Article
2-minute read
Supplemental Tax Rates by State (2025)
US payroll
PEO
Author
Shannon Ongaro
Last Update
January 31, 2025
Published
January 06, 2025
Key takeaways
- Due to their nature as additional income, supplemental wages are subject to specific tax rates, both at the federal and state level.
- While the federal supplemental tax rate is a flat 22%, states have different approaches, with some imposing specific rates, others applying regular income tax rates, and some having no provisions for supplemental wages at all.
- Given the varying state regulations, ensuring accurate tax withholdings and payments can be challenging for employers. Using a payroll management solution like Deel US Payroll can help streamline this process.
Supplemental pay, also known as supplemental wages, is additional income an employee receives on top of their regular monthly wages or salary.
Since supplemental wages differ from regular wages in regard to payment dynamics, the tax rate applied also differs. The federal supplemental tax rate is a flat 22%, but states may have their own rates or provisions.
Here's a look at supplemental tax rates by state (2025):
| State | Supplemental Withholding Rate |
|---|---|
| Alabama | 5% |
| Alaska | N/A |
| Arizona | N/A |
| Arkansas | 3.9% |
| California | 6.60% - 10.23% |
| Colorado | N/A |
| Connecticut | N/A |
| Delaware | 5.0% recommended |
| District of Columbia | N/A |
| Florida | 5.50% |
| Georgia | N/A |
| Hawaii | N/A |
| Idaho | N/A |
| Illinois | N/A |
| Indiana | N/A |
| Iowa | 6.0% |
| Kansas | 5% |
| Kentucky | N/A |
| Louisiana | N/A |
| Maine | 5% |
| Maryland | N/A |
| Massachusetts | N/A |
| Michigan | N/A |
| Minnesota | 6.25% |
| Mississippi | N/A |
| Missouri | 4.70% |
| Montana | 5% |
| Nebraska | 5% |
| Nevada | N/A |
| New Hampshire | N/A |
| New Jersey | N/A |
| New Mexico | 5.90% |
| New York | 11.70% |
| North Carolina | 4.35% |
| North Dakota | 1.50% |
| Ohio | 3.50% |
| Oklahoma | 4.75% |
| Oregon | 8% |
| Pennsylvania | N/A |
| Puerto Rico | N/A |
| Rhode Island | 5.99% |
| South Carolina | N/A |
| South Dakota | N/A |
| Tennessee | N/A |
| Texas | N/A |
| Utah | N/A |
| Vermont | 30% of federal income tax withholding |
| Virginia | 5.75% |
| Washington | N/A |
| West Virginia | N/A |
| Wisconsin | 3.54% - 7.65% |
| Wyoming | N/A |
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Rates are accurate at the time of publishing. Consult a professional before proceeding.
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About the author
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
