Supplemental Tax Rates

Supplemental tax rates should be used when paying supplemental wages. This article will go over the rates by each state.

What is a supplemental tax?

A supplemental tax rate is a percentage that would be used on income generally paid outside of a regular payroll cycle. The supplemental tax rate would apply to federal and state income taxes withheld on these supplemental wages. Some examples of supplemental income are:

  • Bonus Payments
  • Commission Payments
  • Awards or Prizes

The Fuse system keeps track of supplemental tax rates in the background tax calculation system. As long as you use an earning code with the type Bonus (Supplemental Tax Rate), the federal and state taxes will automatically calculate on the supplemental pay, even if that amount is added to a regular payroll check. To review your earning code types in the system, go to Settings > Payroll Setup > Earning Codes.

Supplemental Tax Rates

The following is a list of the supplemental tax rates by state as of 2024. You must contact the agency directly if you have any questions regarding specific states or locations.

Federal Income 22%
Alabama 5%
Alaska No state withholding taxes
Arizona  No supplemental tax rate
Arkansas 4.4%
California 10.23% for Bonus/Stock Options, 6.6% on everything else
Colorado  No supplemental tax rate
Connecticut  No supplemental tax rate
Delaware  No supplemental tax rate, but deferred compensation should be 5% (Delaware's FAQ)
District of Columbia - Washington, DC No supplemental tax rate
Florida No state withholding taxes


Supplemental rates are dependent on the employee's annual income:

<$8,000: 2%

$8,000 - $10,000: 3%

$10,000.01 - $12,000: 4%

$12,000.01 - $15,000: 5%

>$15,000: 5.49%

Hawaii  No supplemental tax rate
Idaho  No supplemental tax rate
Illinois  No supplemental tax rate
Indiana  No supplemental tax rate
Iowa 6%
Kansas 5%
Kentucky  No supplemental tax rate
Louisiana  No supplemental tax rate
Maine 5%
Maryland Use the rate at the bottom of the local tax table. Use 3.2% for MD residents working in DE or other nonreciprocal states.
Massachusetts  No supplemental tax rate
Michigan  No supplemental tax rate
Minnesota 6.25%
Mississippi  No supplemental tax rate
Missouri 4.8%
Montana 5%
Nebraska 5%
Nevada No state withholding taxes
New Hampshire No state withholding taxes
New Jersey  No supplemental tax rate
New Mexico 5.9%
New York 11.7%
North Carolina 4.6%
North Dakota 1.5%
Ohio 3.5%
Oklahoma 4.75%
Oregon 8%
Pennsylvania  No supplemental tax rate
Rhode Island 5.99%
South Carolina  No supplemental tax rate
South Dakota No state withholding taxes
Tennessee No state withholding taxes
Texas No state withholding taxes
Utah  No supplemental tax rate
Vermont 30% of Federal Income Taxes, or withhold 6% for nonqualified deferred compensation
Virginia 5.75%
Washington No state withholding taxes
West Virginia

Supplemental rates are dependent on the employee's annual gross salary:

<$10,000: 2.36%

$10,000 - $25,000: 3.15%

$25,000.01 - $40,000: 3.54%

$40,000.01 - $60,000: 4.72%

>$60,000: 5.12%


Supplemental rates are dependent on the employee's annual gross salary:

<$12,760: 3.54%

$12,760 - $25,520: 4.65%

$25,520.01 - $280,950: 5.3%

>$280,950: 7.65%

Wyoming No state withholding taxes