Annual Leave Lump-Sum Payout Calculator
How much is your unused federal annual leave worth? Enter your hours and current salary to estimate the gross payout, tax withholding, and estimated net using the OPM ÷ 2,087 divisor.
The one number most calculators skip
Find on your LES or agency HR portal. The 240-hr carryover ceiling does not cap your payout — final-year accruals are added on top (up to ~448 hrs for 15+ year employees).
Use your annual salary from your most recent SF-50 or LES — include locality pay. Exclude overtime, hazardous duty pay, and night differential.
Add prior wages for SS wage base check, state tax, or Additional Medicare.
Defaults to $0. Enter your estimated year-to-date earnings before the payout is processed.
Enter your state's rate (e.g. 5 for 5%). Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax — enter 0. This is an estimate; state supplemental rates vary.
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How the formula works (5 U.S.C. § 5551)
The lump-sum leave payment is governed by statute. Under 5 U.S.C. § 5551 and implementing regulations at 5 CFR Part 550, Subpart L, your payout equals:
The 2,087-hour divisor is fixed by statute — it represents 52 weeks × 40.136… hours (the OPM legislatively rounded work year). It does not change year to year. The rounding matters: $100,000 ÷ 2,087 = $47.9156…, which rounds to $47.92 — not $47.91. Multiplied by 240 hours, the difference is $0.06. Payroll systems round the hourly rate first; this calculator does the same.
“Annual Rate of Basic Pay” includes base GS pay plus locality pay (and special rate supplements if applicable). It excludes overtime, hazardous duty pay, night differential, Sunday premium, and retention incentives — these are not earned during projected leave.
FedTools 2026 worked example — verified to the cent
$100,000 salary · 240 hours · No prior wages · No state tax
| Line Item | Amount |
|---|---|
| Annual salary | $100,000.00 |
| Hourly rate (÷ 2,087, rounded to cent) | $47.92 |
| Leave hours | 240 |
| Gross payout | $11,500.80 |
| Federal withholding (22%) | −$2,530.18 |
| Social Security (6.2%) | −$713.05 |
| Medicare (1.45%) | −$166.76 |
| State tax | $0.00 |
| Net payout | $8,090.81 |
Annual leave carryover ceilings by employee category
The ceiling applies at the start of the leave year — it does not cap your lump-sum payout.
| Employee Category | Carryover Ceiling |
|---|---|
| Most GS/FERS employees (U.S.-based) | 240 hours (30 days) |
| Employees stationed overseas | 360 hours (45 days) |
| Senior Executive Service (SES, SL, ST) | 720 hours (90 days) |
Annual leave accrual rates by years of service
Final-year accruals are added to your carryover balance — both are paid out at separation. An employee retiring mid-year receives a pro-rated amount of the annual accrual.
| Years of Service | Accrual Rate | Max Annual Accrual |
|---|---|---|
| 0–2 years | 4 hrs/pay period | 104 hrs |
| 3–14 years | 6 hrs/pay period | 156 hrs |
| 15+ years | 8 hrs/pay period | 208 hrs |
Maximum theoretical payout (15+ years, standard GS, year-end retirement): 240 carryover + 208 final-year accrual = 448 hours. At GS-13 Step 5 Washington DC locality (≈ $140,000/yr), that is approximately $30,300 gross.
The January retirement timing advantage
Under 5 CFR Part 550, Subpart L, your payout is calculated as the pay you would have received had you remained employed through the expiration of the projected leave period. If a general pay raise takes effect on January 1 and your leave period projects across it, hours on or after that date are paid at the new rate.
This is why “retire in January” appears in every federal retirement guide. An employee with 300 hours of leave who retires in December projects their leave into January — some hours are automatically paid at the new rate. Retiring in early January means the entire balance is paid at the new rate.
How the lump sum is taxed — supplemental wage rules
The IRS classifies annual leave lump-sum payments as supplemental wages — not regular wages and not pension income. This classification is decisive for withholding:
- Federal income tax: 22% flat (IRS Pub 15, 2026 — mandatory for supplemental wages under $1 million in the calendar year). This is withholding, not a ceiling; your effective tax rate is determined by your full-year income on Form 1040.
- Social Security: 6.2% employee share, applied to wages up to the 2026 wage base of $184,500. If your salary alone already approaches $184,500, the SS withholding on your payout will be reduced or zero.
- Medicare: 1.45% employee share on the full payout — no wage base ceiling. An additional 0.9% applies if total year income exceeds $200,000 (single).
- State income tax: Most states tax lump-sum leave payments. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no broad income tax.
Phased retirement and special circumstances
Phased retirement: If you enter OPM's phased retirement program, your annual leave stays on the books — you do not receive a lump-sum payout when entering phased retirement. The payout occurs at full retirement when the phased retirement arrangement ends.
Within-grade increases (WGI): If a scheduled WGI would have taken effect during your projected leave period, the regulations entitle you to the next step's hourly rate for those hours. Payroll offices handle this calculation automatically. If you are unsure, enter the next step in the GS lookup or add the expected WGI to your direct salary input.
Law enforcement officers (LEOs): Law Enforcement Availability Pay (LEAP) is included in basic pay for lump-sum purposes under the OPM definition. If you receive LEAP, your salary already includes it — enter your full LEAP-inclusive salary via the direct input.