Payroll Tax Cost by State 2026: SUTA Rates, Wage Bases, and Total Employer Cost
SUTA rates range from 0.54% to 4.10% with wage bases from $7,000 to $72,800. These differences create thousands of dollars in cost variation per employee per year.
National Employer Tax Overview
Every US employer pays three layers of payroll tax on top of the payroll service subscription fee. At a $50,000 salary, the total employer tax burden ranges from approximately $4,100 to $7,500 depending on your state.
FICA (Federal)
$3,825
6.2% Social Security + 1.45% Medicare on $50,000
FUTA (Federal)
$42
0.6% on first $7,000 of wages per employee
SUTA (State)
$38 - $2,983
Varies dramatically by state, rate, and wage base
Quick State Lookup
5 Most Expensive States (SUTA)
5 Least Expensive States (SUTA)
All 50 States + DC
Click column headers to sort. SUTA costs calculated at $50,000 annual salary using new employer rates.
| State | SUTA Rate | Wage Base | Annual SUTA ▼ | Additional Taxes |
|---|---|---|---|---|
| Hawaii | 3.00% | $56,700 | $1,500 | TDI 0.5% |
| Oregon | 2.60% | $52,800 | $1,300 | PFML 1.0% |
| Nevada | 2.95% | $40,600 | $1,198 | - |
| New Jersey | 2.80% | $42,300 | $1,184 | TDI 0.26%, FLI 0.09% |
| Alaska | 2.07% | $47,600 | $985 | - |
| New Mexico | 2.00% | $30,800 | $616 | - |
| Washington | 1.16% | $72,800 | $580 | PFML 0.74% |
| Wyoming | 1.68% | $30,900 | $519 | - |
| New York | 4.10% | $12,500 | $512 | PFL 0.373%, SDI |
| Idaho | 1.00% | $49,900 | $499 | - |
| Utah | 1.10% | $44,800 | $493 | - |
| Montana | 1.18% | $40,500 | $478 | - |
| Connecticut | 3.00% | $15,000 | $450 | PFML 0.5% |
| North Dakota | 1.02% | $43,800 | $447 | - |
| Illinois | 3.18% | $13,590 | $432 | - |
| Wisconsin | 3.05% | $14,000 | $427 | - |
| Minnesota | 1.00% | $42,000 | $420 | PFML 0.7% |
| Rhode Island | 1.39% | $29,200 | $406 | TDI 1.1% |
| Oklahoma | 1.50% | $27,000 | $405 | - |
| Pennsylvania | 3.82% | $10,000 | $382 | - |
| Kansas | 2.70% | $14,000 | $378 | - |
| Mississippi | 2.70% | $14,000 | $378 | - |
| New Hampshire | 2.70% | $14,000 | $378 | - |
| Iowa | 1.00% | $36,100 | $361 | - |
| Colorado | 1.70% | $20,400 | $347 | FAMLI 0.9% |
| Arkansas | 3.10% | $10,000 | $310 | - |
| Kentucky | 2.70% | $11,400 | $308 | - |
| North Carolina | 1.00% | $29,600 | $296 | - |
| Maine | 2.37% | $12,000 | $284 | PFML 1.0% |
| Massachusetts | 1.87% | $15,000 | $281 | PFML 0.75% |
| Georgia | 2.70% | $9,500 | $257 | - |
| Michigan | 2.70% | $9,500 | $257 | - |
| Missouri | 2.38% | $10,500 | $250 | - |
| Ohio | 2.70% | $9,000 | $243 | - |
| Texas | 2.70% | $9,000 | $243 | - |
| West Virginia | 2.70% | $9,000 | $243 | - |
| District of Columbia | 2.70% | $9,000 | $243 | PFML 0.62% |
| California | 3.40% | $7,000 | $238 | SDI 1.1% |
| Indiana | 2.50% | $9,500 | $238 | - |
| Virginia | 2.73% | $8,000 | $218 | - |
| Alabama | 2.70% | $8,000 | $216 | - |
| Maryland | 2.30% | $8,500 | $196 | PFML 0.9% |
| Delaware | 1.80% | $10,500 | $189 | - |
| Florida | 2.70% | $7,000 | $189 | - |
| Tennessee | 2.70% | $7,000 | $189 | - |
| South Dakota | 1.20% | $15,000 | $180 | - |
| Arizona | 2.00% | $8,000 | $160 | - |
| Vermont | 1.00% | $14,100 | $141 | PFML 0.55% |
| Nebraska | 1.25% | $9,000 | $113 | - |
| Louisiana | 1.16% | $7,700 | $89 | - |
| South Carolina | 0.54% | $14,000 | $76 | - |
States with Additional Payroll Taxes
Beyond SUTA, these states impose additional payroll taxes that add 0.5% to 1.5% to your employer tax burden. Multi-state employers must account for these when calculating total payroll cost.
California
SDI 1.1%
On top of 3.40% SUTA on first $7,000 of wages
Colorado
FAMLI 0.9%
On top of 1.70% SUTA on first $20,400 of wages
Connecticut
PFML 0.5%
On top of 3.00% SUTA on first $15,000 of wages
Hawaii
TDI 0.5%
On top of 3.00% SUTA on first $56,700 of wages
Maine
PFML 1.0%
On top of 2.37% SUTA on first $12,000 of wages
Maryland
PFML 0.9%
On top of 2.30% SUTA on first $8,500 of wages
Massachusetts
PFML 0.75%
On top of 1.87% SUTA on first $15,000 of wages
Minnesota
PFML 0.7%
On top of 1.00% SUTA on first $42,000 of wages
New Jersey
TDI 0.26%, FLI 0.09%
On top of 2.80% SUTA on first $42,300 of wages
New York
PFL 0.373%, SDI
On top of 4.10% SUTA on first $12,500 of wages
Oregon
PFML 1.0%
On top of 2.60% SUTA on first $52,800 of wages
Rhode Island
TDI 1.1%
On top of 1.39% SUTA on first $29,200 of wages
Vermont
PFML 0.55%
On top of 1.00% SUTA on first $14,100 of wages
Washington
PFML 0.74%
On top of 1.16% SUTA on first $72,800 of wages
District of Columbia
PFML 0.62%
On top of 2.70% SUTA on first $9,000 of wages
Multi-State Payroll Complexity
When employees work in different states, employers must register for payroll tax accounts in each state, withhold according to each state's rules, file returns on each state's schedule, and pay SUTA in each state where employees are physically working. This is true even for remote employees. If your business is in Texas but you have one remote employee in California, you need a California employer account, California SDI registration, and must follow California's specific payroll tax rules for that employee.
Each additional state adds $50 to $150 per year in payroll service fees (state registration and filing costs) plus the administrative burden of tracking multiple state tax deadlines. Most Essential and Full-Service payroll providers handle multi-state compliance automatically, but Basic tier plans often charge per state as an add-on.
For businesses with employees in 5+ states, multi-state complexity is one of the strongest reasons to use a Full-Service payroll provider rather than attempting DIY. The cost of a single state filing error (late payment penalties, incorrect withholding) typically exceeds the annual cost difference between Basic and Full-Service tiers.
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Our calculator includes state tax burden and multi-state fees in the total cost estimate.
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