2026 · Washington DC
Washington DC severance pay tax
Federal 22% plus Washington DC's regular withholding. But that's withholding, not your tax. This works out what you owe.
Washington DC layoff at a glance
| State tax on severance | Regular withholding tables |
| State income tax | Graduated, up to 10.8% |
| Unemployment weekly max | $444 for up to 26 weeks |
| Unemployment taxed by Washington DC? | No |
How Washington DC withholds on severance
Washington DC has no single flat supplemental rate, severance is withheld using the regular tables, so the amount tracks your bracket. On top of that, the federal government withholds a flat 22% (37% over $1 million) and FICA, 6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare.
Washington DC taxes income on a graduated scale topping out at 10.8%, so a large severance can be pushed into that top rate. If you also claim unemployment, Washington DC pays up to $444 a week for up to 26 weeks, and does not tax it. That's the Washington DC layoff picture in one place, the severance tax here, the unemployment on its own Washington DC page.
Worked example: $40,000 severance in Washington DC
A single filer, $40,000 severance paid separately, with $60,000 of other 2026 income:
| Federal withholding (22%) | −$8,800 |
| FICA (Social Security + Medicare) | −$3,060 |
| Washington DC withholding | −$3,400 |
| Net check | $24,740 |
| What it costs in tax | $14,610 |
Over-withheld by about $650, expect roughly that back as a refund at filing. The withholding is a fixed rate; your actual tax is your marginal rate on the severance stacked on your other income.
Stacking Washington DC unemployment on top
Washington DC sizes your weekly check off your highest-earning quarter, up to $444 a week, mid-pack nationally (36th of 51). There is no separate dependent add-on. Duration uniform 26.
| Weekly benefit range | $50 - $444 |
| How the amount is set | Off your highest-earning quarter |
| Maximum duration | 26 weeks (uniform 26) |
| Waiting week | Yes, one unpaid week |
| Dependent allowance | None |
| Taxed by Washington DC | No |
Stacked together, that $40,000 severance nets about $24,740 and Washington DC's unemployment can add up to $11,544 over 26 weeks, about 9 months of a $4,000 budget before you need a paycheck. File through DC Department of Employment Services (DOES); nail down the exact figure in the runway calculator.
Questions about Washington DC severance tax
Is severance taxed higher in Washington DC?
No. It's withheld at a flat 22% federally and by Washington DC's regular tables, but it's taxed as ordinary income at your normal rates. The worked example on this page shows the gap in dollars: on a $40,000 severance, $8,800 of federal tax is withheld up front while the severance actually costs about $14,610 in tax for that filer. Whichever direction the gap runs, it settles up at filing, a refund if too much was taken, a bill to plan for if too little.
Does Washington DC tax my severance?
Yes, Washington DC taxes severance as wages. Washington DC has no single flat supplemental rate, severance is withheld using the regular tables, so the amount tracks your bracket.
Will I get a refund or owe more?
It depends on your bracket. The flat 22% over-withholds for lower earners (refund) and under-withholds for those in the 32 to 37% brackets (set aside the difference). The crossover sits where your marginal rate passes 22%: below it, every severance dollar was over-withheld and comes back; above it, the flat rate quietly under-collects and the difference lands on your return as a balance due. For the $40,000 example on this page with $60,000 of other income, the calculator's verdict is printed under the worked example. Enter your numbers above to see which way it goes for you.
Your Washington DC layoff toolkit
- Washington DC unemployment benefits weekly amount and duration
- Runway calculator how long your money lasts
- Washington DC paycheck calculator take-home at your next job
- Washington DC 1099 tax if you go freelance
An estimate for the 2026 tax year. State supplemental figures from the verified dataset, last verified 2026-07-24. Nothing you enter is stored. Not tax advice.