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EOR Lens
United States

Employer of Record USA: what it costs, state by state

The United States is the one market we cover where the employer cost genuinely depends on which state the employee sits in. Federal payroll taxes are the same everywhere. State unemployment insurance is not, and a small group of states also charge the employer for paid family leave. Everything below is for the 2026 tax year and was checked against an official state source on 2026-09-05.

The federal floor, identical in every state

Social security
6.2% on the first $184,500 of pay
Medicare
1.45% with no cap (a further 0.9% is employee-paid above $200,000)
Federal unemployment
6.0% gross, 0.6% after the full state credit, on the first $7,000

Source: IRS Publication 15 (2026) and the Social Security Administration. Reviewed 2026-09-05.

How to read the state figures

The wage base is the slice of annual pay the state charges unemployment tax on, so a high rate on a low base can cost less than a low rate on a high one. The new-employer rate is what a company with no claims history pays; after about three years the account is re-rated on its own record. Where a state publishes a band or an industry average instead of one number, that is what the table says. We do not fill gaps with estimates.

All 50 states and DC

The last column is the employer tax bill on a $100,000 salary, worked out by the same calculator the state pages use: federal social security, Medicare and federal unemployment, plus the state charges we can verify. Where a state does not publish one starter unemployment rate, the cell says the figure excludes it rather than filling the gap with a midpoint we made up.

Alabama (AL)

Unemployment wage base
$8,000
New-employer rate
Not published as a flat rate; the schedule runs 0.20% to 6.80%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Alabama Department of Labor unemployment tax pages. Reviewed 2026-09-05.

Alaska (AK)

Unemployment wage base
$54,200
New-employer rate
Set by industry from the 2026 industry table
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$13.00, rising to $14.00 on 1 July 2026
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Alaska Department of Labor and Workforce Development. Reviewed 2026-09-05.

Arizona (AZ)

Unemployment wage base
$8,000
New-employer rate
2.00%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$15.15
Employer taxes on $100,000
$7,852

Arizona DES employer handbook and 2026 tax rate chart. Reviewed 2026-09-05.

Arkansas (AR)

Unemployment wage base
$7,000
New-employer rate
2.0%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$11.00
Employer taxes on $100,000
$7,832

Arkansas Division of Workforce Services. Reviewed 2026-09-05.

California (CA)

Unemployment wage base
$7,000
New-employer rate
3.4%, plus a 0.1% employment training tax
Employer paid leave
SDI and paid family leave run at 1.3% but are employee-paid
Minimum wage
$16.90
Employer taxes on $100,000
$7,937

California Employment Development Department. Reviewed 2026-09-05.

Colorado (CO)

Unemployment wage base
$30,600
New-employer rate
3.05% combined for non-construction employers
Employer paid leave
FAMLI 0.44% employer share; employers under 10 staff are exempt
Minimum wage
$15.16 ($12.14 tipped)
Employer taxes on $100,000
$9,065

Colorado Department of Labor and Employment; 7 CCR 1103-14. Reviewed 2026-09-05.

Connecticut (CT)

Unemployment wage base
$27,000
New-employer rate
1.9%
Employer paid leave
CT Paid Leave 0.5%, employee-paid only
Minimum wage
$16.94
Employer taxes on $100,000
$8,205

Connecticut Department of Labor. Reviewed 2026-09-05.

Delaware (DE)

Unemployment wage base
$14,500
New-employer rate
1.0%, plus a 0.2% assessment
Employer paid leave
Delaware Paid Leave 0.8% in total; the employer funds it and may recover up to half from the employee. Under 10 staff exempt, 10 to 24 staff parental leave only
Minimum wage
$15.00
Employer taxes on $100,000
$8,637

Delaware Division of Unemployment Insurance; Delaware Paid Leave employer guide. Reviewed 2026-09-05.

Florida (FL)

Unemployment wage base
$7,000
New-employer rate
2.7%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$14.00, rising to $15.00 on 30 September 2026
Employer taxes on $100,000
$7,881

Florida Department of Revenue reemployment tax pages. Reviewed 2026-09-05.

Georgia (GA)

Unemployment wage base
$9,500
New-employer rate
2.70%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25 in practice
Employer taxes on $100,000
$7,949

Georgia Department of Labor employer FAQs. Reviewed 2026-09-05.

