State payroll taxes: 2026 rates and rules for every state
State payroll taxes start with unemployment tax (SUTA): 2026 wage bases range from $7,000 in California, Florida, Arkansas, Tennessee and Louisiana to $78,200 in Washington, and new employer rates from 1.0% to 4.1% in New York, according to state unemployment agencies and the US Department of Labor's July 2026 report (checked October 16, 2026).
On top of that, 41 states and DC tax wages, several run payroll-funded paid leave programs, and some cities add their own wage tax. Pick your state below for the full 2026 rules and a worked $50,000 example.
State payroll taxes are the taxes a state charges on wages: unemployment insurance (SUTA) paid by the employer, income tax the employer withholds from employees, and in some states paid leave or disability insurance contributions.
On this page
2026 state unemployment tax for every state
Every state charges employers unemployment tax (SUTA) on each employee's wages up to a taxable wage base. At the flat new employer rates, that works out to $112.50 per employee a year in Nebraska (1.25% of $9,000) up to $1,548 in Hawaii (2.40% of $64,500). Your rate changes once you have a claims history, usually after two or three years. The table below has every state's 2026 base and rates; each state name opens its full page.
| State | 2026 taxable wage base | New employer rate | Lowest rate | Highest rate |
|---|---|---|---|---|
| Alabama | $8,000 | 2.70% | 0.20% (DOL table) | 5.40% (DOL table) |
| Alaska | $54,200 | 1.00% employer plus 0.50% employee (all industries listed except public administration) | 1.00% employer | 5.40% employer |
| Arizona | $8,000 | 2.00% | 0.03% | 8.36% |
| Arkansas | $7,000 | 2.0% | 0.200% | 5.100% (deficit levels 6.100%, 8.100%, 10.100%) |
| California | $7,000 | 3.4% (for 2 to 3 years) | 1.5% (Schedule F+) | 6.2% (Schedule F+) |
| Colorado | $30,600 | 3.05% combined (1.53% beginning rate + 0.17% support + 1.35% surcharge) | 0.72% combined (0.56% + 0.06% support + 0.10% solvency) | 10.85% combined (7.34% + 0.81% support + 2.70% solvency) |
| Connecticut | $27,000 | 1.9% | 1.1% (0.1% charged rate + 1.0% fund solvency tax) | 9.9% (8.9% max charged rate for 2026 + 1.0% fund solvency tax) |
| Delaware | $14,500 | 1.0% | 0.3% | 5.4% |
| District of Columbia | $9,000 | 2.7% or the prior-year average employer rate, whichever is higher | 1.90% (DOL table) | 7.40% (DOL table) |
| Florida | $7,000 | 2.7% | 0.1% | 5.4% |
| Georgia | $9,500 | 2.70% total (2.64% contribution rate + 0.06% administrative assessment) | 0.04% (DOL sigpros, before assessment) | 8.10% (DOL sigpros, before assessment) |
| Hawaii | $64,500 | 2.40% | 0.00% (DOL table; state page lists maximum only) | 5.60% (Schedule C) |
| Idaho | $58,300 | 1.000% (0.970% UI + 0.030% workforce development) | 0.208% | 5.400% (deficit class 6) |
| Illinois | $14,250 | 3.35% (includes 0.55% fund building rate) | 0.75% | 7.05% |
| Indiana | $9,500 | 2.5% | 0.50% | 7.40% (9.40% if delinquent) |
| Iowa | $20,400 (down from $39,500 in 2025 under SF 607) | 1.0% (DOL table; secondary: Bloomberg Tax) | 0.00% (DOL table) | 5.4% |
| Kansas | $15,100 | 1.75% | 0% | 6.95% |
| Kentucky | $12,000 | 2.70% (at least 2.7% until 3 years of experience) | 0.00% (state guide, Schedule A); DOL shows 0.30% | 9.00% |
| Louisiana | $7,000 (DOL; down from $7,700 per Bloomberg Tax) | Industry average rate (not less than 1%, secondary: Bloomberg Tax) | 0.09% | 6.00% (DOL); Bloomberg Tax reports 6.2% for 2026 |
| Maine | $12,000 | 2.54% combined (2.23% UI + 0.14% CSSF + 0.17% UPAF) | 0.31% combined (0.00% UI + CSSF + UPAF) | 6.60% combined (6.29% UI + CSSF + UPAF) |
