By Tom Towson
Last updated: April 2026
As state workforce agencies strive to become more solvent, the economic landscape continues to shift, placing increased pressure on state unemployment insurance (SUI) trust funds. Following periods of elevated unemployment, many states have faced the challenge of replenishing these funds, which are crucial for providing benefits to eligible workers who have lost their jobs often through no fault of their own. This effort to achieve greater solvency often leads to adjustments in the SUI tax rates for employers. These agencies are actively implementing strategies, such as legislative reforms, proactive debt management, and careful monitoring of economic indicators, to help ensure the long-term sustainability of their SUI programs. This focus on solvency is a direct response to the need for greater fiscal responsibility and preparedness for future economic downturns.
It is prudent for employers to monitor how this stress might impact their federal (FUTA) and state unemployment insurance (SUI) tax rates. This regularly updated resource is intended to help provide employers insights into the condition of the unemployment insurance financing system and the potential impact to rates in 2026 and beyond.
Before addressing the condition of the SUI financing system, 2026 FUTA tax rates are top of mind for employers as well. States that have outstanding federal loans (pursuant to Title XII of the Social Security Act) on January 1st for at least two consecutive years and on November 10, 2026, are subject to a 0.30% reduction in their FUTA credit reduction (i.e., an increase of 0.30% in its FUTA tax rate).*
The U.S. Department of Labor issued its analysis of FUTA credit reductions for 2026.** The analysis identifies two jurisdictions potentially subject to a FUTA credit reduction in 2026, summarized as follows:
The above total FUTA tax rate for California (i.e., the net 0.60% base rate plus the FUTA credit reduction) does not include a potential “BCR Add-on” of 3.80%.** Reason being, the BCR Add-on has historically been waived by the U.S. Department of Labor. States may request a waiver of the BCR Add-on by July 1, 2026. A decision on the BCR Add-on for 2026 would likely come in October or November of 2026. If the add-on is not waived, the FUTA tax rate for employers in California is estimated to be 5.90%.
Advances to State Unemployment Trust Funds*** (Title XII of the Social Security Act)
The Average High Cost Multiple (AHCM) is a standard measure of the solvency of the SUI financing system using a primary factor, a state’s trust fund balance at a point in time. State trust funds are used to pay unemployment benefits. An AHCM multiple of 1.00 indicates a state trust fund is deemed sufficiently solvent and able to pay one year of benefits associated with an average recessionary period. As of January 1, 2025, 35 states were not considered adequately funded under this measure, compared to 34 as of January 1, 2024.****
Average High Cost Multiple (AHCM) (as of January 1, 2025)
A logical starting point for addressing the outlook for 2026 SUI tax rates is state unemployment trust fund balances; a primary factor in developing SUI tax rates.
As depicted in the following graph, net trust fund balances (trust fund balance net of federal Title XII advances) were negative $39.46 billion at the end of Q1 2011, as a result of the Great Recession, compared to negative $27.12 billion at the end of Q1 2021, as a result of the COVID-19 pandemic (i.e., $12.34 billion more solvent). By the end of Q1 2022, net trust fund balances rebounded and were positive for the first time since the COVID-19 pandemic. By the end of Q4 2025, net trust fund balances were positive $53.83 billion.**** There is still a long way to go before trust funds are at levels experienced just prior to the COVID-19 pandemic but have exceeded levels experienced just prior to the Great Recession.
Historical Net Trust Fund Balances***** (Q1 2007 to Q4 2025)
Net trust fund balances were substantially higher pre-COVID than they were pre-Great Recession. Because of this and other factors (e.g., the COVID pandemic did not last as long as the Great Recession), net trust fund balances did not reach the negative levels experienced during the Great Recession.
The following graph illustrates net trust fund balances by state as of December 31, 2025.*****
Net Trust Fund Balances by State (descending order by state)
As state trust funds are depleted during a period of high or increased levels of unemployment, SUI tax rates have historically increased as well. However, the correlation is not immediate. There is typically a lag between when an economic downturn impacts SUI tax rates. This is because rating calculations typically take into consideration more than just a single year of experience and look back to historical experience in the development of rates. And since rates are issued annually, a full year can pass before rates are next adjusted.