Hawaii (HI)

Unemployment wage base
$64,500
New-employer rate
2.40%
Employer paid leave
Temporary disability insurance: the employer must provide cover and may recover up to half, capped at $7.50 a week
Minimum wage
$16.00
Employer taxes on $100,000
$9,240

Hawaii Department of Labor and Industrial Relations. Reviewed 2026-09-05.

Idaho (ID)

Unemployment wage base
$58,300
New-employer rate
1.000% standard rate
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,275

Idaho Department of Labor rate class array effective 1 January 2026. Reviewed 2026-09-05.

Illinois (IL)

Unemployment wage base
$14,250
New-employer rate
3.35% (3.45% for NAICS 56), including the 0.55% fund-building surtax
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$15.00
Employer taxes on $100,000
$8,169

Illinois Department of Employment Security 2026 rate publication. Reviewed 2026-09-05.

Indiana (IN)

Unemployment wage base
$9,500
New-employer rate
2.50%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,930

Indiana Department of Workforce Development. Reviewed 2026-09-05.

Iowa (IA)

Unemployment wage base
$20,400
New-employer rate
1.000% (5.400% construction)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,896

Iowa Workforce Development. Reviewed 2026-09-05.

Kansas (KS)

Unemployment wage base
$15,100
New-employer rate
1.75% (5.55% construction)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,956

Kansas HB 2570 (2024 Session Laws ch. 83). Reviewed 2026-09-05.

Kentucky (KY)

Unemployment wage base
$12,000
New-employer rate
2.7%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,016

Kentucky Office of Unemployment Insurance. Reviewed 2026-09-05.

Louisiana (LA)

Unemployment wage base
$7,000
New-employer rate
The industry average, with a 1% floor; experienced rates top out at 6.2%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Louisiana Workforce Commission 2026 rate table. Reviewed 2026-09-05.

Maine (ME)

Unemployment wage base
$12,000
New-employer rate
2.23%, plus the 0.14% competitive skills assessment
Employer paid leave
Maine PFML 1% in total at 15 or more staff, with the employer paying at least half. Under 15 staff the rate is 0.5% and is fully deductible from the employee
Minimum wage
$15.10
Employer taxes on $100,000
$8,497

Maine Department of Labor. Reviewed 2026-09-05.

Maryland (MD)

Unemployment wage base
$8,500
New-employer rate
1.0% to 2.6% depending on the table in force
Employer paid leave
FAMLI contributions start on 1 January 2027, so nothing is due during 2026
Minimum wage
$15.00
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Maryland Department of Labor. Reviewed 2026-09-05.

Massachusetts (MA)

Unemployment wage base
$15,000
New-employer rate
2.42% (6.08% construction)
Employer paid leave
PFML 0.88% in total; the employer pays 0.42% at 25 or more covered individuals and nothing below that
Minimum wage
$15.00
Employer taxes on $100,000
$8,483

Mass.gov employer PFML and UI rate pages. Reviewed 2026-09-05.

Michigan (MI)

Unemployment wage base
$9,000 ($9,500 for delinquent employers)
New-employer rate
2.7% (5.0% construction)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$13.73
Employer taxes on $100,000
$7,935

Michigan Unemployment Insurance Agency tax rate page. Reviewed 2026-09-05.

Minnesota (MN)

Unemployment wage base
$44,000
New-employer rate
The industry average for the employer's sector
Employer paid leave
Minnesota Paid Leave 0.88% in total (0.66% for small employers), with up to 0.44% deductible from the employee
Minimum wage
$11.41
Employer taxes on $100,000
$8,132 excluding variable unemployment tax

Minnesota Department of Employment and Economic Development. Reviewed 2026-09-05.

Mississippi (MS)

Unemployment wage base
$14,000
New-employer rate
1.00%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,832

Mississippi Department of Employment Security. Reviewed 2026-09-05.

Missouri (MO)

Unemployment wage base
$9,000
New-employer rate
2.376%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$15.00
Employer taxes on $100,000
$7,906

Missouri Department of Labor and Industrial Relations. Reviewed 2026-09-05.

Montana (MT)

Unemployment wage base
$47,300
New-employer rate
By industry: 1.00% for most sectors, 1.10% services, 2.00% construction
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$10.85
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Montana Department of Labor and Industry. Reviewed 2026-09-05.

