Texasvs
California
Texas keeps $403 more net
$17,447 vs $17,044 net
Updated for 2026 · 30 comparisons
Severance Tax by State Comparison
Same package formula in both states — who keeps more after modeled federal, state, and employee payroll tax? Vignette: $100,000 salary · 5 years · 2 weeks/year · single · lump sum. Pick any two states or open a featured corridor.
By Sammy S. · Founder · AuthorUpdated for 2026
15
Featured pairs
30
Compare URLs
$1,131
Largest featured gap
Higher net
Winner rule
Compare any two states
Pick any two states to compare vignette take-home and UI offset categories.
Featured comparisons
Winner = higher vignette take-home. Click through for the scoreboard, value ladder, and UI offset notes.
Floridavs
New York
Florida keeps $483 more net
$17,447 vs $16,964 net
TexasvsNew York
Texas keeps $483 more net
$17,447 vs $16,964 net
WashingtonvsCalifornia
Washington keeps $285 more net
$17,328 vs $17,044 net
FloridavsCalifornia
Florida keeps $403 more net
$17,447 vs $17,044 net
New Hampshirevs
Massachusetts
New Hampshire keeps $1,131 more net
$17,447 vs $16,316 net
NevadavsCalifornia
Nevada keeps $403 more net
$17,447 vs $17,044 net
Illinoisvs
Indiana
Indiana keeps $385 more net
$16,495 vs $16,879 net
Pennsylvaniavs
New Jersey
New Jersey keeps $318 more net
$16,856 vs $17,174 net
OregonvsWashington
Washington keeps $665 more net
$16,663 vs $17,328 net
Virginiavs
Maryland
Virginia keeps $839 more net
$17,112 vs $16,272 net
ConnecticutvsNew York
Connecticut keeps $398 more net
$17,362 vs $16,964 net
ColoradovsTexas
Texas keeps $846 more net
$16,600 vs $17,447 net
GeorgiavsFlorida
Florida keeps $960 more net
$16,487 vs $17,447 net
ArizonavsCalifornia
California keeps $78 more net
$16,966 vs $17,044 net
Biggest take-home gaps
Ranked by vignette net gap among featured pairs (2026).
| # | Comparison | Higher net in | Net gap |
|---|---|---|---|
| 1 | New Hampshire vs Massachusetts | New Hampshire | $1,131 |
| 2 | Georgia vs Florida | Florida | $960 |
| 3 | Colorado vs Texas | Texas | $846 |
| 4 | Virginia vs Maryland | Virginia | $839 |
| 5 | Oregon vs Washington | Washington | $665 |
| 6 | Florida vs New York | Florida | $483 |
| 7 | Texas vs New York | Texas | $483 |
| 8 | Texas vs California | Texas | $403 |
| 9 | Florida vs California | Florida | $403 |
| 10 | Nevada vs California | Nevada | $403 |
| 11 | Connecticut vs New York | Connecticut | $398 |
| 12 | Illinois vs Indiana | Indiana | $385 |
| 13 | Pennsylvania vs New Jersey | New Jersey | $318 |
| 14 | Washington vs California | Washington | $285 |
| 15 | Arizona vs California | California | $78 |
Key takeaways
- Vignette: $100,000 salary · 5 years · 2 weeks/year · single · lump sum. Winner on every pair = higher modeled take-home after federal, state, and employee payroll tax.
- Largest featured net gap: New Hampshire vs Massachusetts ≈ $1,131 (New Hampshire keeps $1,131 more net).
- National vignette spread: Alaska keeps about $17,447 vs Vermont at $15,764 (≈ $1,683 apart).
- Gross package is the same in both states on a pair (~$19,231 / 10 weeks) — state tax is the main moving piece.
- Unemployment-insurance offset categories are labeled on pair pages but are separate from the paycheck tax ranking.
What this severance comparison covers
Each state-vs-state page holds the package formula fixed, models take-home after federal, state, and payroll tax, and labels UI offset categories. Winner = higher vignette net.
