The chart also shows if the state has a flat tax rate, meaning only one rate of tax applies regardless of the wages paid, or alternatively, the highest marginal withholding rate according to the state's latest computer withholding formula.Ĭhanges in tax rates from Decemare highlighted in yellow in the attached pdf. The state supplemental income tax withholding rates currently available for 2021 are shown in the chart below. Note that the flat 37% rate applies even if an employee has submitted a federal Form W-4 claiming exemption from federal income tax withholding. Where allowed, the supplemental rate greatly simplifies income tax withholding calculations on irregular payments such as bonuses, equity compensation and separation pay.Įmployers may optionally use a federal flat rate of income tax federal withholding of 22% on supplemental wages up to $1 million for the year however, a mandatory flat rate of 37% applies to supplemental wages over $1 million. Like the federal supplemental income tax withholding rate, states/territories may also allow for an optional flat percentage of income tax withholding for wages that are in addition to regular pay.

To assist you in reviewing your state income tax withholding rates for 2022, beginning on the following page is a chart of the most recent income tax withholding tables published by states and US territories and the supplemental withholding rate if allowed. 2022 state income tax and supplemental withholding rates (preliminary as of December 22, 2021)

California federal tax rate