| Maryland | $8,500 | 2.60% (state page: new employer rate may range 1.0% to 2.6%) | 0.30% | 7.50% |
| Massachusetts | $15,000 | 2.42% (new employers registered less than 3 years) | 0.94% (DOL sigpros) | 14.37% (DOL sigpros) |
| Michigan | $9,000 ($9,500 for delinquent employers) | 2.7% | 0.06% (DOL sigpros) | 12.2% (DOL sigpros) |
| Minnesota | $44,000 | Industry average experience rate plus 0.40% base rate plus additional assessment, minimum 1% (Minn. Stat. 268.051 subd. 5); 51 industry rates ranging 1% to 8.9% for 2026 (secondary: Bloomberg Tax) | 0.40% (0.00% experience + 0.40% base) | 9.30% (8.90% experience + 0.40% base), before additional assessment |
| Mississippi | $14,000 (DOL) | 1.00% (DOL) | 0.00% (DOL) | 5.40% (DOL) |
| Missouri | $9,000 | 2.376% (includes contribution rate adjustment); nonprofit and government 1.00% | 0.00% | 6.00% before surcharges and CRA (Shared Work participants up to 9.0%) |
| Montana | $47,300 | By industry: 1.00% most industries (manufacturing, utilities and transportation, wholesale, retail, finance); services 1.10%; agriculture and mining 1.30%; unclassified 2.00%; plus 0.18% AFT | 0.00% (plus 0.13% AFT for classes 01 and 02) | 6.12% (plus AFT) |
| Nebraska | $9,000; $24,000 for category 20 (highest rate) employers | 1.25% | 0.00% | 5.40% |
| Nevada | $43,700 (state); DOL shows $45,400 | 2.95% plus 0.05% CEP (3.00% total) | 0.25% | 5.40% |
| New Hampshire | $14,000 | 2.7% statutory, less fund reduction; 1.7% effective in Q1 2026 after 1.0 point solvency reduction (secondary: Bloomberg Tax) | 0.10% (DOL) | 7.00% (DOL); Bloomberg Tax Q1 2026: negative-rated 3.3% to 7.5% including 0.5 point surcharge |
| New Jersey | $44,800 | 2.6825% UI + 0.1175% Workforce/Supplemental Workforce = 2.8% (plus employer TDI 0.5%) | ||
| New Mexico | $34,800 | Industry average rate (DOL); state page rate section did not render | 0.33% (DOL) | 5.40% (DOL); excess claims premium up to 1% can raise total to 6.4% (secondary: Bloomberg Tax) |
| New York | $17,600 (per DOL sigpros; state page does not show it) | 4.1% total (4.025% UI + 0.075% Re-employment Service Fund) | 2.025% (DOL sigpros, excludes RSF) | 9.825% (DOL sigpros, excludes RSF) |
| North Carolina | $34,200 | 1.0% | ||
| North Dakota | $46,600 | 1.00% (non-construction, positive-balance schedule); 6.07% shown in negative-balance column | 0.07% | 9.67% |
| Ohio | $9,000 | 2.7% (non-construction) | 0.40% (DOL sigpros) | 10.1% (DOL sigpros) |
| Oklahoma | $25,000 | 1.5% | 0.2% | 5.8% |
| Oregon | $56,700 | 2.4% | 0.9% (Schedule 3) | 5.4% (Schedule 3) |
| Pennsylvania | $10,000 | 3.822% (non-construction) | ||
| Rhode Island | $30,800 ($32,300 for employers at the highest rate) | 1.21% (includes 0.21% Job Development Assessment) | 0.9% (Schedule F, before JDA adjustment) | 9.4% (Schedule F, before JDA adjustment) |
| South Carolina | $14,000 | 1.06% total (rate class 30: 1.000% base + 0.060% DACA) | 0.06% total (class 1: 0.00% base + 0.06% DACA) | 5.46% total (class 20: 5.40% base + 0.06% DACA) |
| South Dakota | $15,000 | Year 1: 1.20% RA tax + 0.55% investment fee (1.75%); years 2 and 3: 1.00% + 0.55% if positive balance | 0.00% (DOL July 2026) | 8.52% (DOL July 2026) |
| Tennessee | $7,000 | 2.7% (all industries other than manufacturing; new manufacturing employers rated using NAICS sector 31 to 33 experience) | 0.01% (DOL July 2026) | 10.00% (DOL July 2026; rate year July 1 to June 30) |
| Texas | $9,000 | 2.70% | 0.32% | 6.32% |
