Free · all 50 states · 2026 rates
PTO Payout Calculator
Find out how much your unused PTO or vacation payout is worth, whether your state's PTO payout laws require payout, and when your employer must send your final paycheck.
Quick answer
Your PTO payout equals your hourly rate × unused PTO hours. For salaried workers, hourly rate = annual salary ÷ 2,080. For example, $80,000 a year with 120 unused hours is about $4,615 before taxes. Whether your employer must pay it depends on your state: California, Colorado, Illinois, Massachusetts, Montana, and Nebraska treat accrued PTO as earned wages that must be paid out at separation.
Frequently Asked Questions
Do employers have to pay out unused vacation time in California?
Yes. In California, accrued vacation time is considered earned wages. California law expressly prohibits "use-it-or-lose-it" policies. All earned, unused PTO must be paid out at your final rate of pay upon termination, regardless of the reason for leaving.
Will I get paid for my unused PTO when I quit?
It depends on your state. States like California, Colorado, Illinois, and Louisiana treat accrued PTO as earned wages — your employer is legally required to pay it out when you leave, regardless of company policy. Most other states (including Texas, Florida, and Georgia) allow employers to forfeit unused PTO if their written policy says so. Always check your employee handbook AND your state law — both apply.
Can my employer refuse to pay out my unused vacation days?
In states with mandatory payout laws (CA, CO, IL, LA, MA, MT, NE, ND), no — refusal is a wage theft violation. In at-will states with no payout law, yes — if your employer's written policy states PTO is forfeited at termination. "Use-it-or-lose-it" policies are legal in most states but explicitly illegal in California and Montana.
Is PTO payout taxed differently than regular wages?
No. PTO payout is taxed exactly like regular wages — subject to federal income tax, Social Security (6.2%), Medicare (1.45%), and your state income tax. Your employer will withhold taxes and include it on your W-2. There is no special tax rate for vacation payouts.
What if my employer has a "use-it-or-lose-it" PTO policy?
Use-it-or-lose-it policies are legal in most US states, meaning you can lose accrued PTO at year-end or at termination if you haven't used it. However, California and Montana completely prohibit these policies — all accrued PTO must be paid out. Illinois and North Dakota prohibit forfeiture at termination but allow year-end resets with advance notice.