Reference · 2026
Employer payroll tax by state, 2026
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 programs, and worker-classification context. Rates marked with an asterisk are industry-dependent planning defaults. Free to cite under CC BY 4.0.
51
States + DC
2.06%
Avg SUI default
AK 1%
Lowest default
NY 4.03%
Highest default
| Extra employer taxes | Misclassification rule | |||
|---|---|---|---|---|
| Alabama | 2.7% | $8,000 | — | Common-law control test; standard penalties for unpaid UI/workers' comp taxes. |
| Alaska | 1% | $54,200 | 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 tests may apply; back taxes and civil exposure are possible. |
| Arkansas | 1.8% | $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 uses a strict ABC framework for many workers; exceptions and claim-specific rules apply. |
| Colorado | 3.05%* | $30,600 | 2026 non-construction introductory UI rate is 3.05% including support and solvency charges; industry rates vary. FAMLI employer share is 0.45% for employers with 10+ employees. | Common-law test; back wages, taxes, and potential civil suit. |
| Connecticut | 1.9% | $27,000 | PFML 0.5% employee-paid; employer administers. | ABC framework may apply; wage-law and tax exposure depends on the claim. |
| Delaware | 1% | $14,500 | 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 | 2.64% | $9,500 | — | ABC test for UI; back taxes and penalties apply. |
| Hawaii | 2.4% | $64,500 | Temporary Disability Insurance + prepaid health care coverage required. | ABC test; TDI and health-care coverage liability plus back taxes. |
| Idaho | 1% | $58,300 | — | Common-law control test; back UI taxes and civil liability. |
| Illinois | 2.8% | $14,250 | Industry-specific rates can differ from the base new-employer rate. | ABC framework; construction work also has industry-specific classification rules. |
| Indiana | 2.5% | $9,500 | — | ABC framework; back taxes and civil exposure may apply. |
| Iowa | 1% | $20,400 | — | Common-law/economic reality test; back UI contributions, interest, penalties. |
| Kansas | 1.75% | $15,100 | — | ABC test; back UI taxes and wage-order violations. |
| Kentucky | 2.7% | $12,000 | — | Common-law framework; workers' compensation exposure and stop-work remedies may apply. |
| Louisiana | 1.75%* | $7,000 | New-employer rates are industry-average based; 1.75% is a non-construction planning default. | ABC test; back UI taxes, interest, civil fines. |
| Maine | 2.23% | $12,000 | — | ABC framework; back taxes and civil exposure may apply. |
| Maryland | 2.6% | $8,500 | Out-of-state construction employers pay 3.3%. | ABC framework; construction work has additional Workplace Fraud Act requirements. |
| Massachusetts | 2.42% | $15,000 | PFML employer share 0.42% (25+ employees). | Strict ABC framework; tax, wage, and other civil exposure may apply. |
| Michigan | 2.7% | $9,000 | — | Economic reality test; back UI taxes and Wage Act penalties. |
| Minnesota | 1%* | $44,000 | New-employer rates are industry-average based; 1% is a planning default. | Common-law framework; tax, wage, and other civil exposure may apply. |
| Mississippi | 1% | $14,000 | New-employer rates step up after the first year. | Common-law/ABC test; back UI taxes; no dedicated statute. |
| Missouri | 2.38% | $9,000 | — | Common-law test; back UI taxes and civil liability. |
| Montana | 1%* | $47,300 | New-employer rates are industry-average based; 1% is a planning default. | 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 | 2.95% | $43,700 | No state income tax. | ABC test; NRS 616B workers' comp fines and back premium liability. |
| New Hampshire | 2.7% | $14,000 | No state income or sales tax. | ABC framework; RSA 275-A includes classification and enforcement provisions. |
| New Jersey | 2.8% | $44,800 | Employer TDI contribution 0.10%–0.75%. | Strict ABC test; tightening enforcement; civil penalties and back taxes. |
| New Mexico | 1%* | $34,800 | New-employer rates are industry-average based; 1% is a planning default. | ABC test; Worker Protection Act civil penalties. |
| New York | 4.03% | $17,600 | MTA payroll tax (MCTMT) applies in the NYC metro; DBL coverage is required. | Common-law framework; industry-specific classification statutes may also apply. |
| North Carolina | 1% | $34,200 | — | Common-law test; Employee Fair Classification Act (2017) civil penalties. |
| North Dakota | 1% | $46,600 | State-monopoly workers comp (WSI); construction rates differ. | Economic-reality framework; workers' compensation premium exposure may apply. |
| Ohio | 2.7% | $9,000 | — | ABC test; back UI taxes, interest, civil penalties (ORC 4141.44). |
| Oklahoma | 1.5% | $25,000 | — | Economic reality test; back UI taxes and civil liability. |
| Oregon | 2.4% | $56,700 | Paid Leave Oregon employer share 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% | $30,800 | High-tax-group employers use a higher wage base. | ABC test; back UI taxes, TDI liability, civil penalties. |
| South Carolina | 1% | $14,000 | — | 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%* | $50,700 | New-employer rates are industry-average based; 1% is a planning default. | ABC test; back UI taxes, interest, penalties. |
| Vermont | 1% | $15,400 | — | ABC framework; state tax, wage, and civil exposure may apply. |
| Virginia | 2.5% | $8,000 | — | Worker Misclassification Act framework; escalating remedies may apply to repeat violations. |
| Washington | 1%* | $78,200 | UI rates are industry-average based; 1% is a planning default. 2026 PFML employer share is about 0.323% (50+); WA Cares is 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 | 2.5% | $14,000 | — | Common-law framework; back UI contributions and related exposure may apply. |
| Wyoming | 2.35%* | $33,800 | New-employer rates are industry-average based; 2.35% is a planning default. No state income tax; state-monopoly workers comp. | Common-law test; back premium liability; no dedicated statute. |
Federal constants: IRS Publication 15 (2026). State UI wage bases and base rates: U.S. DOL Significant Provisions of State UI Laws, January 2026. Industry defaults and extra programs are identified in the table. Last reviewed 2026-07-10.
How to read this table
The SUI rate is a base new-employer rate or an industry planning default, not a guaranteed assigned rate. 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 SUI planning default in 2026?
- Across all 50 states and DC, the average base rate or industry planning default in this table is 2.06%, applied to an average taxable wage base of about $22,989. New-employer rates range from 1% (Alaska) to 4.03% (New York).
- What federal payroll taxes do all US employers pay?
- Every employer owes FICA — 6.2% Social Security on the first $184,500 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. The figures are planning defaults, not substitutes for an employer's assigned state rate notice.
Calculate a real hire
Apply any state's rate to a salary and compare W-2 vs 1099.