What is the State Unemployment Insurance (SUI) tax?

State Unemployment Insurance (SUI) tax is a payroll tax paid by employers to fund unemployment benefits for workers who lose their jobs through no fault of their own. Each state sets its own tax rates and taxable wage bases. The tax is calculated on a per-employee basis up to the state's taxable wage base each calendar year.

How are SUI tax rates determined for employers?

SUI rates are determined through experience rating, which compares an employer's history of unemployment claims against their contributions to the state unemployment fund. New employers receive a standard rate set by the state until they establish sufficient experience (typically 2-3 years). Employers with few claims tend to receive lower rates, while those with more claims receive higher rates. States use either a benefit-ratio or reserve-ratio formula for this calculation.

What is the SUI taxable wage base?

The SUI taxable wage base is the maximum amount of each employee's annual wages subject to the SUI tax. Once an employee's earnings exceed the wage base in a calendar year, no additional SUI tax is owed for that employee for the rest of the year. As of 2026, wage bases range from $7,000 (the federal minimum, used by states like California, Florida, Tennessee, and Puerto Rico) to $78,200 (Washington state, the highest in the nation).

What is the new employer SUI rate?

The new employer SUI rate is the rate assigned to businesses that have not yet established an experience rating in a given state. This rate is set by each state and typically falls in the middle of the rate range. New employers use this rate until they accumulate enough contribution and claims history to qualify for experience-based rating, which usually requires 2-3 years of covered employment.

Can employers reduce their SUI tax rate?

Yes, employers can reduce their SUI rate by maintaining a low unemployment claims history, properly protesting unjustified claims, keeping accurate payroll records, and in some states making voluntary contributions to improve their experience rating. Working with an employment tax specialist can help identify cost-saving opportunities. Strategies include workforce stability programs, proper documentation of separations, and timely response to all claims correspondence.

Which state has the highest SUI taxable wage base in 2026?

Washington state has the highest SUI taxable wage base in 2026 at $78,200 per employee. Other states with notably high wage bases include Hawaii ($64,500), Alaska ($54,200), Idaho ($53,500), Oregon ($52,800), Utah ($47,000), North Dakota ($43,800), New Jersey ($43,300), Montana ($43,000), and Minnesota ($42,000). Higher wage bases mean employers pay SUI tax on a larger portion of each employee's wages.

ReVerify Consulting 2026 Tax Year

State Unemployment Insurance (SUI) Rate Calculator

Research SUI rates, wage bases, and annual cost estimates for all 50 states, DC, and Puerto Rico. Select a state below to view detailed tax information and calculate employer costs.

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Select two states to compare their SUI tax structures side by side. The lower-cost state for each metric is highlighted in green.