Nebraska (NE)

Unemployment wage base
$9,000 ($24,000 for category 20 employers)
New-employer rate
Set by category, from 0.00% to 5.40%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$15.00
Employer taxes on $100,000
$7,742

Nebraska Department of Labor. Reviewed 2026-09-05.

Nevada (NV)

Unemployment wage base
$43,700 (rising to $45,400 in 2027)
New-employer rate
2.95% standard rate
Employer paid leave
No state scheme, but a modified business tax of 1.17% applies to quarterly wages above $50,000
Minimum wage
$12.00
Employer taxes on $100,000
$8,981

Nevada DETR; NRS 612.540. Reviewed 2026-09-05.

New Hampshire (NH)

Unemployment wage base
$14,000
New-employer rate
0.1% to 1.7% for positive-rated employers
Employer paid leave
Voluntary opt-in scheme only, with no payroll tax
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

New Hampshire Employment Security. Reviewed 2026-09-05.

New Jersey (NJ)

Unemployment wage base
$44,800
New-employer rate
2.6825% for the rate year starting 1 July 2026
Employer paid leave
Temporary disability costs the employer 0.10% to 0.75%; family leave is employee-paid
Minimum wage
$15.92
Employer taxes on $100,000
$8,894

New Jersey Department of Labor and Workforce Development. Reviewed 2026-09-05.

New Mexico (NM)

Unemployment wage base
$34,800
New-employer rate
The greater of the industry average or 1.00%, giving a 1.00% to 1.28% band
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$12.00
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

New Mexico Department of Workforce Solutions. Reviewed 2026-09-05.

New York (NY)

Unemployment wage base
$17,600
New-employer rate
4.1%
Employer paid leave
Paid family leave 0.432%, employee-paid; the employer must also provide statutory disability cover
Minimum wage
$17.00 downstate, $16.00 in the rest of the state
Employer taxes on $100,000
$8,414

New York State Department of Labor. Reviewed 2026-09-05.

North Carolina (NC)

Unemployment wage base
$34,200
New-employer rate
1.000%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,034

North Carolina Division of Employment Security. Reviewed 2026-09-05.

North Dakota (ND)

Unemployment wage base
$46,600
New-employer rate
1.00% for positive-balance employers
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,158

Job Service North Dakota. Reviewed 2026-09-05.

Ohio (OH)

Unemployment wage base
$9,500
New-employer rate
2.85% in total (2.7% new business rate plus a 0.15% fund fee)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$11.00
Employer taxes on $100,000
$7,963

Ohio Department of Job and Family Services 2026 rate details. Reviewed 2026-09-05.

Oklahoma (OK)

Unemployment wage base
$25,000
New-employer rate
1.5%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,067

Oklahoma Employment Security Commission 2026 employer numbers. Reviewed 2026-09-05.

Oregon (OR)

Unemployment wage base
$56,700
New-employer rate
2.4%
Employer paid leave
Paid Leave Oregon 1% in total; the employer pays 40% of it at 25 or more staff
Minimum wage
$16.30 standard rate from July 2026
Employer taxes on $100,000
$9,453

Oregon Employment Department. Reviewed 2026-09-05.

Pennsylvania (PA)

Unemployment wage base
$10,000
New-employer rate
3.5%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,042

Pennsylvania Department of Labor and Industry. Reviewed 2026-09-05.

Rhode Island (RI)

Unemployment wage base
$30,800 ($32,300 for employers at the top rate)
New-employer rate
1.00%, plus the 0.21% job development assessment
Employer paid leave
TDI and TCI 1.1%, employee-paid only
Minimum wage
$16.00
Employer taxes on $100,000
$8,065

Rhode Island Department of Labor and Training. Reviewed 2026-09-05.

South Carolina (SC)

Unemployment wage base
$14,000
New-employer rate
1.060% (1.000% plus a 0.060% administrative contingency assessment)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,840

South Carolina Department of Employment and Workforce. Reviewed 2026-09-05.

South Dakota (SD)

Unemployment wage base
$15,000
New-employer rate
1.20% in year one, plus a 0.55% investment fee
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$11.85
Employer taxes on $100,000
$7,955

South Dakota Department of Labor and Regulation. Reviewed 2026-09-05.

Tennessee (TN)

Unemployment wage base
$7,000
New-employer rate
2.7%
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Tennessee Department of Labor and Workforce Development. Reviewed 2026-09-05.

