Payroll · state unemployment tax · 2026
SUTA tax rate by state.
Look up the starting unemployment tax rate a new employer pays in any state, the range after experience rating, and the wage base it applies to, then estimate your first-year bill.
A reference table, not a rate notice
This page reproduces the U.S. Department of Labor's January 2026 summary of state unemployment insurance laws. DOL says that summary is not an official interpretation of state law. Your state agency's rate notice is the rate you owe. Nothing you enter leaves your browser.
Estimate first-year SUTA
Result
SUTA tax rate by state for a new employer, 2026
SUTA is state unemployment tax. Each state sets its own, and every state assigns a brand-new employer a starting rate until the business has enough payroll history to be rated on its own layoff experience. This table lists that starting rate for 53 jurisdictions (the 50 states, DC, Puerto Rico and the Virgin Islands), next to the lowest and highest rate the state can assign once a business is experience rated, and the taxable wage base the rate is applied to.
The rate is only half the cost. UI tax is the rate multiplied by the wages paid to each employee up to the state's taxable wage base, so a state with a low rate and a high base can cost more per worker than a state with a high rate and a low base.
How to read each column
- New-employer rate. The base rate the Department of Labor prints for a new employer. DOL's footnote says higher rates may apply depending on industry classification or other factors in state law. Where DOL prints "IndAvg", the starting rate is the industry average and is assigned per employer. 7 jurisdictions are in that group: Louisiana, Minnesota, Montana, New Mexico, Utah, Washington, Wyoming. For those rows the estimator cannot give you a number, and neither can any table, because the figure depends on your industry code.
- Lowest and highest experience rate. The range the state can assign to an experience-rated employer. DOL notes these ranges do not include surtaxes, penalties, surcharges or non-UI taxes, so your notice may show more than the maximum printed here.
- Taxable wage base. The most each employee's wages can be taxed in the calendar year. The federal base for FUTA is $7,000; most states are above it. See the wage base table for the ranked list.
Worked example: the same payroll in four states (hypothetical)
Take a new business with six employees who each earn $52,000 a year. At each state's new-employer rate and wage base, the first-year UI tax per employee and for the business works out as follows.
- Florida: 2.7% on the first $7,000 is $189.00 per employee, $1,134.00 in total.
- Georgia: 2.64% on the first $9,500 is $250.80 per employee, $1,504.80 in total.
- Pennsylvania: 3.822% on the first $10,000 is $382.20 per employee, $2,293.20 in total.
- New Jersey: 2.8% on the first $44,800 is $1,254.40 per employee, $7,526.40 in total.
New Jersey's rate is close to Florida's, yet the bill is about six and a half times larger because the base is about six and a half times larger. These figures are an illustration, not a quote.
Common mistakes
- Using the maximum rate as the new-employer rate. The maximum is the ceiling for experience-rated employers. A new employer starts at the new-employer rate unless the state assigns something else for the industry.
- Multiplying the rate by total payroll. Only wages up to the base are taxed. Multiplying by $52,000 instead of the base overstates Florida's tax by a factor of more than seven.
- Forgetting that the table is a January 2026 snapshot. States can change rates or bases at the start of a rate year, and DOL footnotes that some states use a July 1 to June 30 rate year. Your state's notice is the rate that binds you.
Who this is for, and what it leaves out
This page is for a founder or bookkeeper hiring a first employee, a payroll consultant comparing states for a remote hire, or anyone checking a payroll vendor's SUTA line against a government table. It does not cover state surtaxes or special assessments, employer-paid disability or paid-leave programs, the federal FUTA tax (see the FUTA credit reduction calculator), state income tax withholding, or workers' compensation insurance, which in some states uses class codes from licensed rating data that we do not reproduce.
Your real rate arrives on the rate notice your state UI agency sends after you register.
The full table
| State or territory | New-employer rate | Lowest experience rate | Highest experience rate | Taxable wage base |
|---|---|---|---|---|
| Alabama | 2.7% | 0.2% | 5.4% | $8,000 |
| Alaska | 1% | 1% | 5.4% | $54,200 |
| Arizona | 2% | 0.03% | 8.36% | $8,000 |
| Arkansas | 1.8% | 0.1% | 6% | $7,000 |
| California | 3.4% | 1.5% | 6.2% | $7,000 |
| Colorado | 1.53% | 0.56% | 7.34% | $30,600 |
| Connecticut | 1.9% | 0.1% | 10% | $27,000 |
| Delaware | 1% | 0.4% | 5.4% | $14,500 |
| District of Columbia | 2.7% | 1.9% | 7.4% | $9,000 |
| Florida | 2.7% | 0.1% | 5.4% | $7,000 |
| Georgia | 2.64% | 0.04% | 8.1% | $9,500 |
| Hawaii | 2.4% | 0% | 5.6% | $64,500 |
