Your Information
Breakdown
| Annual salary | — |
| Hourly rate | — |
| Accrued PTO (hours) | — |
| Estimated gross payout | — |
This is an estimate of gross (pre-tax) pay. Lump-sum PTO payouts are often taxed at the supplemental rate (~22% federal + state). Consult your HR department or an employment attorney for your exact payout.
How PTO Payout Works
When you leave a job, any paid time off you've earned but haven't used may be owed to you in cash. Whether you actually get it — and how much — comes down to two things: the law in your state, and your employer's written PTO policy. Some states treat accrued vacation as wages you've already earned, so it must be paid out no matter what the handbook says. In the rest, your company policy controls.
How Your Payout Is Calculated
A PTO payout is simply your hourly pay rate multiplied by your accrued PTO hours. If you're salaried, convert your salary to an hourly rate first by dividing by 2,080 — the number of working hours in a year (40 hours × 52 weeks):
Annual salary ÷ 2,080 = hourly rate → hourly rate × accrued PTO hours = gross payout
For example, a $75,000 salary works out to about $36.06 per hour. With 40 hours of accrued PTO, the gross payout would be roughly $1,442. If your balance is in days rather than hours, multiply days by your hours per workday (usually 8) first. The calculator above does all of this automatically and flags whether your state requires payout.
Is PTO Payout Required by Law?
There's no federal law requiring PTO payout, and state law falls into three groups. Seven states require payout of earned vacation at separation whatever the policy says: California, Colorado, Illinois, Massachusetts, Montana, Nebraska and North Dakota (Montana's rule covers vacation, not a combined PTO bank, and North Dakota has one narrow exception for short-tenure employees who quit without notice). Two more require it only when a condition is met: Maine, for private employers with 11 or more Maine employees (vacation accrued since 2023), and Rhode Island, once the employee has completed a year of service. In all nine, a policy cannot take away vacation you have already earned when you leave — although several, Illinois and Massachusetts among them, still allow a use-it-or-lose-it deadline during employment if employees are told in advance. In a further group — including New York, Maryland, Ohio and Washington DC — payout is the default: you are owed the money unless your employer's written policy clearly says otherwise. Everywhere else, payout depends on your employer's written policy — which is enforceable as wages if it promises payout. For the rules where you work, see our PTO laws by state guide.
How PTO Payouts Are Taxed
A PTO payout is taxable income, treated as "supplemental wages" by the IRS. Federal income tax is usually withheld at the flat 22% supplemental rate (for payouts under $1 million in a year), on top of Social Security, Medicare, and any state income tax. That's why a payout check often looks smaller than expected — the calculator shows the gross, pre-tax figure, so plan for the take-home to be lower.
Frequently Asked Questions
Is my employer required to pay out unused PTO when I leave?
It depends on your state and your employer's policy. Seven states — California, Colorado, Illinois, Massachusetts, Montana, Nebraska and North Dakota — require payout of accrued vacation at separation by law, whatever the policy says. Maine (private employers with 11 or more Maine employees) and Rhode Island (after a year of service) require it when those conditions are met. In New York, Maryland, Ohio, Washington DC and a few other jurisdictions, payout is owed by default unless a clear written policy says otherwise. Elsewhere, payout depends on your written company policy: if the handbook promises it, it's generally enforceable as wages; if it clearly establishes forfeiture, that's usually upheld.
How is a PTO payout calculated?
Your hourly rate × your accrued PTO hours. To get an hourly rate from a salary, divide annual salary by 2,080 (40 hours × 52 weeks). A $75,000 salary is about $36.06/hour, so 40 accrued PTO hours pays roughly $1,442 gross.
How is PTO payout taxed?
A lump-sum payout counts as supplemental wages. Federal tax is typically withheld at the flat 22% supplemental rate (under $1M/year), plus Social Security, Medicare, and any state income tax. The calculator shows gross pay; your net will be lower.
Do I get paid for unused PTO if I'm fired?
Where state law requires payout, yes — it applies whether you quit or are terminated, subject to each state's conditions (Maine's employer-size rule, Rhode Island's one-year service rule, and North Dakota's narrow exception, which applies only to employees who quit). Elsewhere it depends on your employer's written policy, which may treat voluntary and involuntary separation differently.
Is unused sick leave paid out too?
Usually not. Most payout laws and policies cover accrued vacation or general PTO, not separately-banked sick leave, which is typically forfeited at separation unless your state or employer specifically requires paying it out. Check your handbook and state rules.