An independent severance calculator, built to be calm and correct.
severanceaftertax.com shows what a severance offer actually nets after taxes — and whether some of that pay is money your employer already owes you under the WARN Act. It's free, runs entirely in your browser, and takes no side against you or your employer.
Who runs this
severanceaftertax.com is published by Red Goggles LLC, an independent operator of free web calculators and reference tools. We are not a law firm, a tax preparer, an insurer, an outplacement service, or a lead-generation site for attorneys. We don't sell anything, we don't collect leads, and we don't take your information — the calculator runs on your device and nothing you type is sent to us.
Why this site exists
Most severance offers come with a tight signing window — often days to two weeks. In that window a person is asked to evaluate a number that looks larger than it will actually deposit, and to sign a release without knowing whether part of the offer is pay their employer was already legally required to give them. Two facts get missed most often: severance is withheld as a supplemental wage (a flat 22% federal rate, not your paycheck's withholding table), and an employer covered by the WARN Act that gives short notice may simply be paying wages it already owed. This tool exists to surface both, fast, before you sign.
How it's calculated
The estimate applies published federal and state figures to the exact offer you enter:
- Federal supplemental withholding (IRS Pub. 15 / 15-T). Severance is a supplemental wage: a flat 22% federal withholding rate, rising to 37% on cumulative supplemental wages above $1,000,000 in a calendar year. Those rates were made permanent by P.L. 119-21.
- FICA (SSA). Social Security at 6.2% up to the annual wage base ($184,500 for 2026, per the SSA's October 2025 COLA announcement) and Medicare at 1.45% with no cap, plus the additional 0.9% Medicare tax above $200,000 single / $250,000 married filing jointly.
- State income tax. A top-marginal approximation based on your state of residence at separation, using the Tax Foundation's 2026 state-rate summary; nine states levy no state income tax at all.
- WARN Act thresholds (U.S. DOL, and state statutes). Federal WARN (100+ employees, 60 days' notice) plus state variants such as California, New York, New Jersey, Illinois, and Maine — used to flag whether the offer may include pay you were already owed.
- COBRA vs. ACA (2025 KFF Employer Health Benefits Survey). Typical COBRA premiums and a note that marketplace premium tax credits become available the day employer coverage ends.
The full method is spelled out on the calculator page under How it works and in the FAQ.
How we stay neutral and current
Layoffs are stressful, and this site is deliberately calm about it. We don't use alarm language, we don't shame employers as a class — many offers exceed the legal minimum — and we don't frame WARN as "sue your employer." We present the math and the questions worth asking. Tax figures, FICA wage bases, and state rates change annually; WARN state variants get amended; so every page carries a dated "last reviewed" note and we replace figures with official numbers as they publish. The ACA premium-tax-credit context reflects the enhanced-credit expiration that took effect January 1, 2026.
How the site is funded
severanceaftertax.com is free and supported by display advertising, kept intentionally restrained given the audience. Advertising never mixes with your inputs — see our privacy page for exactly what is and isn't collected.
Estimate only — not tax or legal advice. This site provides an educational estimate, not tax, legal, or financial advice. For a package that matters, confirm the tax planning with a CPA and any WARN exposure or release language with an employment attorney. See our full disclaimer.
Questions or corrections? Reach us on the contact page.