When you leave a job with unused paid time off, you may be owed a payout — but the amount, and whether you’re owed anything at all, depends on your state and your employer’s written policy. Enter your hours and pay rate below for an instant gross estimate.
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Calculate your PTO payout
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Assumes 40 hours/week, 52 weeks/year (2,080 hrs). See assumptions.
Estimated gross PTO payout
Effective hourly rate
PTO hours paid out
Before you rely on this number: Whether your employer is required to pay out unused PTO depends on your state and your written policy. This is a gross estimate only — taxes will reduce the actual amount you receive.
Gross estimates only — not legal, payroll, or tax advice. See methodology.
How this calculator works
The calculator estimates gross PTO payout by multiplying your unused PTO hours by your effective hourly rate. For salaried employees, the hourly equivalent is calculated by dividing annual salary by 2,080 (40 hours/week × 52 weeks) — the standard full-time work year. This is the most common conversion method, but your employer may use a different divisor depending on your actual scheduled hours.
Actual payout obligations can also depend on: state law, your written employer policy or handbook, how your employer classifies PTO versus vacation versus sick leave, and the circumstances of your separation. The calculator does not determine whether you are legally owed a payout. See our full methodology and sources.
Example calculations
Hourly employee — 24 unused hours at $19/hr
24 unused PTO hours × $19.00/hr = $456 gross. Taxes will reduce the actual amount received — federal income tax withholding, FICA, and state taxes all apply. The tax treatment depends on how the employer processes the payment.
Whether this payout is required depends on the employer’s state and written PTO policy.
Salaried employee — one week of unused PTO, $65,000/yr salary
$65,000 ÷ 2,080 hrs = $31.25/hr effective rate. One week = 40 hours. 40 × $31.25 = $1,250 gross. Taxes will reduce the take-home amount — federal withholding, FICA, and state income tax all apply. Withholding methods vary depending on how the employer processes the final payment.
States like California, Colorado, and Illinois treat accrued vacation/PTO as earned wages that must be paid out. In other states, payout depends on the written policy.
Employee in a policy-dependent state — 32 hours at $22/hr
32 hours × $22.00/hr = $704 gross. In states like Texas, Florida, or New York where payout is not mandated by law, this amount is only owed if the employer’s written policy promises it. If the policy has a use-it-or-lose-it clause, this payout may not be owed at all.
Always check your employee handbook or written PTO policy before leaving a job.
Frequently asked questions
PTO payout is the cash payment an employer makes to an employee for unused, accrued paid time off — typically when the employee leaves the company. Instead of losing the time, the employee receives the equivalent dollar value of those hours. Whether a payout is owed, and how much, depends on state law and the employer’s written policy.
It depends on your state and your employer’s policy. There is no federal law requiring PTO payout. Some states — including California, Colorado, Montana, and Nebraska — treat accrued vacation or PTO as earned wages that must be paid out at termination regardless of any forfeiture policy. Other states leave the decision entirely to the employer’s written policy. And in several states, payout is required if the employer’s policy promises it, but not otherwise. Always check your employee handbook and your state’s labor agency.
Often yes, but it depends on how your employer and state classify the time. Many employers use a single combined PTO bank covering vacation, personal, and sick days. In states that mandate vacation payout — like California — the law treats PTO as vacation whether it’s labeled “PTO,” “vacation,” or “paid leave,” and the entire balance may be subject to payout requirements. Sick leave, however, is often treated differently: many states that require sick leave accrual do not require sick leave payout at termination unless it is part of a combined PTO bank.
The most common method is to divide the annual salary by 2,080 — the standard number of working hours in a year (40 hours/week × 52 weeks) — to get an effective hourly rate. Then multiply that rate by the number of unused PTO hours. For example, a $60,000 annual salary converts to roughly $28.85/hour. If you have 40 unused hours, the gross estimated payout is $28.85 × 40 = $1,154. Your employer may use a slightly different calculation depending on your actual scheduled hours per week.
Both can matter, and they interact. In states that mandate payout — such as California, Colorado, and Nebraska — state law overrides any employer forfeiture policy. Even if your handbook says unused PTO is forfeit at termination, the employer still owes you the payout in those states. In most other states, your employer’s written policy is the controlling document: if it promises a payout, the employer must honor it; if it clearly states PTO is forfeited, the employer generally can enforce that. When in doubt, read your policy documents and check your state’s department of labor.
PTO payouts are taxed as income — they are not exempt. The IRS classifies a lump-sum PTO payout as supplemental wages — the same category as bonuses and commissions. One common federal withholding approach for supplemental wages paid separately is a flat percentage rate (22% as of 2026 for amounts under $1 million), but employers may also use the aggregate method, which combines the payout with regular wages and withholds based on the employee’s W-4. Either way, Social Security (6.2%) and Medicare (1.45%) also apply, as does state income tax where applicable. The amount withheld is not your final tax bill — actual tax liability depends on your total income for the year, and you may receive a refund or owe more when you file.
PTO payout rules vary significantly by state. Information on this page is based on publicly available sources including the federal Fair Labor Standards Act (which does not require PTO payout), IRS Publication 15 (supplemental wage withholding guidance), and publicly available summaries of state labor laws. Because state laws change and employer policies vary, this page does not make determinations about individual obligations. Verify rules with your U.S. Department of Labor, your state’s labor agency, and your written employer policy.
Estimates and information only. This content is for general educational purposes and is not legal, tax, or payroll advice. PTO payout rules depend on your state law and your employer’s written policy — this calculator cannot determine whether you are legally owed a payout. Verify final-pay and PTO rules with your state’s labor agency, your written policy documents, and a qualified professional before making decisions. See our methodology and sources.