An estimate to plan with — not advice to act on.
severanceaftertax.com helps you understand the math on a severance offer and surfaces the questions worth asking. It is educational only. It is not tax, legal, insurance, or financial advice, and it isn't a substitute for a professional who knows your full situation.
Not professional advice
Nothing on this site is tax advice, legal advice, insurance advice, or financial advice, and using the calculator does not create a professional relationship of any kind. For a severance package material to your finances, confirm the tax planning with a CPA and any WARN Act exposure or release-agreement language with an employment attorney. Many attorneys offer a flat-fee review of a severance agreement that is small relative to what's at stake.
What is estimated vs. exact
The results are approximations built from the figures you enter and from published federal and state data:
- Federal withholding uses the supplemental-wage method (a flat 22% rate, or 37% above $1,000,000 cumulative for the year). Withholding is not your final tax bill — your actual liability is settled at filing, when the severance is added to your other income and run through the bracket structure.
- State income tax is shown as a top-marginal approximation; your real state liability depends on brackets, deductions, and credits.
- WARN Act output flags whether an employer may be covered and whether the offer could include pay already owed. Coverage turns on facts we can't fully see — headcount, single-site definitions, notice specifics, and statutory exceptions — so treat it as a prompt to ask, not a legal conclusion.
- COBRA vs. ACA figures use survey averages (2025 KFF Employer Health Benefits Survey) and general marketplace rules; your actual premiums, subsidy eligibility, and Special Enrollment timing depend on your household and plan.
- Unemployment notes are general; state UI rules on severance vary and change.
Why timing matters
Tax figures change every year — supplemental thresholds, the FICA wage base, and state rates all get revised — and WARN state variants are amended periodically. Figures on this site reflect the sources and "last reviewed" dates shown on the calculator and may not yet incorporate the latest change. Always verify against the current authoritative source before you rely on a number.
Where to verify
- Federal tax withholding: IRS Publication 15 / 15-T.
- WARN Act: U.S. Department of Labor — WARN, plus your state's labor department for any state variant.
- Losing coverage and marketplace options: HealthCare.gov.
- Your specific situation: a CPA and, for anything touching the release or WARN, an employment attorney.
No affiliation
severanceaftertax.com is published by Red Goggles LLC and is an independent calculator. It is not affiliated with, endorsed by, or sponsored by any employer, the IRS, the U.S. Department of Labor, any state agency, any insurer, or any law firm. It does not refer you to attorneys and is not a lead-generation service.
See also our terms of use and privacy page. Questions? Contact us.
Last reviewed: May 2026. Figures reflect 2026 IRS publications, the SSA's October 2025 COLA, the 2025 KFF Employer Health Benefits Survey, Tax Foundation's 2026 state-rate summary, and federal/state WARN statutes.