As illustrated in the below graph, as net trust fund balances began to decline in 2009 as a result of the Great Recession, the average SUI tax rate in the U.S. did not hit its peak until 2012. After that peak, average rates declined for eight consecutive years through 2020. After 2020, average SUI tax rates in the U.S. leveled off.
Correlation of Historical Average SUI Tax Rates to Net Trust Fund Balances***** (Q1 2011 to Q4 2024)
The depletion of state trust funds can have negative implications not only to future SUI tax rates but also the amount of wages subject to those tax rates. Employers pay SUI tax on wages earned and paid to each employee within a calendar year up to a specified amount, known as the annual taxable wage base. Some states correlate annual taxable wage base adjustments to state trust fund balances.
Over the past 15 years (2012 to 2026), taxable wage bases have increased by an average of 2.5% each year.
During the height of the Great Recession (from 2008 to 2010), the two year average annual increase was 4.8%.
From 2023 to 2024, taxable wage bases increased by an average of 4.4%.
From 2024 to 2025, taxable wage bases increased by an average of 3.1%.
From 2025 to 2026, taxable wage bases increased by an average of 1.9%.******
The following table provides historical taxable wage base trends.******
Annual SUI Taxable Wage Bases
The following table provides 2026 annual taxable wage bases by state (based on best available information)******:
Annual Taxable Wage Bases (2025 and 2026)
(1) The higher wage base only applies to delinquent employers or those assigned the maximum rate A - Actual wage base, assuming no law change. E - Best estimate, assuming no law change.
The following contains examples of actions taken by states that could impact SUI tax rates in 2026 and beyond. These state summaries are for informational purposes only and were obtained from third-party sources considered to be reliable. Please see the state legislation and related materials for specific guidance.
Alaska Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, a flat tax rate of 1.00% is assigned to new employers. The employee tax is 0.50%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $54,200 paid to each employee, up from $51,700 in 2025.
Arizona Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, rates for positive reserve ratio employers will range from 0.03% to 4.03%. An employer with a reserve ratio of zero pays at a rate of 4.18%. Negative ratio employers will pay rates ranging from 4.41% to 8.36%. New employers will continue to pay 2.0%.
The taxable wage base remains $8,000 for 2026.
Arkansas SB 560
The legislation overhauls the state's unemployment insurance system by reducing the base contribution rate for employers from 1.9% to 1.8%, while doubling the administrative assessment rate from 0.1% to 0.2% effective January 1, 2026. The legislation also introduces stricter penalties for unemployment insurance fraud and mandates quarterly reporting on fund usage, ensuring transparency and accountability in the system's administration.
Arkansas Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, contribution rates in Arkansas will range from 0.2% to 5.1% and the new employer rate will be 2.0%. Deficit employer rates will be 6.1%, 8.1%, or 10.1%. The stabilization rate is 0.2%.
The taxable wage base remains $7,000 for 2026.
California Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Schedule F+, with rates ranging from 1.5% to 5.9% for positive-balance employers (including zero reserve ratio) and 6.2% for all negative-balance employers, continues in effect in California for calendar year 2026. New employers continue to pay 3.4% in 2026 as well. There is also a 0.1% extra Employment Training Tax for positive-balance employers, which is deposited in the Employment and Training Fund. In addition, voluntary contributions are not permitted in 2026.
Colorado Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Contribution rates in Colorado for 2026 will be set by the column providing for reserve ratios from “0.000 to 0.004.” Standard premium rates in 2026 range from 0.56% to 3.13% for positive employers and from 4.02% to 7.34% for negative employers, with unrated employers paying 1.53%. Support surcharge rates for 2026 range from 0.06% to 0.35% for positive employers and from 0.45% to 0.81% for negative employers, with unrated employers paying 0.17%. Solvency surcharge rates in 2026 range from 0.1% to 1.1% for positive employers and from 1.425% to 2.7% for negative employers, with unrated employers paying 1.350%. Added together, the base rate, support rate, and the solvency surcharge rate provide the total combined rate for employers in 2026. The combined rates for new employers in 2026 are as follows: 3.05%, nonconstruction; 3.05%, general construction; 3.05%, trades; heavy construction, 6.285%; and 0.2%, political subdivisions.
