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December 23, 2021
2021-2312

2022 state income tax and supplemental withholding rates (preliminary as of December 22, 2021)

To assist you in reviewing your state income tax withholding rates for 2022, beginning on the following page is a chart of the most recent income tax withholding tables published by states and US territories and the supplemental withholding rate if allowed.

Supplemental withholding rate

Like the federal supplemental income tax withholding rate, states/territories may 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 over $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. (IRS Reg. Section 31.3402(g)-1.)

The state supplemental income tax withholding rates currently available for 2021 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.

Changes in tax rates from December 31, 2021 are highlighted in yellow in the attached pdf.

Jurisdiction

Last revision date of income tax withholding publication/tables

Supplemental

withholding rate

Flat income tax rate

Highest marginal withholding rate

Alabama*

8/12/2021

5.00%

N/A

5.00%

American Samoa

1/1/2007

N/A

N/A

27.00%

Arizona*

1/1/2021 (2022 tables are pending)

N/A

N/A

5.1% (SB 1828 reduces the highest tax rate to 4.5% effective January 1, 2022)

Arkansas*

1/1/2021

5.90%

N/A

5.90%

California*

1/1/2022

6.60% and 10.23% on bonus and stock options

N/A

14.63%

Colorado

1/1/2022

N/A

4.55%

N/A

Connecticut*

1/1/2022

N/A

N/A

6.99%

Delaware

1/1/2014

N/A

N/A

6.60%

District of Columbia

1/1/2018

N/A

N/A

8.95%

Georgia

1/1/2022

 

N/A

5.75%

 

Annual wages under $8,000

2.00%

  
 

$8,000-$10,0000

3.00%

  
 

$10,001-$12,000

4.00%

  
 

$12,001-$15,000

5.00%

  
 

over $15,000

5.75%

  

Hawaii

9/13/2021

N/A

N/A

7.9% (top individual tax rate is 11%)

Idaho*

7/7/2021

6.50%

N/A

6.5%

Illinois

1/1/2022

N/A

4.95%

N/A

Indiana

1/1/2022

N/A

3.23% plus local income tax rate

N/A

Iowa*

1/1/2022

6.00%

N/A

8.53%

Kansas*

6/21/2021

5.00%

N/A

5.70%

Kentucky

1/1/2022

N/A

5.00%

N/A

Louisiana

2/16/2018

N/A

N/A

6.0% (highest withholding

rate is 5.64%)

Maine*

1/1/2022

5.00%

N/A

7.15%

Maryland

1/1/2022

Use the rate at the bottom of the local tax table; 3.2% for residents of Maryland working in Delaware and other nonreciprocal states

N/A

Use the rate at the bottom of the local tax table; 3.2% for residents of Maryland working in Delaware and other nonreciprocal states

Massachusetts

1/1/2020

N/A

5.00%

N/A

Michigan

1/1/2022

N/A

4.25%

N/A

Minnesota*

1/1/2022

6.25%

N/A

9.85%

Mississippi

10/1/2020

N/A

N/A

5.00%

Missouri*

1/1/2022

5.30%

 

5.30%

Montana*

1/1/2021

6.00%

N/A

6.60%

Nebraska*

1/1/2022

5.00%

N/A

6.95%

New Jersey

1/1/2021

N/A

N/A

11.80%

New Mexico*

1/1/2022

5.90%

N/A

5.90%

New York*

1/1/2022

11.70% (New York City is 4.25%, Yonkers resident is 1.95975%, Yonkers nonresident is 0.50%.)

N/A

11.70%

North Carolina

1/1/2022

N/A

5.09%

N/A

North Dakota*

1/1/2022

1.84%

N/A

2.90%

Ohio*

9/1/2021

3.5%

N/A

5.009% (Note that HB 110 reduced Ohio's individual income tax rates by 3% retroactive to January 1, 2021. The Ohio Department of Taxation has not yet issued revised withholding instructions.)

