State Unemployment Insurance Tax Rates
State Unemployment insurance taxes (SUI), or SUTA taxes, are paid by employers and are used to pay benefits to employees who have lost their jobs. Employers are rated on their experience with UI, which affects the amount they must pay in UI taxes.
State Unemployment Insurance Tax, or State Unemployment Insurance Tax Rates, taxes are levied by states to finance unemployment benefits for laid-off workers. The tax rates are based on state-specific formulas and the health of each state’s UI fund. The state-specific formulas consider a variety of factors, including the average benefit payment for an employer and the taxable wage base. Other factors include the number of employees an employer has and the estimated number of layoffs that it expects to make this year.
While most companies know that UI taxes are part of their payroll, not many are aware of how the rates are calculated. The calculation involves a complex matrix of state and employer data, and requires the use of multiple mathematical algorithms to determine an employer’s estimated EMTC. The result of the matrix is an estimate of the dollar increase in a company’s UI tax rate next year. This estimate is based on the company’s history of past experience with UI claims and the state-specific UI tax schedule.
State Unemployment tax rates by state depend on an employer’s historical experience with the system and the state’s funding level for unemployment claims. This is a complex system, and the results are not easily predictable. Each year the UI department assigns tax rates to different groups of employers, with positive reserve ratio employers being assigned lower rates and negative reserve ratio employers being assigned higher rates. This ensures that companies pay their fair share of the cost of the system.
A new employer will initially pay the new employer tax rate. During the first calendar year of employment, the new employer will not earn an experience rating, and therefore the normal rate cannot be determined. After a full calendar year of employment, the new employer will have enough claim activity to receive an experience rating, and the normal rate will be determined using that information.
SUI Tax Rates 2024
States set a range of tax rates for new and established employers. Each employer is assigned a specific rate based on factors including their industry, how many former employees filed for UI benefits, and the employer’s experience level. Some states also split new employer rates into construction and non-construction rates.
Unlike federal UI taxes, which are reported on Form 940, state UI taxes are not withheld from employee paychecks. Instead, employers remit the taxes directly to their state’s UI agency. The remittances are used to pay current and back UI claims. In addition to UI taxes, employers must keep records of all remuneration paid to workers, including the total cash wage base, remuneration for overtime, and bonuses.
| State unemployment tax rates | |||
|---|---|---|---|
| State | SUTA new employer tax rate | Employer tax rate range | SUTA wage bases |
| Alabama | 2.70% | 0.65% – 6.8% (including employment security assessment of 0.06%) | $8,000 |
| Alaska | Standard rate 2.37% (0.51% employee share) | 1.51% – 5.91% | $46,800 |
| Arizona | 2.00% | 0.07% – 18.78% | $8,000 |
| Arkansas | 3.10% | 0.1% – 14% (including solvency surtax) | $10,000 |
| California | 3.40% | 1.5% – 6.2% (+ emergency 15% surcharge) | $7,000 |
| Colorado | 1.70% | 0.75% – 10.39% | $20,400 |
| Connecticut | 2.8% | 1.7% – 6.6% | $15,000 |
| Delaware | 1.80% | 0.1% – 5% | $14,500 |
| Florida | 2.70% | 0.1% – 5.4% | $7,000 |
| Georgia | 2.70% | 0.04% – 7.56% | $9,500 |
| Hawaii | 4.0% | 1.2% – 6.2% | $55,800 |
| Idaho | 1.071% (including the workforce rate tax of 0.03%) | 0.207% – 5.4% | $50,000 |
| Illinois | 3.95% | 0.03% – 8.1% (plus fund building of 0.55%) | $12,960 |
| Indiana | 2.50% | 0.5% – 7.4% | $9,500 |
| Iowa | 1.00% | 0.0% – 7% | $36,100 |
| Kansas | 2.70% | 0.17% – 6.4% | $14,000 |
| Kentucky | 2.70% | 0.3% – 9.0% | $10,800 |
| Louisiana | Varies | 0.09% – 6.2% | $7,700 |
| Maine | 2.19% | 0.22% – 5.69% | $12,000 |
| Maryland | 2.3% | 1.0% – 10.5% | $8,500 |
| Massachusetts | 1.43% | 0.56% – 8.62% | $15,000 |
| Michigan | 2.70% | 0.6% – 10.3% | $9,500 |
| Minnesota | Varies | Maximum of 8.9% (with a base tax rate of 0.10%) | $41,000 |
| Mississippi | 1.0% (1st year), 1.1% (2nd year), 1.2% (3rd year) | 0.0% – 5.4% | $14,000 |
| Missouri | 2.7% | 0.0% – 6.0% (does not include maximum rate surcharge or contribution rate adjustment) | $10,500 |
| Montana | Varies | 0.13% – 6.3% (includes AFT rate of 0.13% – 0.18%) | $40,900 |
| Nebraska | 1.25% | 0% – 5.4% | $9,000; $24,000 |
| Nevada | 2.95% | 0.25% – 5.4% | $40,100 |
| New Hampshire | 2.7% | 0.1% – 7.0% | $14,000 |
| New Jersey | 3.1% (including Workforce Development and Supplemental Workforce Funds); Employee rate of 0.425% (including the Workforce Development and Supplemental Workforce Funds) | 0.6% – 6.4% (employee rate of 0.425%) | $41,100 |
| New Mexico | 1.0% or the industry average rate, whichever is greater | 0.33% – 5.4% | $30,400 |
| New York | 3.13% | 0.6% – 7.9% (including RSF tax of 0.75%) | $12,300 |
| North Carolina | 1.00% | 0.06% – 5.76% | $30,000 |
| North Dakota | 1.13% (positive balance); 6.29% (negative balance) | 0.08% – 9.97% | $38,400 |
| Ohio | 2.70% | 0.3% – 9.8% | $9,000 |
| Oklahoma | 1.50% | 0.3% – 9.2% | $25,700 |
| Oregon | 2.1% | 0.7% – 5.4% | $51,600 |
| Pennsylvania | 3.822% | 1.419% – 10.3734% | $10,000 |
| Rhode Island | 1.09% (including the 0.21% Job Development Assessment) | 1.1% – 9.7% | $24,600; $26,100 |
| South Carolina | 0.45% (including the 0.06% contingency surcharge) | 0.06% – 5.46% (including the 0.06% contingency surcharge) | $14,000 |
| South Dakota | 1.20% (+ 0.55% investment fee) | 0% – 9.5% | $15,000 |
| Tennessee | 2.70% | 0.01% – 10% | $7,000 |
| Texas | 2.7% (or the industry average rate, whichever is greater) | 0.23% – 6.23% | $9,000 |
| Utah | Varies | 0.3% – 7.3% | $44,300 |
| Vermont | 1.0% (for most employers) | 0.4% – 8.4% | $13,500 |
| Virginia | 2.50% (plus add-ons) | 0.1% – 6.2% | $8,000 |
| Washington | Varies | 1.25% – 8.15% | $67,600 |
| West Virginia | 2.7% (for most employers) | Not available | $9,000 |
| Wisconsin | 3.05% for new employers with payroll < $500,000; 3.25% for new employers with payroll > $500,000 | 0% – 12% | $14,000 |
| Wyoming | Varies | 0.48% – 9.78% | $29,100 |