Effective January 1, 2026, employers will pay unemployment taxes on the first $30,600 paid to each employee, up from $27,200 in 2025.
Colorado SB 20-207
The legislation incrementally increases Colorado's unemployment taxable wage base to $30,600 by calendar year 2026. The wage base increased to $20,400 in 2023 (from $17,000 in 2022), $23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. Each year thereafter, the wage base will be adjusted by the change in average weekly earnings.
Connecticut Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, the new employer rate will decrease from 2.2% to 1.9%, the state’s minimum charged rate will be 0.1% and its maximum charged rate will be 10.0%. Note that in order to minimize the short-term impact of the taxable wage base increase, charged rates in calendar year 2026 will be reduced by 1.125%. As such, the state’s maximum charged rate for calendar year 2026 will be reduced to 8.9%. The state’s fund solvency tax rate is 1.0% for 2026 and the minimum and maximum contribution rates for 2026 will be 1.1% and 9.9% (including the fund solvency rate), respectively.
Effective January 1, 2025, employers will pay unemployment taxes on the first $27,000 paid to each employee, up from $26,100 in 2025.
Connecticut HB 6633 and SB 210
In an effort to improve Connecticut’s Unemployment Insurance (UI) Trust Fund solvency, the legislature passed two bills to implement reforms that were achieved through a collaborative effort of business and labor. Changes to the tax and benefit system, plus the inclusion of indexing various tax and benefits measures, will promote long term UI Trust Fund solvency; reduce employer costs; build in cost predictability to support employer fiscal planning; and stabilize UI benefit payments to unemployed workers.
Delaware HB 433
Delaware has enacted legislation that will increase the taxable wage base as follows: $12,500 for 2025, $14,500 for 2026, and $16,500 for 2027 and thereafter.
The bill also establishes two possible Assessment Rate Schedules, A & B, for rate years 2025 and 2026 with rates ranging from 0.3% - 5.4% and 0.4% to 5.4%, respectively.
In addition, the bill revises the experience rating methodology for assigning unemployment assessment rates to employers under the Unemployment Insurance Code in Delaware, replacing the current benefit wage ratio methodology with the benefit ratio methodology used by 19 other states. The change in methodology will become effective beginning in 2027. The bill also establishes new Benefit Ratio Assessment Rate Tables A-H which will go into effect with the 2027 rate year with minimum rates ranging from 0.2% to 1.21% depending on the table to a maximum rate of 5.4%.
District of Columbia Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Schedule VI remains in effect for 2026. A 0.2% Administrative Funding Assessment is included in the total rate. The contributions for this assessment are calculated as a separate item on the quarterly contribution report. Rates range from 2.10% to 7.60% (including the Administrative Funding Assessment).
The taxable wage base remains $9,000 for 2026.
Georgia Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The Base Rate Adjustment Factor remained 50%, and the rates remained the same. Included in the total rate is the 0.06% Administrative Assessment, if applicable, which is paid by all but the minimum rated, maximum rated and non-profit or government agency employers. The contributions for this rate are calculated as a separate item on the quarterly contribution report. The rates will range between 0.04% and 8.10%.
The taxable wage base remains $9,500 for 2026.
Georgia SB 160
The bill reinstates the 0.06% administrative assessment which will be in effect for all experience rated employers. This assessment applies to the time frame of January 1, 2024 through December 31, 2026. It is set to expire as of January 1, 2027. The administrative assessment does not apply to reimbursing employers and those assigned a minimum or maximum rate. The new employer rate has been reduced to 2.64% to account for the assessment, resulting in a total rate of 2.70% for experience based employers. The total new employer rate for non-profit employers will be 2.64%.
Hawaii Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, Schedule C of the rate table will be in effect in Hawaii for UI purposes. Contribution rates for positive reserve ratio employers range from 0.0% to 2.4% and contribution rates for negative reserve ratio employers range from 2.8% to 5.6%. The Employment Training Assessment remains at 0.01%. New employers pay 2.4% in 2026.
Effective January 1, 2026, employers will pay unemployment taxes on the first $64,500 paid to each employee, up from $62,000 in 2025.