| Utah | $50,700 | Industry average: basic rate equal to the two-year average benefit cost ratio of the employer's industry, 1% minimum; new out-of-state contractors get the maximum 7.1% | 0.1% | 7.1% |
| Vermont | $15,400 (effective Jan 1 2026, up from $14,800) | 1.00% (DOL July 2026) | 0.4% (DOL July 2026) | 5.4% (DOL July 2026; rate year July 1 to June 30) |
| Virginia | $8,000 (DOL sigpros; VEC page does not state it) | 2.5% base rate plus add-ons | 0.1% (base) | 6.2% (base) |
| Washington | $78,200 | Industry average rate (no flat rate) | 0.00% (DOL sigpros, experience portion) | 5.40% (DOL sigpros, experience portion) |
| West Virginia | $9,500 (state handbook: beginning in 2025) | 2.7% (state handbook Feb 2025); DOL July 2026 shows 2.50% | 1.40% (DOL July 2026) | 7.00% (DOL July 2026) |
| Wisconsin | $14,000 | 3.05% (taxable payroll under $500,000); 3.25% ($500,000 or more) | 0.00% total (payroll under $500,000); 0.05% total ($500,000 or more) | 12.00% total (10.70% basic + 1.30% solvency) |
| Wyoming | $33,800 | Industry base rate plus four additional rate factors (figures not published on fetched pages) | 0.10% (DOL July 2026) | 8.5% (highest base rate, DWS; also assigned to employers that report before finishing registration) |
Source: each state unemployment agency, linked on the state page. Checked October 2026. Rates exclude most surcharges; see each state page.
Surcharges, construction rates and 2027 notices are on each state page and in 2026 SUTA rates and wage bases by state.
What else states charge employers
- Income tax withholding. 41 states and DC tax wages. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not, so you withhold only federal tax there.
- Paid leave and disability programs. Payroll-funded programs run in states including California (SDI, 1.3% of employee wages), New York, New Jersey, Washington, Massachusetts, Oregon, Colorado and Minnesota, whose program started January 1, 2026. Maryland's contributions start January 1, 2027.
- Local taxes. Cities and counties in Pennsylvania, Ohio, Michigan, Indiana, Kentucky, Maryland, Missouri, New York, Oregon and Colorado add their own wage taxes. See the local pages below.
- Construction rates. Some states charge new construction employers a higher SUTA rate than other new employers; the state pages show both where the state publishes them.
For one $50,000 employee in Texas, employer payroll taxes come to $4,110 a year, or 8.22% of pay, worked through in payroll taxes: what employers and employees pay. California is the state to watch this year: the Department of Labor lists it as a potential 2026 FUTA credit reduction state at 1.5%, which would raise FUTA on each California employee from $42 to $147.
Payroll taxes by state, grouped by region
Each state page has the 2026 wage base, new employer rate, income tax withholding rules, paid leave programs, new hire reporting deadline, final pay rule and the agency links to register, plus the math for a $50,000 employee.
Northeast
- Connecticut payroll taxes: SUTA wage base $27,000.
- Maine payroll taxes: SUTA wage base $12,000.
- Massachusetts payroll taxes: SUTA wage base $15,000.
- New Hampshire payroll taxes: SUTA wage base $14,000, no state income tax on wages.
- New Jersey payroll taxes: SUTA wage base $44,800.
- New York payroll taxes: SUTA wage base $17,600.
- Pennsylvania payroll taxes: SUTA wage base $10,000.
- Rhode Island payroll taxes: SUTA wage base $30,800.
- Vermont payroll taxes: SUTA wage base $15,400.
Midwest
- Illinois payroll taxes: SUTA wage base $14,250.
- Indiana payroll taxes: SUTA wage base $9,500.
- Iowa payroll taxes: SUTA wage base $20,400.