| Idaho | 1% | 0.208% | 5.4% | $58,300 |
| Illinois | 2.8% | 0.2% | 6.5% | $14,250 |
| Indiana | 2.5% | 0.5% | 7.4% | $9,500 |
| Iowa | 1% | 0% | 5.4% | $20,400 |
| Kansas | 1.75% | 0% | 6.95% | $15,100 |
| Kentucky | 2.7% | 0.3% | 9% | $12,000 |
| Louisiana | Industry average | 0.09% | 6% | $7,000 |
| Maine | 2.23% | 0% | 6.29% | $12,000 |
| Maryland | 2.6% | 0.3% | 7.5% | $8,500 |
| Massachusetts | 2.42% | 0.94% | 14.37% | $15,000 |
| Michigan | 2.7% | 0.06% | 10.3% | $9,000 ($9,500 for delinquent employers) |
| Minnesota | Industry average | 0.4% | 9.3% | $44,000 |
| Mississippi | 1% | 0% | 5.4% | $14,000 |
| Missouri | 2.376% | 0% | 6% | $9,000 |
| Montana | Industry average | 0% | 6.12% | $47,300 |
| Nebraska | 1.25% | 0% | 5.4% | $24,000 |
| Nevada | 2.95% | 0.25% | 5.4% | $43,700 |
| New Hampshire | 2.7% | 0.1% | 7% | $14,000 |
| New Jersey | 2.8% | 0.5% | 5.8% | $44,800 |
| New Mexico | Industry average | 0.33% | 5.4% | $34,800 |
| New York | 4.025% | 2.025% | 9.825% | $17,600 |
| North Carolina | 1% | 0.06% | 5.76% | $34,200 |
| North Dakota | 1% | 0.07% | 9.67% | $46,600 |
| Ohio | 2.7% | 0.4% | 10.1% | $9,000 |
| Oklahoma | 1.5% | 0.2% | 5.8% | $25,000 |
| Oregon | 2.4% | 0.9% | 5.4% | $56,700 |
| Pennsylvania | 3.822% | 0.75% | 8.95% | $10,000 |
| Puerto Rico | 2.8% | 1.2% | 5.4% | $7,000 |
| Rhode Island | 1% | 0.69% | 9.19% | $32,300 |
| South Carolina | 1% | 0% | 5.4% | $14,000 |
| South Dakota | 1.2% | 0% | 8.52% | $15,000 |
| Tennessee | 2.7% | 0.01% | 10% | $7,000 |
| Texas | 2.7% | 0.32% | 6.32% | $9,000 |
| Utah | Industry average | 0.2% | 7.2% | $50,700 |
| Vermont | 1% | 0.4% | 5.4% | $15,400 |
| Virginia | 2.5% | 0.1% | 6.2% | $8,000 |
| Virgin Islands | 4.04% | 2.43% | 5.4% | $32,100 |
| Washington | Industry average | 0% | 5.4% | $78,200 |
| West Virginia | 2.7% | 1.5% | 7.5% | $9,500 |
| Wisconsin | 2.5% | 0% | 10.7% | $14,000 |
| Wyoming | Industry average | 0.1% | 8.5% | $33,800 |
Frequently asked questions
What is the SUTA tax rate for a new employer?
It depends on the state. In the Department of Labor's January 2026 table the numeric new-employer rates run from 1% (10 jurisdictions, including Alaska, Delaware, Idaho) up to 4.04% (Virgin Islands). 7 jurisdictions use the industry average instead of a fixed number. Find your state in the table above.
Why does the table say "Industry average" for some states?
Louisiana, Minnesota, Montana, New Mexico, Utah, Washington, Wyoming are printed by the Department of Labor with "IndAvg" as the new-employer rate. The state assigns a starting rate based on the average for your industry, so the number is different for a restaurant and a software firm. Your state's rate notice has the real figure.
Is the new-employer SUTA rate applied to all of an employee's pay?
No. The rate is applied only to wages up to the state's taxable wage base for the calendar year. In Florida the base is $7,000, so a new employer at 2.70% pays at most $189.00 per employee. In New Jersey the base is $44,800.
Which states have the highest new-employer SUTA rate?
In this table the highest numeric rates are Virgin Islands at 4.04%, New York at 4.025%, Pennsylvania at 3.822%. A high rate with a low wage base can still cost less than a lower rate with a high base, so compare the dollar result in the estimator rather than the rate alone.
Do new employers pay SUTA and FUTA?
Generally yes, if they are covered by both. SUTA is the state tax in this table. FUTA is the federal tax, 6.0% on the first $7,000 with a 5.4% credit in most states, which leaves 0.6% (IRS). FUTA has its own page with a credit reduction calculator.
Does the new-employer rate change every year?
It can. The Department of Labor table is a snapshot of state law effective January 2026. States may revise rates, bases and rate years, and DOL notes that some states run a July 1 to June 30 rate year. Use the rate on your state agency notice for filing.
Where do I find my actual SUTA rate?
On the rate notice your state unemployment insurance agency sends after you register as an employer, or in the agency's online employer account. The Department of Labor's State UI laws page, linked in the sources, points to the state laws and agencies.
Does this table include surtaxes or other state payroll taxes?
No. The Department of Labor says its rate ranges do not include surtaxes, penalties, surcharges or non-UI taxes. Those, and employer-paid disability or paid-leave contributions, are separate lines on a state payroll account.
Sources
Retrieved October 20, 2026. Each link was fetched on that date. Figures on this page come from these pages and no others.
- U.S. Department of Labor, Significant Provisions of State Unemployment Insurance Laws, effective January 2026 — every rate and wage base in the table
- U.S. Department of Labor, State UI laws and the Comparison of State Unemployment Insurance Laws — where DOL says to find the full state-by-state comparison
- Washington Employment Security Department, average annual wage release — Washington wage base for 2025, 2026 and 2027
- IRS, FUTA credit reduction — federal rate of 6.0% on the first $7,000 and the 5.4% credit