Hawaii HB 2471
Hawaii’s Employment Security Law, as it relates to the adequate reserve fund, has been amended. Effective for the calendar years 2023 through 2030, "adequate reserve fund" means an amount that is equal to the amount derived by multiplying the benefit cost rate that is the highest during the 10-year period ending on November 30 of each year by the total remuneration paid by all employers, with respect to all employment for which contributions are payable during the last four calendar quarters ending on June 30 of the same year, as reported on contribution reports filed on or before October 31 of the same year, but does not include the benefit cost rate from June 2020 through August 2021.
Hawaii HB 477
The legislation acts to terminate Hawaii’s joint account (common rating) program. Previously, Hawaii allowed two or more "related" employing units to apply for a joint account for experience rating purposes. This "common rating" allowed companies with shared ownership to combine their employment history to potentially secure a more favorable unemployment tax rate.
Program Phase-Out: The bill repeals the provisions that allowed for the creation of new joint accounts and mandates the termination of existing ones.
Impact on Employers: Beginning January 1, 2026, employers will no longer be able to form a joint account and each legal entity will receive its own contribution rate based on its specific reserve balance and taxable payroll.
Reasoning: The Department of Labor and Industrial Relations (DLIR) pushed for this change to simplify tax administration and ensure that each legal entity is held accountable for its own "experience" (layoff history). This prevents larger corporate groups from using complex structures to shield certain entities from higher tax rates.
Illinois Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For calendar year 2026, the adjusted state experience factor is 102% and the benefit conversion factor remains at 138.4%. Total rates range from 0.750% to 7.050%, including the 0.55% fund building factor in effect for 2026. An employer whose contribution rate is 5.40% or higher and whose total quarterly wages are less than $50,000 pays contributions at 5.40% in that quarter. New employers pay 3.350% for 2026, except new employers in NAICS-rated sector 56.
Effective January 1, 2026, employers will pay unemployment taxes on the first $14,250 paid to each employee, up from $13,916 in 2025.
Indiana Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, the solvency surcharge rate is 0%. Applied rates for employers with an account credit reserve balance range from 0.50% to 3.80% and penalty rates for employers with an account credit reserve balance range from 2.50% to 5.80%. Applied rates for employers with an account debit reserve balance range from 4.90% to 7.40% and penalty rates for employers with an account debit reserve balance range from 6.90% to 9.40%. New employers pay a rate of 2.50% and new governmental employers pay a rate of 1.60% in 2026. Also, the new construction employer rate of 2.50% applies unless certain conditions are met. New employers are exempt from the solvency surcharge.
Iowa SB 607
The state of Iowa passed Senate File 607 which is an ACT regarding unemployment insurance. The act changes the calculation of the taxable wage base from 66 ⅔% to 33 ⅓% of the statewide average weekly wage used during the previous calendar year. This will lead to overall reductions to the taxable wage base in Iowa. The state of Iowa has announced their 2026 taxable wage base, it will be $20,400 which is a significant decrease from last year’s wage base of $39,500. This Act also establishes new unemployment rate tables. There are now 4 potential tables (A, B, C, & D). The new rate range for Iowa established with these new, lower, tables are 0.00%-5.40%. As determined by the formula, the contribution rates that employers will pay in calendar year 2026 will be drawn from the new Table D, the lowest allowed by law.
Kansas Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, eligible positive-balance employers pay rates ranging from 0.00% to 4.54%. Negative-balance employers pay rates ranging from 4.81% to 6.95%. New employers pay 1.75%, except new construction employers pay 5.55% for 2026. Newly rated government employers pay 0.10%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $15,100 paid to each employee, up from $14,000 in 2025.
Kansas HB 2570
The law, in relation to unemployment taxes, provides for the following:
Effective with the 2025 rate year, the current SUI rate schedules will be revised to include a 0% rate group for employers with the highest positive rating and SUI tax rates will be lowered for all positive-rated employers. Starting in 2026, changes will also be made to solvency and credit rate adjustments in conformity with the adjustments to the SUI wage base. The potentially lowest rate on the lowest table is 0.00% and the highest potential rate on the highest rate table is 10.35%. The schedule expected to be in effect for 2025, Schedule G, has rates ranging from 0.00% to 8.35%. The SUI rate for new employers will decrease from 6.00% to 5.55% for construction industry employers, and from 2.7% to 1.75% for all other employers.
