How this severance pay calculator works
Model: gross = salary ÷ 52 × weeks; federal withheld at the 2026 supplemental flat 22%; FICA 7.65% applies on top (employers almost always take it); state entered manually (0% in 9 states, ~5% typical). Runway = net ÷ monthly expenses — the honest number is smaller than the headline: a 12-week $21,923 package nets ~$15k after 22%+7.65%+5%, which at $5,000/mo expenses buys just under 3 months.
Frequently asked questions
How is severance taxed?
Severance is taxable wages, not 'other income.' Employers usually withhold the flat supplemental rate — 22% federal up to $1M (37% above) — plus FICA (7.65%) unless your year-to-date wages already passed the $184,500 Social Security base. Your final return settles over/under-withholding at normal bracket rates.
What's a normal severance package in 2026?
One month per year of service is the classic benchmark; tech offers 10–16 weeks at mid-level, exec contracts reach 52+. Additional asks: COBRA coverage months, accelerated vesting, prorated bonus — quantify each in the runway column before signing the release.
Does severance delay unemployment benefits?
In many states yes — courts treat it as 'wages in lieu,' spreading it week-by-week against UI eligibility (NY/CA apply the delay). File immediately anyway; the 'months of runway' shown here is the number that decides whether UI timing even matters to you.