Vacation payout calculator.
See the value of your unused accrued vacation after federal, state, and FICA tax \u2014 salaried or hourly, all 50 states.
How are you paid?
Your full pay before taxes are taken out
Most full-time jobs are 40
How many PTO hours you have left. Check your latest pay stub.
This changes the legal advice below, not the dollar amount.
Final Separation Pay Estimation
ptopayoutcalculator.com — estimate, not tax or legal advice
Estimated Final Separation Pay
Gross Value of Earned Vacation Time
$2,500.00
80 hrs × $31.25/hr
Pick your state above to see how much tax comes out and what's left over.
Estimates only. Tax withholding may differ based on your full-year income, filing status, and deductions. Consult a tax professional for exact figures.
Disclaimer: Calculations are based on the 2026 IRS Supplemental Wage Rate (22% flat federal withholding) and current state labor department guidelines. Always consult an employment attorney for binding legal disputes.
Disclaimer: These figures are automated estimates for informational and educational use under current labor guidelines. This calculator does not process binding tax or legal withholding, and does not constitute formal accounting or employment law advice. Always verify final calculations with your local labor department or a qualified legal expert.
Add this free, interactive calculator to your own site or blog. It runs instantly in the browser and helps your readers calculate their PTO payout.
<iframe src="https://ptopayoutcalculator.com/embed/calculator/" width="100%" height="560" style="border:1px solid #ebebeb;border-radius:12px;max-width:600px;width:100%" title="PTO Payout Calculator" loading="lazy"></iframe>
<p style="font-size:12px;text-align:center;color:#4b5a70">Powered by <a href="https://ptopayoutcalculator.com/" target="_blank" style="color:#533afd;text-decoration:none;font-weight:500">PTOPayoutCalculator.com</a></p> 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.
How to calculate vacation payout for salaried employees
Your final vacation payout is estimated by cashing out your accrued, unused vacation hours. Using a vacation time calculator (or vacation hours calculator) helps you convert accumulated time off into dollars. If you are salaried, you must first convert your annual salary into an hourly rate. Divide your base pay by 2,080 standard annual work hours, then multiply that rate by your unused hours to find the gross total. Once you have the gross amount, supplemental taxes are deducted to determine your final vacation payment calculator net take-home. For a complete calculation, the main PTO Payout Calculator applies federal supplemental withholding (22%), FICA, and state tax rules automatically.
How to Calculate Vacation Accrual & Time Off
If you want to know how to calculate vacation time or how to calculate vacation accrual during active employment, the process involves pro-rating your yearly vacation allowance. An online vacation calculator for accruing vacation allows you to count the exact vacation hours earned per pay cycle. Tracking this throughout the year ensures you stay under carryover limits and can verify that your final exit check matches your records.
Which states require vacation payout upon termination?
Vacation payout laws vary state-by-state, and they are generally divided into two main legal categories. While vacation payout rules are often determined by state vesting laws or employer policies, your overall final separation wages must comply with strict state-specific paycheck delivery deadlines. You can calculate your total final paycheck including regular wages using the Final Paycheck Calculator:
- States treating vacation as Vested Wages: In states such as California, Colorado, Illinois, Indiana, Louisiana, Massachusetts, Nebraska, and North Carolina, accrued vacation is legally classified as wages that vest as labor is performed. In these states, employers are strictly prohibited from implementing "use-it-or-lose-it" policies that forfeit earned vacation, and they must pay out all accrued hours upon termination. Refer to the specific regulations on our 50-state PTO payout law guide.
- States deferring to Employer Policy: In states like Texas, Florida, and New York, employers are not required by statute to pay out vacation unless their own employee handbook, written contract, or past practice establishes a promise to do so. However, if a policy promises a payout, courts in these states will enforce it as a binding agreement.
Vacation Pay vs. Sick Leave vs. Combined PTO
It is legally critical to understand how the terminology in your employee handbook affects your payout eligibility:
- Vacation Leave: Typically earned and used for leisure. In vesting states, this is fully protected and payable at separation.
- Sick Leave: Intended for medical recovery. Almost no state mandates the payout of unused sick leave at termination, even in states with mandatory paid sick leave laws. You can estimate the value of your unused sick leave and review state rules with our sick leave payout calculator.
- Combined PTO (Paid Time Off) Banks: If your employer does not separate sick leave and vacation, but instead offers a single consolidated "PTO" bucket, courts in vesting states (like California and Illinois) treat the entire combined bank as vacation wages. This means the employer cannot exclude a portion of the bank under the guise of "sick leave" and must pay out the entire balance.
Collective Bargaining Agreements (Union Contracts)
In some states, collective bargaining agreements (CBAs) negotiated by labor unions are allowed to deviate from standard state-level vacation payout regulations. For instance, a state law might mandate a full payout of all unused vacation hours, but explicitly permit union contracts to establish different terms (such as forfeiting vacation if an employee fails to provide a 2-week notice). Check the specific provisions of your CBA if you are a union member.
Frequently asked questions
How is vacation payout calculated? +
Multiply your accrued unused vacation hours by your hourly rate for the gross payout. Salaried? Divide your annual salary by 2,080 first. The payout is then taxed as a supplemental wage.
Does my employer have to pay out unused vacation? +
It depends on your state. More than 20 states — including California, Colorado, Illinois, and Massachusetts — treat accrued vacation as earned wages that must be paid at separation and cannot be forfeited. In other states, payout follows your employer’s written policy.
Is unused vacation paid out like unused sick leave? +
Usually not. Accrued vacation is often payable at separation, while unused sick leave generally is not — unless your employer combines them into a single PTO bank or local law requires sick-leave payout.
How much vacation do US employees usually get? +
A common starting point is about 10 paid vacation days after one year, rising to roughly 15 days at five years and 20 at ten or more. This calculator works for any accrued balance you enter.
How to avoid taxes on vacation payout? +
You cannot entirely avoid taxes on a vacation payout, as the IRS classifies it as taxable supplemental wages. However, you can defer the taxes by requesting your employer roll the payout amount directly into a pre-tax retirement account, like a 401(k) or Traditional IRA, provided you have not maxed out your annual contribution limits.
How to calculate vacation payout for salaried employees? +
To calculate vacation payout for a salaried employee, you must first convert the annual salary into an hourly rate. Divide your annual salary by 2,080 (the standard number of working hours in a year). Then, multiply that hourly rate by your total accrued, unused vacation hours.