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PTO Payout Calculator

Calculate what your unused paid time off is worth when you leave a job, and whether your state requires payout.

Updated 2026-09-30
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Payout rules vary by state

What your unused PTO is worth

Multiply unused PTO hours by your current hourly rate. If you’re salaried, divide your salary by 2,080 first. 64 hours at $28.50 is $1,824 before tax.

Whether you’re owed a payout depends on your state and your employer’s written policy. Some states, including California and Colorado, treat earned vacation as wages that must be paid when you leave.

PTO payout
— Gross, before tax
Unused PTO
—
Hourly rate
—
Gross payout
—

PTO payout
—

Common questions

Do employers have to pay out unused PTO?

No federal law requires it. It depends on your state and your employer’s policy. Some states require payout of earned vacation; others only require it when the written policy promises it.

How is a PTO payout taxed?

As supplemental wages. Employers can withhold a flat 22% federal income tax when it’s paid separately, plus Social Security, Medicare and state tax.

How do I calculate payout on a salary?

Divide your annual salary by 2,080 to get an hourly rate, then multiply by unused hours. $60,000 ÷ 2,080 = $28.85 an hour, so 40 unused hours pays $1,153.85.

Is unused sick leave paid out too?

Usually not. Most payout requirements cover vacation only, unless your employer combines vacation and sick time into a single PTO bank.

How this is calculated

Method
Hourly rate = annual salary ÷ 2,080 when paid a salary.
Payout = unused PTO hours × hourly rate.
Take-home (optional) applies 22% federal, 7.65% Social Security and Medicare, and the state’s supplemental withholding rate.
Assumptions
  • Payout uses your final regular rate of pay.
  • A day is 8 hours.
  • State notes are a summary, not legal advice; your written policy also matters.
Sources
Methodology reviewed 2026-09-30 · See our methodology for how we build and test calculators.