- Kansas payroll taxes: SUTA wage base $15,100.
- Michigan payroll taxes: SUTA wage base $9,000.
- Minnesota payroll taxes: SUTA wage base $44,000.
- Missouri payroll taxes: SUTA wage base $9,000.
- Nebraska payroll taxes: SUTA wage base $9,000 ($24,000 for category 20, highest-rate employers).
- North Dakota payroll taxes: SUTA wage base $46,600.
- Ohio payroll taxes: SUTA wage base $9,000.
- South Dakota payroll taxes: SUTA wage base $15,000, no state income tax on wages.
- Wisconsin payroll taxes: SUTA wage base $14,000.
South
- Alabama payroll taxes: SUTA wage base $8,000.
- Arkansas payroll taxes: SUTA wage base $7,000.
- Delaware payroll taxes: SUTA wage base $14,500.
- District of Columbia payroll taxes: SUTA wage base $9,000.
- Florida payroll taxes: SUTA wage base $7,000, no state income tax on wages.
- Georgia payroll taxes: SUTA wage base $9,500.
- Kentucky payroll taxes: SUTA wage base $12,000.
- Louisiana payroll taxes: SUTA wage base $7,000.
- Maryland payroll taxes: SUTA wage base $8,500.
- Mississippi payroll taxes: SUTA wage base $14,000.
- North Carolina payroll taxes: SUTA wage base $34,200.
- Oklahoma payroll taxes: SUTA wage base $25,000.
- South Carolina payroll taxes: SUTA wage base $14,000.
- Tennessee payroll taxes: SUTA wage base $7,000, no state income tax on wages.
- Texas payroll taxes: SUTA wage base $9,000, no state income tax on wages.
- Virginia payroll taxes: SUTA wage base $8,000.
- West Virginia payroll taxes: SUTA wage base $9,500.
West
- Alaska payroll taxes: SUTA wage base $54,200, no state income tax on wages.
- Arizona payroll taxes: SUTA wage base $8,000.
- California payroll taxes: SUTA wage base $7,000.
- Colorado payroll taxes: SUTA wage base $30,600.
- Hawaii payroll taxes: SUTA wage base $64,500.
- Idaho payroll taxes: SUTA wage base $58,300.
- Montana payroll taxes: SUTA wage base $47,300.
- Nevada payroll taxes: SUTA wage base $43,700 per the state ($45,400 per the DOL), no state income tax on wages.
- New Mexico payroll taxes: SUTA wage base $34,800.
- Oregon payroll taxes: SUTA wage base $56,700.
- Utah payroll taxes: SUTA wage base $50,700.
- Washington payroll taxes: SUTA wage base $78,200, no state income tax on wages.
- Wyoming payroll taxes: SUTA wage base $33,800, no state income tax on wages.
City and county payroll taxes
Local taxes are where payroll software most often falls short: some providers charge extra for local filing and some do not file it at all. Check before you buy, using the add-on fees each provider publishes.
- Philadelphia wage tax: 3.735% for residents and 3.425% for nonresidents from July 1, 2026, with no wage cap.
- Pennsylvania local earned income tax and LST: a rate for each six-digit PSD code, plus a Local Services Tax of up to $52 a year.
- Ohio municipal income tax: Cleveland 2.5%, Cincinnati 1.8%, and a different rate in most other cities and villages.
- New York City and Yonkers: NYC resident withholding tables, a Yonkers resident surcharge of 16.75% of state withholding and a 0.50% nonresident tax.
- Denver occupational privilege tax: $5.75 a month withheld plus $4.00 a month from you for each employee earning $500 or more in Denver.
- Kansas City and St. Louis earnings tax: 1% in both cities, plus a 0.5% employer payroll expense tax in St. Louis.
- Michigan city income taxes: Detroit 2.4% for residents and 1.2% for nonresidents.
- Oregon transit and Portland area taxes: a 0.1% statewide transit tax withheld from employees, and 0.8237% paid by employers in the TriMet district.
- Kentucky local occupational license taxes: Lexington-Fayette at 2.25%, with city, county and school district layers.
- Indiana county income tax: 0.5% to 3.0% by county for 2026, based on where the employee lived on January 1.
