Severance Tax & Financial Impact Calculator
See the real take-home value of your severance package — from taxes and benefits to monthly runway.
How This Works
Federal & State Taxes
Your severance is taxable income. We calculate estimated federal and state tax using 2026 brackets and your filing status. Note: This is a simplified estimate and does not account for all credits, deductions, or local taxes.
FICA (Social Security & Medicare)
Severance is subject to payroll taxes. Social Security is 6.2% up to the annual limit ($168,600 in 2026). Medicare is 1.45% on all income with no limit.
Lump Sum vs. Installment
Spreading severance over time (e.g., 2 years) can reduce your effective tax rate and keep you in lower brackets. The calculator estimates this impact for comparison.
COBRA & Health Insurance
COBRA lets you keep your employer health plan for up to 18 months but costs the full premium (your share + employer share + 2% admin). Marketplace plans via healthcare.gov may be cheaper, especially with tax credits.
*Disclaimer: This calculator provides illustrative estimates for educational purposes only. It does not constitute tax, legal, or financial advice. Tax calculations are simplified and do not account for all deductions, credits, state-specific rules, or local taxes. Consult a CPA or tax professional for advice specific to your situation. Full disclaimer