Oklahoma*

1/1/2022

4.75%

N/A

4.75%

Oregon*

1/1/2022

8.00%

N/A

9.90%

Pennsylvania

3/1/2014

N/A

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

N/A

Puerto Rico

1/1/2017

N/A

N/A

33.00%

Rhode Island*

1/1/2021

5.99%

N/A

5.99%

South Carolina

1/1/2022

N/A

N/A

7.00%

Utah

1/1/2021

N/A

4.95%

N/A

Vermont*

1/1/2021 (2022 tables are pending)

30% of federal income tax withholding

N/A

8.75%

Virginia*

1/1/2022

5.75%

N/A

5.75%

West Virginia

1/1/2007

Annual wages under

$10,000

$10,000-$25,000

$25,000-$40,000

$40,000-$60,000

over $60,000

3.00%

4.00%

4.50%

6.00%

6.50%

N/A

6.50%

Wisconsin*

1/1/2022

Annual wages under

$12,760

$12,760-$25,520

$25,520-$280,950

$280,950 and over

3.54%

4.65%

5.30%

7.65%

N/A

7.65%

Legend

*See notes below.

_________________________________________________________________________________________________

Alabama

The supplemental withholding rate is 5%. (Withholding Tax Tables and Instructions for Employers and Withholding Agents, p. 3.)

Arizona

Effective January 1, 2021, the highest marginal tax rate is 4.5% plus a 3.5% surcharge on income exceeding $250,000 ($500,000 for married and head of household). (Arizona Rev. Stat. Ann. 43-1011.)

Under SB 1828 and effective January 1, 2022, the law createsa two-tier individual income tax rate structure of 2.55% and 2.98% depending on filing status and taxable income and, if general fund revenue thresholds

are met, a reduced two-tier individual income tax rate structure of 2.53% and 2.75% or a 2.5% tax rate beginning in 2023.

Arkansas

The supplemental withholding rate is 5.9%. (Arkansas Department of Finance and Administration, Withholding Tax, p. 4.)

California

The supplemental withholding rate is 10.23% on bonuses and stock options and 6.6% on other types of compensation (e.g., overtime pay, commissions, sales awards, and vacation pay). (2022 California Employer's Guide, p. 15.)

Connecticut

There is no supplemental rate of withholding. (Connecticut Employer's Tax Guide, p. 12.)

Idaho

The supplemental rate of withholding is 6.5%. (Idaho State Tax Commission, Computing Withholding.)

Iowa

The supplemental rate of withholding is 6%. (Iowa Withholding Tax Information.)

Kansas

The supplemental rate of withholding is 5.0%. (Kansas Withholding Tax Guide, p.8.)

Maine

The supplemental rate of withholding is 5.0%. (Maine Withholding Tables for Individual Income Tax, p.4.)

Minnesota

The supplemental rate of withholding is 6.25%. (Minnesota Income Tax Withholding, Instruction Booklet and Tax Tables, p.7.)

Missouri

The supplemental rate of withholding is 5.3%. (2022 Missouri Withholding Tax Formula, p.1.)

Montana

The highest withholding rate is 6.6% and the supplemental rate of withholding is 6%. (Withholding Tax Guide with Montana Withholding Tax Tables, p.2.) Under SB 159, and effective January 1, 2022, the top marginal income tax rate is reduced from 6.9% to 6.75%.

Nebraska

The supplemental withholding rate is 5%. (2022 Nebraska Circular EN, p.9.)

New Mexico

The supplemental withholding rate is 5.9%. (FYI-104, New Mexico Withholding Tax, p.4.)

North Dakota

The supplemental withholding rate is 1.84%. (2022 North Dakota Income Tax Withholding Rates & Instructions, p.58.)

Ohio

The supplemental withholding rate is 3.5%. (Ohio Administrative Code 5703-7-10, rev. 11-23-2018.)

Oklahoma

The supplemental withholding rate is the highest withholding rate. (Okla. Admin. Code Section 710:90-1-6.)

Oregon

The supplemental withholding rate is 8%. (Oregon Withholding Tax Formulas, p.3.)

Rhode Island

The supplemental withholding rate is 5.99%. (Rhode Island Employer's Income Tax Withholding Tables, p.6.)

Vermont

The supplemental withholding rate is 30% of federal income tax withheld. (Vermont Income Tax Withholding Instructions, Tables and Charts, p.3.)

Virginia

The supplemental withholding rate is 5.75%. (Virginia Income Tax Withholding Guide For Employers, p.10.)

Wisconsin

The supplemental withholding method is explained in the Wisconsin Withholding Tax Guide, p.24.

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

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