A

11.0%

Idaho

6/1/2019

Yes

6.925%

N/A

6.925%

Illinois

1/1/2020

No

N/A

4.95%

N/A

Indiana

1/1/2020

No

N/A

3.23%

N/A

Iowa

1/1/2020

No

6.00% (unchanged for 2020 per Department regulation)

N/A

8.53%

Kansas

1/1/2017

No

5.00%

N/A

5.70%

Kentucky

1/1/2020

No

N/A

5.0%

N/A

Louisiana

2/16/2018

No

N/A

N/A

6.00%

Maine

1/1/2020

No

5.00%

N/A

7.15%

Maryland

1/1/2020

No

N/A

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

N/A

Massachusetts

1/1/2020

No

N/A

5.00%

N/A

Michigan

1/1/2020

No

N/A

4.25%

N/A

Minnesota

1/1/2020

No

6.25%

N/A

9.85%

Mississippi

1/1/2020

No

N/A

N/A

5.0%

Missouri

1/1/2020

No

5.40%

N/A

5.40%

Montana

1/1/2019

No

6.00%

N/A

6.60%

Nebraska

12/1/2017

No

5.00%

N/A

6.95%

New Jersey

1/1/2020

No

N/A

N/A

11.80%

New Mexico

1/1/2020

No

4.90%

N/A

4.90%

New York

1/1/2020

No

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

N/A

9.62%

North Carolina

1/1/2020

No

N/A

5.35%

N/A

North Dakota

1/1/2020

No

1.84%

N/A

2.9%

Ohio

1/1/2020

No

3.50% (Ohio Administrative Code 5703-7-10, rev. 11-23-2018)

N/A

5.164%

Oklahoma

1/1/2020

No

5.00%

N/A

5.00%

Oregon

1/1/2020

No

8.00%

N/A

8.75%

Pennsylvania

11/1/2019

No

N/A

3.07% plus employee unemployment insurance tax rate of 0.06%

N/A

Puerto Rico

1/1/2017

No

N/A

N/A

33.00%

Rhode Island

1/1/2020

No

5.99%

N/A

5.99%

South Carolina

1/1/2020

No

7.00%

N/A

7.00%

Utah

10/1/2019

Yes

N/A

4.95%

N/A

Vermont

1/1/2020

No

30% of federal income tax withholding

N/A

8.75%

Virginia

1/1/2016

No

5.75%

N/A

5.75%

West Virginia

1/1/2007

No

If annual wages are:

Less than $10,000 (3.00%)

$10,000 to $25,000 (4.00%)

$25,000 to $40,000 (4.50%)

$40,000 to $60,000 (6.00%)

over $60,000 (6.50%)

(Based on the Optional one earner/one job tables for the percentage method of withholding from page 20 of the West Virginia withholding guide)

N/A

6.50%

*For 2020, there is no supplemental or flat tax rate of withholding for Arizona, Connecticut, Delaware, District of Columbia, Hawaii, Louisiana, Mississippi, New Jersey or Puerto Rico.

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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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