Effective July 1, 2024, the Employment Security Interest Assessment Fund (IAF) surcharge is repealed.
Effective July 1, 2024, the law provides for an annual calculated debt-forgiveness option for active negative-rated employers with a reserve ratio of -7.150% or less. For such employers, a portion of benefit charges will be conditionally forgiven to bring the employer to a reserve ratio of -7.150%, making the employer eligible for assignment to the lowest SUI rate group for the next three calendar years. A negative-rated employer can forego the debt forgiveness option by submitting a voluntary contribution in an amount sufficient to establish its reserve ratio equal to or greater than -7.149% for the following calendar year.
Effective with the 2025 rate year, the deadline for employers to make voluntary contributions for the purpose of potentially reducing their SUI tax rate is extended from 30 to 90 days following the mailing date of SUI rate notice.
Starting in 2026, the current set SUI wage base of $14,000 for 2025 will be adjusted annually as a percentage of the statewide average annual wage. The percentage will increase progressively through 2030.
Kentucky Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The rate schedule remained rate schedule A, the lowest schedule. The rates range from 0.30% to 9.00%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $12,000 paid to each employee, up from $11,700 in 2025.
Kentucky Announcement Relating to Professional Employer Organizations
Recent amendments to Kentucky's administrative regulations, specifically 787 KAR 1:010 and 787 KAR 1:370, introduce changes affecting Professional Employer Organizations (PEOs) that aim to streamline unemployment insurance reporting and enhance compliance with state labor laws.
PEOs must now establish separate employer reserve accounts for each client. This change necessitates the use of a new form, UI-1P, specifically designed for PEOs to apply for these accounts. The form must be submitted electronically through the Unemployment Insurance Self-Service Web Portal at kewes.ky.gov. PEOs are required to maintain separate records and submit individual state unemployment insurance wage and premium reports for each client. The regulations mandate that PEOs promptly notify the Office of Unemployment Insurance about any additions or deletions of clients during the relevant reporting quarter. For newly established PEOs not previously subject to Ky. Rev. Stat. Ann. §336.248, a new employer premium rate will be assigned based on the reserve ratio of their industrial classification. The regulations clarify that a PEO is not considered a successor employer to any client with whom it has no common ownership, management, or control.
Louisiana Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, contribution rates for eligible positive reserve ratio employers range from 0.09% to 1.94%. Rates for eligible negative reserve ratio employers range from 2.20% to 6.20%.
Maine Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The state will utilize the lowest tax schedule (Schedule A) for 2026. Contribution rates for 2026 will be adjusted by a 0.14% Competitive Skills Scholarship Fund (CSSF) rate and a 0.17% UPAF rate that are now in effect. As adjusted, rates for 2026 range from 0.00% to 6.29%. New employers pay a combined total rate of 2.54% this year.
The taxable wage base remains $12,000 for 2026.
Maryland HB 0352
Beginning January 1, 2026, the new bill: (1) imposes an unemployment insurance administrative fee of 0.15% on all taxable employers; (2) requires that all associated revenue be deposited into the Special Administrative Expense Fund to be used for specified administrative expenses; and (3) reduces the unemployment insurance tax rate assigned to each
taxable employer by 0.15%, subject to a minimum overall tax rate of 1.0% for new employers.
Maryland Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The rate table remained A; however, legislation resulted in a 0.15% administrative fee being added to rates as of January 1, 2026 (HB 0352). The state reduced the rate tables by 0.15% to offset the administrative fee, so there is no increase in the rates to employers. The rates range from 0.3% to 7.5%.
The taxable wage base remains $8,500 for 2026.
Massachusetts Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Schedule E is in effect in Massachusetts for calendar year 2026 (changed from Schedule D for 2025). Rates for positive-balance employers under this schedule range from 0.94% to 5.24%, and rates for negative-balance employers range from 7.03% to 14.37%. New non-construction employers pay 2.42% and new construction employers pay 6.08% in 2026.
In addition, for calendar year 2026, each employer required to make contributions will pay a COVID-19 Recovery Assessment rate on the wages paid to its employees in accordance with the rate determined under Schedule E. The rates range from 0.178% to 0.99% for positive-balance employers and 1.329% to 2.716% for negative-balance employers. New employers, reimbursable employers, governmental employers, employers with zero three-year average wages on their rate notice that received assigned rates, and nonprofit employers that have changed their method of payment to contributory within the last three years are not subject to the COVID-19 Recovery Assessment.