- Maryland county income tax: all 23 counties and Baltimore City levy a local income tax that employers withhold.
- San Francisco payroll and gross receipts taxes.
Federal payroll taxes on top
- Social Security
- 6.2% eachemployer and employee, on the first $184,500
- Medicare
- 1.45% eachon all wages
- FUTA
- $42per employee a year after the full state credit
- 2027 wage base
- $192,300Social Security (SSA, Oct 14, 2026)
Every rate, limit and deposit rule for 2026 is in 2026 payroll tax rates. State minimum wages run from the federal $7.25, still in force in 20 states, to $17.13 in Washington and $18.40 in DC; see 2026 minimum wage by state. Put the federal, state and local lines together for one hire in the employee cost calculator:
Estimated yearly cost to employ this person
$0
Registering in a new state
- Register for state income tax withholding, unless the state has none.
- Register with the state unemployment agency to get a SUTA account number and your rate.
- Report each new hire to the state within 20 days under federal law, or sooner where the state sets a shorter deadline.
- Buy workers' comp coverage where the state requires it.
- Sign up for any state paid leave or disability program, and any local tax the work location triggers.
- Tell your payroll provider the new state and confirm what it charges for it.
Gusto is the only payroll provider in our research that says it opens new state accounts for business clients, for a fee that varies by state; Patriot and QuickBooks charge $12 a month for each extra state. More in how to set up payroll, the 2026 payroll compliance checklist, the payroll services hub and the payroll and hiring guides.
Frequently asked questions
What is SUTA?
SUTA is state unemployment tax: a payroll tax employers pay to their state on each employee's wages up to a taxable wage base. For 2026 the bases range from $7,000 in California, Florida, Arkansas, Tennessee and Louisiana to $78,200 in Washington, according to state unemployment agencies and the US Department of Labor (checked October 16, 2026). A few states, such as Alaska, also take a small share from employees.
Which states have no state income tax on wages?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not tax wages, so employers there withhold only federal income tax. They still charge state unemployment tax, and Washington runs a Paid Family and Medical Leave program funded through payroll.
How much are employer payroll taxes on a $50,000 employee?
In Texas, the employer pays $4,110 a year: $3,100 Social Security (6.2%), $725 Medicare (1.45%), $42 FUTA and $243 SUTA at the 2.70% new employer rate on the first $9,000, based on IRS, SSA and Texas Workforce Commission rates checked October 16, 2026. The state line changes with each state's rate and wage base.
Which state has the highest SUTA cost for a new employer?
At the flat 2026 new employer rates, Hawaii is the highest at $1,548 per employee a year (2.40% of a $64,500 wage base) and Nebraska the lowest at $112.50 (1.25% of $9,000), per state unemployment agencies checked October 16, 2026. New York has the highest new employer rate, 4.1%, on a $17,600 base.
Do cities charge payroll taxes too?
Yes, in some states. Philadelphia's wage tax is 3.735% for residents and 3.425% for nonresidents from July 1, 2026; Detroit taxes residents at 2.4%; Kansas City and St. Louis charge a 1% earnings tax; and Indiana counties charge 0.5% to 3.0%, per the official city, county and state revenue pages checked October 16, 2026.
Sources (12)
- US Department of Labor, ETA: Significant Provisions of State UI Laws, July 2026 (checked Oct 16, 2026)
- US Department of Labor, ETA: FUTA credit reductions (checked Oct 16, 2026)
- Texas Workforce Commission: Unemployment tax rates (checked Oct 16, 2026)
- California EDD: Rates and withholding (checked Oct 16, 2026)
- New York State DOL: Unemployment insurance rate information (checked Oct 16, 2026)
- Washington ESD: Employer tax rates (checked Oct 16, 2026)
- IRS: Topic 751, Social Security and Medicare withholding rates (checked Oct 16, 2026)
- IRS: Topic 759, Form 940 and FUTA (checked Oct 16, 2026)
- Social Security Administration: 2027 COLA fact sheet (checked Oct 16, 2026)
- US Department of Labor, WHD: State minimum wage laws (checked Oct 16, 2026)
- City of Philadelphia: Wage Tax for employers (checked Oct 16, 2026)
- Gusto: Let Gusto help you with state tax registration (checked Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.