Texas (TX)

Unemployment wage base
$9,000
New-employer rate
The industry average for the employer's sector
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Texas Workforce Commission. Reviewed 2026-09-05.

Utah (UT)

Unemployment wage base
$50,700
New-employer rate
The industry average for the employer's sector
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Utah Department of Workforce Services. Reviewed 2026-09-05.

Vermont (VT)

Unemployment wage base
$15,400
New-employer rate
1% from 1 July 2026
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$14.42
Employer taxes on $100,000
$8,286

Vermont Department of Labor. Reviewed 2026-09-05.

Virginia (VA)

Unemployment wage base
$8,000
New-employer rate
2.5%
Employer paid leave
A scheme is enacted but benefits only start in December 2028, so there is no 2026 cost
Minimum wage
$12.77
Employer taxes on $100,000
$7,892

Virginia Employment Commission; Code of Virginia 60.2-526. Reviewed 2026-09-05. State data available; detailed page pending source verification.

Washington (WA)

Unemployment wage base
$78,200
New-employer rate
115% of the industry average, with a 1% minimum
Employer paid leave
PFML 1.13% in total, of which the employer pays 28.57%. WA Cares long-term care is a further 0.58%, employee-paid
Minimum wage
$17.13
Employer taxes on $100,000
$8,015 excluding variable unemployment tax

Washington Employment Security Department. Reviewed 2026-09-05.

West Virginia (WV)

Unemployment wage base
$9,500
New-employer rate
2.7% until an account has 36 months of history
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
$8.75
Employer taxes on $100,000
$7,949

W.Va. Code 21A-1A-28 and 21A-5-10; WorkForce West Virginia assigns each new account its rate on application. Reviewed 2026-09-05.

Wisconsin (WI)

Unemployment wage base
$14,000
New-employer rate
3.05% (3.25% where payroll is $500,000 or more)
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25
Employer taxes on $100,000
$8,119

Wisconsin Department of Workforce Development tax rates page. Reviewed 2026-09-05.

Wyoming (WY)

Unemployment wage base
$33,800
New-employer rate
Set by industry; there is no flat rate
Employer paid leave
No state scheme; the employer pays nothing
Minimum wage
Federal $7.25 in practice
Employer taxes on $100,000
$7,692 excluding variable unemployment tax

Wyoming Department of Workforce Services. Reviewed 2026-09-05.

District of Columbia (DC)

Unemployment wage base
$9,000
New-employer rate
2.7%
Employer paid leave
DC Paid Family Leave 0.75%, funded entirely by the employer
Minimum wage
$17.95, rising to $18.40 on 1 July 2026
Employer taxes on $100,000
$8,685

DC Department of Employment Services. Reviewed 2026-09-05.

What to ask a provider before hiring in the US

  • • Are you already registered in this state, and when can the first payroll run?
  • • Which unemployment rate is on my account, the new-employer rate or your own experience rate?
  • • Is workers compensation insurance included in the fee or invoiced separately?
  • • Who pays the state paid leave contribution where one exists?
  • • What happens to my costs if the employee moves to another state?

Workers compensation premiums vary by state and by job classification and are not published as a single rate, so we do not quote one. This page is general information, not legal or tax advice.

Related

FAQ

Yes, but less than people expect. Social security, Medicare and federal unemployment are identical everywhere. What moves is state unemployment insurance, because each state sets its own rate and its own pay ceiling, and in a handful of states a paid family leave contribution on top. The gap between the cheapest and the most expensive state is usually a few hundred dollars a year per employee, not a few thousand.

Because it is charged only on the first slice of pay. Florida taxes the first $7,000 and Washington the first $78,200, so an identical rate produces wildly different bills. For a salaried hire the wage base is usually exhausted within the first few months of the year, after which the charge stops.

The new-employer rate shown here. States assign it to any account with no claims history, and after roughly three years of filings the account is re-rated on its own experience. A few states publish an industry average instead of a single starter figure, and this table says so rather than picking a number.

Most international providers register in all 50 states plus DC, but registration and the first payroll in a new state can take a couple of weeks. Check that the provider is already registered where you are hiring before you sign, because the setup delay is the usual cause of a late first payday.

If you are hiring one or two people and have no US entity, an EOR is faster and cheaper. Once you are past roughly five to ten employees in one state, running your own entity with a payroll provider usually costs less per head. The break-even depends on the provider fee, not on the state.