California PTO Cash-Out Calculator
See the net value of cashing out unused PTO in California after federal, state, and FICA tax.
$2,500.00
Gross payout before taxes
Est. taxes: ~$997.00 (39.9%)
$1,503.00
Estimated take-home
Estimates only. PTO payout rights and tax withholding vary by state, employer policy, and individual circumstances. This is not legal, tax, or financial advice. Consult your state labor department or a qualified professional. See our methodology.
California 2026 Final Paycheck Regulations
Under California Labor Code Section 201 and 203, final paychecks must be delivered immediately upon involuntary termination (fired or laid off) or within 72 hours of voluntary resignation (unless 72 hours' notice is provided, in which case it is due on the last day). California's minimum wage is set at $16.90 per hour for 2026. Unused accrued vacation and PTO are classified as earned wages under California law and must be paid out in full at separation. Use-it-or-lose-it policies are strictly prohibited. Late payouts trigger waiting time penalties equal to one day of pay for each day late, capped at a maximum of 30 days.
Cashing out PTO in California
A California cash-out pays your hourly rate for each unused PTO hour while you stay employed. Because it is a supplemental wage, withholding is 22% federal, an estimated 10.2% California supplemental rate, and 7.65% FICA — so your take-home is noticeably less than the gross. Whether a cash-out is offered at all is set by your employer's policy.
Leaving instead of cashing out? See your full payout and the law on the California PTO payout guide, run the numbers in the free PTO payout calculator, or weigh keeping the time with the rollover calculator. You can also read our comprehensive guide to the California PTO Payout Law.
Should you cash out PTO in California?
Because California treats accrued vacation as earned wages, you don’t have to cash out early to get your money — unused PTO must be paid when you leave the job. Cashing out now mainly helps if you want the cash sooner, since the tax is identical either way. Use-it-or-lose-it forfeiture of earned time is not allowed in California.
In California, cashing out vacation hours while remaining actively employed is governed strictly by the employer's internal policy, as no state statute mandates mid-employment cash-outs. When cash-outs are allowed, the payments are classified as supplemental wages and taxed accordingly, including a flat 22% federal tax rate, FICA, and California's supplemental state withholding tax.
Official California Wage Claim Resources
If you are denied your legal PTO payout or have wage disputes under state labor codes, you can contact the official agency below:
- Wage Agency: California Labor Commissioner’s Office (DLSE)
- Phone Support: (833) 526-4636
- Official Website: https://www.dir.ca.gov/dlse/
Frequently asked questions
How much is a PTO cash-out worth after tax in California? +
A cash-out is a supplemental wage: 22% flat federal withholding, an estimated 10.2% California supplemental rate, and 7.65% FICA. Enter your rate and hours above to see the California net.
Can I cash out PTO while employed in California? +
Cashing out PTO while still employed depends on your employer's policy, not California law — no state requires in-employment cash-out. Check your handbook for whether and when it is allowed.
Is a California cash-out taxed differently from a payout when I leave? +
No. Both are supplemental wages with the same withholding: 22% federal, an estimated 10.2% California supplemental rate, and FICA. The difference is timing, not tax treatment.