What is the average employer SUI rate in 2026?

Across all 50 states and DC, the average new-employer state unemployment insurance (SUI/SUTA) rate is 2.07%, applied to an average taxable wage base of about $22,573. New-employer rates range from 0.35% (South Carolina) to 4.1% (New York).

What federal payroll taxes do all US employers pay?

Every employer owes FICA — 6.2% Social Security on the first $176,100 of wages and 1.45% Medicare on all wages — plus 0.6% net FUTA on the first $7,000 per employee. State SUI is charged on top of these.

Which states have extra employer payroll taxes beyond SUI?

10 jurisdictions levy employer taxes beyond SUI — paid-leave and disability programs such as California's ETT, Colorado FAMLI, Massachusetts and Washington PFML, Oregon's Paid Leave and transit tax, DC Paid Family Leave, and New York's MCTMT. 9 states levy no income tax on wages, which raises take-home pay without changing the employer's payroll-tax bill.

Can I reuse this data?

Yes. The table is published under CC BY 4.0 — cite HiringMath with a link. New-employer rates and wage bases are reviewed annually; figures here are current for the tax year shown.

Reference · 2026

Employer payroll tax by state, 2026

Name: US Employer Payroll Tax by State (2026)
Creator: HiringMath
License: https://creativecommons.org/licenses/by/4.0/

A complete, sourced reference to what it costs to employ someone in every US state. For all 50 states and DC: the new-employer unemployment-insurance (SUI/SUTA) rate, the taxable wage base it applies to, any extra employer taxes, and the worker-classification rule that governs misclassification penalties. Free to cite under CC BY 4.0.

States + DC

2.07%

Avg new-employer SUI

SC 0.35%

Lowest rate

NY 4.1%

Highest rate

Employer payroll-tax rates and misclassification rules for all 50 states and DC, 2026
			Extra employer taxes	Misclassification rule
Alabama	2.7%	$8,000	—	Common-law control test; standard penalties for unpaid UI/workers' comp taxes.
Alaska	1%	$51,700	No state income tax; employees also pay a 0.5% SUI contribution.	ABC test for UI; back UI taxes and workers' comp liability.
Arizona	2%	$8,000	—	Common-law/economic reality test; penalties up to $1,000 per violation.
Arkansas	2%	$7,000	—	ABC test for UI; back UI taxes, interest, and civil penalties.
California	3.4%	$7,000	Employment Training Tax (ETT) 0.1% on first $7,000.	AB5 strict ABC test; willful misclassification fines $5,000–$25,000 per violation.
Colorado	1.7%	$27,200	FAMLI paid leave: employer pays 0.45% (10+ employees).	Common-law test; back wages, taxes, and potential civil suit.
Connecticut	2.2%	$26,100	PFML 0.5% employee-paid; employer administers.	ABC test; up to $300/day penalty under CT wage statutes.
Delaware	1%	$12,500	0.2% Operations & Technology supplemental tax on SUI wages.	ABC test; back UI taxes, interest, civil penalties.
District of Columbia	2.7%	$9,000	Paid Family Leave employer tax 0.75%; 0.2% admin assessment.	ABC test; double back-pay damages under Wage Theft Prevention Act.
Florida	2.7%	$7,000	No state income tax.	Economic reality test; back wages + equal liquidated damages (F.S. 448.24).
Georgia	2.7%	$9,500	—	ABC test for UI; back taxes and penalties apply.
Hawaii	2.4%	$62,000	Temporary Disability Insurance + prepaid health care coverage required.	ABC test; TDI and health-care coverage liability plus back taxes.
Idaho	1%	$55,300	—	Common-law control test; back UI taxes and civil liability.
Illinois	3.65%	$13,916	3.75% for NAICS 56/99.	ABC test; Employee Classification Act (construction) $1,500–$2,500/day for willful violations.
Indiana	2.5%	$9,500	—	ABC test; civil penalties up to $5,000 per misclassified worker.
Iowa	1%	$39,500	—	Common-law/economic reality test; back UI contributions, interest, penalties.
Kansas	2.7%	$14,000	—	ABC test; back UI taxes and wage-order violations.
Kentucky	2.7%	$11,700	—	Common-law test; workers' comp misclassification $100–$1,000/day + stop-work orders.
Louisiana	1.75%	$7,700	New employer rate is industry-average-based (~1.75% non-construction).	ABC test; back UI taxes, interest, civil fines.
Maine	2.54%	$12,000	—	ABC test; civil penalties up to $5,000/violation.
Maryland	2.6%	$8,500	Out-of-state construction employers pay 3.3%.	ABC test; Workplace Fraud Act (construction) $5,000 per worker first offense.
Massachusetts	2.13%	$15,000	PFML employer share 0.42% (25+ employees).	Strict ABC test; fines $5,000–$25,000 + 3x back wages + possible criminal charges.
Michigan	2.7%	$9,000	—	Economic reality test; back UI taxes and Wage Act penalties.
Minnesota	1%	$43,000	Industry-average-based; ~1% non-construction floor + 5% surcharge in 2025.	Common-law test; penalties $10,000+ per worker for willful violations.
Mississippi	1.2%	$14,000	Steps up: 1.0% yr1, 1.1% yr2, 1.2% yr3.	Common-law/ABC test; back UI taxes; no dedicated statute.
Missouri	2.38%	$9,500	—	Common-law test; back UI taxes and civil liability.
Montana	1%	$45,100	1% most industries; 2.0% construction.	Economic reality/ABC test; back UI taxes, interest, stop-work orders.
Nebraska	1.25%	$9,000	1.25% non-construction; 5.4% construction.	ABC test; back UI taxes and interest.
Nevada	3%	$41,800	No state income tax.	ABC test; NRS 616B workers' comp fines and back premium liability.
New Hampshire	1.7%	$14,000	No state income or sales tax.	ABC test; RSA 275-A penalties up to $2,500 per violation.
New Jersey	2.8%	$43,300	Employer TDI contribution 0.10%–0.75%.	Strict ABC test; tightening enforcement; civil penalties and back taxes.
New Mexico	1%	$33,200	Greater of 1% or industry-average.	ABC test; Worker Protection Act civil penalties.
New York	4.1%	$12,800	MTA payroll tax (MCTMT) 0.34%–0.895% in NYC metro; DBL required.	Common-law test; up to $2,500 per misclassified worker (Labor Law 861-d).
North Carolina	1%	$32,600	—	Common-law test; Employee Fair Classification Act (2017) civil penalties.
North Dakota	1.03%	$45,100	State-monopoly workers' comp (WSI); construction new employer 9.69%.	Economic reality test; back premium + 50% penalty surcharge.
Ohio	2.7%	$9,000	—	ABC test; back UI taxes, interest, civil penalties (ORC 4141.44).
Oklahoma	1.5%	$28,200	—	Economic reality test; back UI taxes and civil liability.
Oregon	2.4%	$54,300	Paid Leave Oregon employer 0.4% (25+); statewide transit tax 0.1%.	ABC test; back UI taxes; BOLI civil penalties.
Pennsylvania	3.82%	$10,000	Employee also pays 0.07% SUI.	Construction Workplace Misclassification Act $1,000–$2,500 per violation.
Rhode Island	1.21%	$29,800	Includes 0.21% Job Development Assessment.	ABC test; back UI taxes, TDI liability, civil penalties.
South Carolina	0.35%	$14,000	One of the lowest new-employer rates nationally (0.35%).	Economic reality test; back UI taxes, interest, civil liability.
South Dakota	1.2%	$15,000	No state income tax; 0.55% Investment Fee on top of SUI.	Common-law test; back UI taxes and interest; no dedicated statute.
Tennessee	2.7%	$7,000	No state income tax on wages.	ABC test; back UI taxes; no separate penalty statute.
Texas	2.7%	$9,000	No state income tax.	Common-law/economic reality test; TWC audit back taxes and penalties.
Utah	1%	$48,900	Industry-average-based; ~1% floor.	ABC test; back UI taxes, interest, penalties.
Vermont	1%	$14,800	—	ABC test; fines up to $10,000 per violation (21 V.S.A. §342).
Virginia	2.5%	$8,000	—	Worker Misclassification Act (2020) $1,000 per worker; criminal for repeat.
Washington	1%	$72,800	PFML employer ~0.262% (50+); WA Cares 0.58% employee-only.	ABC test; back UI, PFML taxes, civil penalties.
West Virginia	2.7%	$9,500	—	ABC test; back UI taxes and penalties; rising enforcement.
Wisconsin	3.25%	$14,000	—	Common-law test; back UI taxes + 50% penalty on underpaid contributions.
Wyoming	2.35%	$32,400	No state income tax; state-monopoly workers' comp (WSIF).	Common-law test; back premium liability; no dedicated statute.