Gross package
Weeks × weekly pay from the locked formula (headline salary $100,000).
Modeled net
Gross minus federal income tax, employee FICA, and state wage tax where levied.
Net gap
How much more take-home one state keeps on the same package formula.
UI offset note
Whether severance may delay or reduce unemployment benefits — separate from income-tax math.
Compare hub
What this severance comparison hub covers
A layoff package’s weeks offer is only half the story. This hub holds the package formula fixed ($100,000 salary · 5 years · 2 weeks/year · single · lump sum) and compares modeled take-home across states under the same 2026 single-filer lump-sum engine.
Featured corridors highlight common moves and dual-coast searches. Each pair page adds a scoreboard, package ladder, UI offset notes, and educational SEO.
Tax treatment
What “tax on severance” means here
US severance is generally treated as wages for federal income tax and FICA. States with a wage income tax usually tax the package too; no-wage-tax states still show federal and payroll withholding.
The vignette is an annualized single-filer model on the lump sum as if it were the year’s wage income for bracket purposes — payroll systems may withhold differently mid-year. Reconcile on the return.
On the national vignette, nets range from about $15,764 (Vermont) to $17,447 (Alaska).
UI vs tax
Paycheck tax vs unemployment offsets
UI offset categories describe whether severance delays or reduces unemployment benefits week-for-week. They do not change the income-tax engine on these pages.
A no-offset state can still withhold more income tax than a full-offset state. Tax and UI are separate decisions — lump sum vs installments often matter more for UI timing than for total income tax owed.
File for unemployment promptly and confirm current rules with each state agency; categories here are summaries, not claims advice.
Limits
What these comparisons leave out
Employer taxes, city wage taxes, negotiated extras (outplacement, COBRA subsidies), and equity acceleration are outside the vignette.
Installments that cross calendar years can change Social Security wage-base timing even when state tax looks similar.
Canada uses different rules — use the Canada severance calculator for provinces.
Planning guide
How to compare severance tax by state
1
Pick the corridor
Open a featured pair or use the picker (e.g. Texas vs California). Both URL directions exist.
2
Read vignette net
Higher take-home wins the tax corridor on the locked package formula.
3
Check state tax lines
No-wage-tax states still show federal + FICA; the gap is usually state income tax.
4
Read the UI label
Full / partial / no offset affects benefit timing — not the income-tax scoreboard itself.
5
Scan the package ladder
Smaller or larger offers can change the dollar gap even when the ranking direction stays the same.
6
Customize the calculator
Re-run salary, years, lump sum vs installments, and filing status on the tool page.
Worked examples
Texas vs California
$17,447 vs $17,044 net — Texas keeps $403 more net.
Open →Florida vs New York
$17,447 vs $16,964 net — Florida keeps $483 more net.
Open →Largest featured gap · New Hampshire vs Massachusetts
About $1,131 — New Hampshire keeps $1,131 more net.
Open →Customize your package
Change salary, years, and schedule in the calculator at /severance-pay-calculator.
Open →Concepts
Gross package vs net
Gross is weeks × weekly pay. Net here is gross minus modeled federal income tax, employee payroll, and state tax.
Why federal still appears
Even in no-wage-tax states, federal income tax and FICA apply to severance — both sides show substantial total withholding.
UI offset category
Describes benefit interaction with severance. It does not rewrite the income-tax ranking.
Lump sum vs installments
Total tax owed depends on the tax year(s) income lands in. Installments can stretch a UI blackout in full-offset states.
Myths vs facts
“No state income tax means almost no tax on severance.”
Federal income tax and FICA still apply. On this vignette even high-net states still withhold a large share of the ~$19,231 package.
“The UI-friendly state always wins the tax ranking.”
UI offset rules and income-tax schedules are different systems. A no-offset state can still show higher income-tax withholding than a full-offset neighbor.
