Texas PTO Cash-Out Calculator
See the net value of cashing out unused PTO in Texas after federal, state, and FICA tax.
$2,500.00
Gross payout before taxes
Est. taxes: ~$741.25 (29.7%)
$1,758.75
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.
Texas Payday Law & Forfeiture Guidelines
Under the Texas Payday Law administered by the Texas Workforce Commission (TWC), final wages must be paid within 6 calendar days of discharge (fired or laid off) or by the next regularly scheduled payday if the employee quits or resigns. Texas law does not mandate a payout of accrued vacation or PTO at separation. Instead, employer-governed policies, employee handbooks, or written agreements dictate whether unused time off is paid out or forfeited. Use-it-or-lose-it policies are fully enforceable in Texas.
Cashing out PTO in Texas
A Texas 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, no state income tax, 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 Texas 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 Texas PTO Payout Law.
Should you cash out PTO in Texas?
Because Texas has no law requiring PTO payout at separation, unused time can be lost when you leave if your policy doesn’t pay it out. A mid-employment cash-out (where your employer offers one) is often the main way to realize its value first. Use-it-or-lose-it is allowed in Texas.
Mid-employment PTO cash-outs in Texas are governed strictly by company policy as no state statute regulates active employee vacation liquidations. Payouts are classified as supplemental wages, which are subject to a flat 22% federal tax rate and FICA, with no state-level income tax deducted in Texas.
Official Texas 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: Texas Workforce Commission
- Phone Support: (800) 832-9243
- Official Website: https://www.twc.texas.gov/
Frequently asked questions
How much is a PTO cash-out worth after tax in Texas? +
A cash-out is a supplemental wage: 22% flat federal withholding, no state income tax, and 7.65% FICA. Enter your rate and hours above to see the Texas net.
Can I cash out PTO while employed in Texas? +
Cashing out PTO while still employed depends on your employer's policy, not Texas law — no state requires in-employment cash-out. Check your handbook for whether and when it is allowed.
Is a Texas cash-out taxed differently from a payout when I leave? +
No. Both are supplemental wages with the same withholding: 22% federal, no state income tax, and FICA. The difference is timing, not tax treatment.