Federal constants: IRS Publication 15 (Circular E), 2026. State SUI rates and wage bases: each state's unemployment-insurance agency. Misclassification rules: state labor departments and statutes. Last reviewed 2026-06-01.

How to read this table

The SUI rate is the new-employer state unemployment insurance rate — the rate a business pays before it builds a claims history. The wage base caps the wages that rate applies to, so a high rate on a low base can cost less per worker than a low rate on a high base. Extra employer taxes are state programs charged on top of SUI, mostly paid family/medical leave and disability funds. The misclassification rule is the legal test a state uses to decide whether a worker is an employee or a contractor, plus the penalty for getting it wrong.

To model a specific salary against these rates, use the hiring cost calculator, open any state page for a pre-filled example, or read the misclassification penalty guide.

Reference FAQ

What is the average employer SUI rate in 2026?: Across all 50 states and DC, the average new-employer state unemployment insurance (SUI/SUTA) rate is 2.07%, applied to an average taxable wage base of about $22,573. New-employer rates range from 0.35% (South Carolina) to 4.1% (New York).
What federal payroll taxes do all US employers pay?: Every employer owes FICA — 6.2% Social Security on the first $176,100 of wages and 1.45% Medicare on all wages — plus 0.6% net FUTA on the first $7,000 per employee. State SUI is charged on top of these.
Which states have extra employer payroll taxes beyond SUI?: 10 jurisdictions levy employer taxes beyond SUI — paid-leave and disability programs such as California's ETT, Colorado FAMLI, Massachusetts and Washington PFML, Oregon's Paid Leave and transit tax, DC Paid Family Leave, and New York's MCTMT. 9 states levy no income tax on wages, which raises take-home pay without changing the employer's payroll-tax bill.
Can I reuse this data?: Yes. The table is published under CC BY 4.0 — cite HiringMath with a link. New-employer rates and wage bases are reviewed annually; figures here are current for the tax year shown.

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