United States · taxes
Is unemployment taxable? Tax and withholding calculator.
Estimate the tax on your unemployment benefits, compare it with the optional 10% federal withholding, and see how your state treats them.
An estimate, not tax advice
Use your marginal rate for the year; your real tax depends on all your income, credits and deductions. Nothing you enter leaves your browser.
Your benefits
Estimated tax
How it works
The IRS says unemployment compensation is taxable income that you generally must include when you file your federal return, and your state agency reports the total on Form 1099-G (Box 1, with any federal tax withheld in Box 4). You may ask the payer to withhold federal tax on Form W-4V; the form allows 10% and no other percentage. Instead of withholding, you can make quarterly estimated tax payments.
The estimate multiplies your benefits by the marginal rate you choose (the federal bracket rates are 10, 12, 22, 24, 32, 35 and 37%, see the IRS rates and brackets page). If the 10% withheld is less than that, the difference is what you would still owe. The state tax line is zero for states that do not tax unemployment or have no broad income tax, otherwise it uses the rate you enter.
State treatment. These states do not tax unemployment compensation: Alabama, California, New Jersey, Pennsylvania and Virginia (a subtraction on the state return). Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming have no individual income tax and Washington taxes only capital gains income (Tax Foundation). Other states generally tax unemployment benefits; check your state revenue department for the rate and any exclusion.
Sources and as-of date. IRS, Unemployment compensation and Form W-4V (Rev. January 2026); state sources linked above; all retrieved October 2026. Tax rules change each year.
Frequently asked questions
Is unemployment income taxable?
Yes for federal income tax. The IRS says you generally must include unemployment compensation in income, and your state reports it to you and the IRS on Form 1099-G.
How do I have taxes withheld from unemployment?
Complete Form W-4V and give it to the payer, normally your state unemployment agency, not the IRS. The form lets the payer withhold 10% of each payment and no other percentage. You can instead pay quarterly estimated tax.
Is 10% enough to cover the tax on my unemployment?
Only if your marginal federal rate is 10%. At 12% or higher the 10% withheld falls short, and the calculator shows the difference. Other income, credits and deductions change your final bill.
Which states do not tax unemployment benefits?
Alabama, California, New Jersey, Pennsylvania and Virginia exempt or subtract unemployment compensation under their own rules. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming have no individual income tax, and Washington taxes only capital gains.
What is Form 1099-G?
It is the statement your state agency sends showing the unemployment you received in Box 1 and any federal tax withheld in Box 4. If you did not receive one, the IRS says to find the amount of your payments on your state unemployment agency website.
What if I received too much and must repay?
This calculator does not model repayments or overpayments. Contact your state agency and a tax preparer, because the tax treatment depends on the year the benefit was paid and the year it is repaid.