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State B

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Showing 53 jurisdictions

Code ↕	State ↕	Wage Base ↕	Min Rate ↕	Max Rate ↕	New Employer ↕	Est. Annual Cost*↕
AL	Alabama	$8,000	0.200%	5.400%	2.700%	$216.00
AK	Alaska	$54,200	1.000%	5.400%	1.500%	$813.00
AZ	Arizona	$8,000	0.080%	5.400%	2.000%	$160.00
AR	Arkansas	$7,000	0.300%	5.400%	2.900%	$203.00
CA	California	$7,000	1.500%	6.200%	3.400%	$238.00
CO	Colorado	$23,800	0.750%	5.400%	1.700%	$404.60
CT	Connecticut	$25,000	0.500%	5.400%	3.000%	$750.00
DE	Delaware	$10,500	0.300%	5.600%	1.800%	$189.00
DC	District of Columbia	$9,000	1.600%	7.000%	2.700%	$243.00
FL	Florida	$7,000	0.100%	5.400%	2.700%	$189.00
GA	Georgia	$9,500	0.040%	5.400%	2.700%	$256.50
HI	Hawaii	$64,500	0.200%	5.600%	2.400%	$1,548.00
ID	Idaho	$53,500	0.207%	5.400%	1.000%	$535.00
IL	Illinois	$13,590	0.525%	6.825%	3.950%	$536.81
IN	Indiana	$9,500	0.500%	5.600%	2.500%	$237.50
IA	Iowa	$38,200	0.000%	7.000%	1.000%	$382.00
KS	Kansas	$14,000	0.160%	5.400%	2.700%	$378.00
KY	Kentucky	$11,400	0.300%	5.400%	2.700%	$307.80
LA	Louisiana	$7,700	0.090%	6.200%	1.160%	$89.32
ME	Maine	$12,000	0.280%	5.460%	2.370%	$284.40
MD	Maryland	$8,500	0.300%	7.500%	2.600%	$221.00
MA	Massachusetts	$15,000	0.940%	14.370%	2.420%	$363.00
MI	Michigan	$9,500	0.060%	10.300%	2.700%	$256.50
MN	Minnesota	$42,000	0.100%	9.000%	1.000%	$420.00
MS	Mississippi	$14,000	0.200%	5.400%	2.700%	$378.00
MO	Missouri	$10,500	0.000%	5.400%	2.376%	$249.48
MT	Montana	$43,000	0.130%	6.120%	1.180%	$507.40
NE	Nebraska	$9,000	0.000%	5.400%	1.250%	$112.50
NV	Nevada	$40,600	0.250%	5.400%	2.950%	$1,197.70
NH	New Hampshire	$14,000	0.100%	7.500%	2.700%	$378.00
NJ	New Jersey	$43,300	0.400%	5.400%	2.683%	$1,161.52
NM	New Mexico	$31,700	0.330%	5.400%	2.000%	$634.00
NY	New York	$13,000	2.025%	9.825%	4.025%	$523.25
NC	North Carolina	$31,400	0.060%	5.760%	1.000%	$314.00
ND	North Dakota	$43,800	0.080%	9.690%	1.020%	$446.76
OH	Ohio	$9,000	0.300%	6.300%	2.700%	$243.00
OK	Oklahoma	$27,000	0.300%	5.500%	1.500%	$405.00
OR	Oregon	$52,800	0.700%	5.400%	2.400%	$1,267.20
PA	Pennsylvania	$10,000	1.279%	10.373%	3.822%	$382.20
RI	Rhode Island	$29,200	0.600%	7.000%	1.190%	$347.48
SC	South Carolina	$14,000	0.060%	5.460%	0.410%	$57.40
SD	South Dakota	$15,000	0.000%	9.500%	1.200%	$180.00
TN	Tennessee	$7,000	0.010%	10.000%	2.700%	$189.00
TX	Texas	$9,000	0.250%	6.250%	2.700%	$243.00
UT	Utah	$47,000	0.200%	7.200%	1.000%	$470.00
VT	Vermont	$16,100	0.400%	5.400%	1.000%	$161.00
VA	Virginia	$8,000	0.330%	6.430%	2.730%	$218.40
WA	Washington	$78,200	0.270%	6.020%	1.030%	$805.46
WV	West Virginia	$9,000	1.500%	7.500%	2.700%	$243.00
WI	Wisconsin	$14,000	0.000%	12.000%	2.500%	$350.00
WY	Wyoming	$30,900	0.180%	8.500%	1.840%	$568.56
PR	Puerto Rico	$7,000	1.000%	5.400%	2.800%	$196.00

* Estimated annual cost per employee at the new employer rate (wage base × rate). Actual costs depend on your experience rating. Click any column header to sort.

Disclaimer: This calculator provides estimates based on published 2026 SUI rate data. Actual rates depend on individual employer experience, industry classification, and state-specific adjustments. Data is sourced from official state workforce agency publications and may be subject to mid-year revisions. This tool is for informational purposes only and does not constitute tax advice. Consult a qualified employment tax professional for guidance specific to your situation. MasterTax™ is a trademark used under authorization.

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