“Employer withholding equals your final tax bill.”
Supplemental wage methods and mid-year brackets can differ from this annualized model. Reconcile on the return and adjust estimated payments if needed.
“Installments always lower total tax.”
Spreading payments can change wage-base timing and UI eligibility windows; total income tax is not automatically lower.
Who these comparisons help
Good fit
- Workers comparing a package after offers in two states.
- People deciding whether location (or remote pay) changes net severance.
- Anyone pairing tax corridors with unemployment timing questions.
- Readers who want engine-sourced gaps, not ballpark blog percentages.
Use caution
- You need installments, equity, or multi-year timing modeled in detail.
- City wage tax or reciprocal agreements dominate the check.
- You need legal advice on release agreements or claims strategy.
- Canada / ESA packages — use the Canada tool instead.
Checklist before you rely on a corridor
- Confirm the package formula (salary, years, weeks/year) matches your offer — or re-run the calculator.
- Note which state keeps more net on the vignette and the dollar gap.
- Read each state’s UI offset label before assuming benefit timing.
- Decide lump sum vs installments with both tax year and UI rules in mind.
- Re-run filing status and any PTO/accrual add-ons in the severance calculator.
- Document assumptions when sharing numbers with a spouse, lawyer, or advisor.
Common mistakes
- Comparing weeks of gross without converting both to take-home.
- Ignoring federal and FICA because one state has no wage income tax.
- Treating UI offset labels as the income-tax ranking.
- Forgetting that lump-sum withholding can look harsh mid-year vs the annual model.
- Skipping the package ladder when your offer is far from the vignette size.
Glossary
- Severance package
- Employer payment tied to separation — modeled here as weeks of pay from salary and tenure.
- Vignette
- Locked assumptions so every state pair uses the same package formula.
- UI offset
- How severance interacts with unemployment benefits in that state (summary category).
- Supplemental wages
- IRS category that often includes bonuses and severance for withholding methods.
Frequently asked questions
Each pair uses the same package formula ($100,000 salary · 5 years · 2 weeks/year · single · lump sum) and models take-home after federal, state, and employee payroll tax. The winner is the state with higher vignette net. Pair pages also note UI offset categories.
New Hampshire vs Massachusetts shows about a $1,131 take-home gap (New Hampshire keeps $1,131 more net).
Yes. Use the picker on this page or go to /severance-pay-calculator/compare/{state-a}-vs-{state-b} (for example texas-vs-california). Featured corridors are listed below.
UI offset rules affect whether benefits are reduced while you receive severance — they are separate from the federal/state tax model on the scoreboard. Each pair page labels the UI category for both states.
$100,000 salary · 5 years · 2 weeks/year · single · lump sum. Re-run your salary, years of service, and lump sum vs installments in the severance calculator.
Customize packages at /severance-pay-calculator. This page is the compare hub for state corridors.
Severance is generally treated as wages for federal income tax and FICA even when the state has no wage income tax. That is why both sides of a corridor show substantial total withholding.
Total income tax depends on the tax year(s) the payments land in. Installments can also change UI timing in full-offset states. Re-run both schedules in the calculator when your offer is not a single lump sum.
People search both ways. Each URL carries the same engine data; the scoreboard still labels the higher-net state.
Not always. Supplemental wage methods and mid-year brackets can differ from an annualized single-filer vignette. Use the scoreboard for corridors, then reconcile on the return.
Local wage taxes are outside the default vignette unless your state model already includes them. Verify city/county rules when they apply.
No — Canadian ESA / common-law / retiring-allowance rules differ. Use the Canada severance calculator for provinces.
Calculator & related tools
- Severance pay calculator — customize salary, years, and payment schedule
- Unemployment benefits by state — Weekly benefit amounts and duration
- Bonus tax by state — Supplemental wage withholding rankings
- Money duration calculator — How long a package lasts at your burn rate
- Emergency fund calculator — Runway after a layoff