The taxable wage base remains $15,000 for 2026.
Michigan Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Most rate factors remained the same (NBC and ABC), but the Chargeable Benefits Component (CBC) maximum was increased from 6.3% to 8.2% due to a state law resulting from the increase in maximum benefits with the Public Act 173 from 2024. This factor change could result in higher rates as the maximum rate (without penalty) increased from 10.30% to 12.20%. Rates range from 0.06% to 12.20% with a maximum penalty rate of 15.20%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $9,000 paid to each employee ($9,500 for delinquent employers), unchanged from 2025.
Minnesota Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The Minnesota 2026 SUI tax rates were issued on December 12, 2025. The factor of the base rate of 0.4% and the Workforce Enhancement Fee of 0.1% remained the same. However, the state again included the Additional Assessment, which increased from 5% in 2025 to 14% in 2026, resulting in increased contributions for all employers. The state calculates the Additional Assessment on contributions, not taxable payroll. The total cost estimate for experience-rated employers in 2026 ranges from 0.00% to 8.90%. The tax rate for all new employers is based on the average rate for the employer's industry.
Effective January 1, 2026, employers will pay unemployment taxes on the first $44,000 paid to each employee, up from $43,000 in 2025.
Mississippi Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The General Experience Rate remained at 0.00%, and the Workforce Investment and Training Contribution Rate remained at 0.20%. The rates are included in the total rate, as applicable. The contributions for the Workforce Investment and Training Contribution Rate are calculated as a separate item on the quarterly contribution report. The Workforce Investment and Training Contribution Rate consists of three separate rates as indicated at the bottom of the rate notice. The rates range from 0.2% to 5.6%.
The taxable wage base remains $14,000 for 2026.
Missouri Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, there will remain a 12% Contribution Rate Adjustment (CRA) reduction, except for any employer whose calculated contribution rate under Section 288.120 is 6% or greater, then it will be a 10% CRA reduction. The rates will range between 0.00% and 6.75%. Rates for employers participating in the Shared Work Program could range from 0.0% to 9.0% (not including the maximum rate surcharge and/or the contribution rate adjustment). The new employer rate for nonprofit employers is 1.0% and the new employer rate for mining, construction, and all other employers is 2.376% for 2026.
Effective January 1, 2026, employers will pay unemployment taxes on the first $9,000 paid to each employee, down from $9,500 in 2025.
Montana HB 210
The state of Montana passed House Bill 210. With the passage of the bill the state has introduced a new lower rate schedule beginning January 1, 2026. The state introduced a new “Schedule I” and all of the remaining schedules were renamed accordingly. The new Schedule I still has rates ranging from 0.13% to 6.30% as do the other schedules but the overall schedule is lower than the previously named Schedule I.
Montana Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, Schedule I remains in effect and there is also a 0.13% Administrative Fund Tax (AFT) for employers in Rate Class 1 and 2 and a 0.18% AFT for all other experience-rated employers. Total rates for positive-balance employers range from 0.13% to 1.40%. Total rates for negative-balance employers range from 2.90% to 6.30%. New employers are rated by industry classification and will pay the following rates, which do not include the 0.18% AFT, for 2026:
agriculture, forestry, hunting, and fishing employers,1.30%;
construction employers, 2.00%;
mining employers, 1.30%;
finance, insurance, and real estate employers, 1.00%;
manufacturing employers, 1.00%;
retail trade employers, 1.00%;
services employers, 1.10%;
utilities, transportation, and warehousing employers, 1.00%;
wholesale trade employers, 1.00%; and
unclassified employers, 2.00%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $47,300 paid to each employee, up from $45,100 in 2024.
Nebraska Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, the combined tax rates for employers in categories 1 through 19 will range from 0.00% to 1.19%. Employers in category 20 will pay 5.40%. The rate for new non-construction employers is 1.25% and the rate for new construction employers is 5.40%.
The taxable wage base remains $9,000 for 2026 ($24,000 wage base for Tax Category 20 employers).
Nebraska LB 1393
Legislative Bill 1393 adds to the calculation of the state's reserve ratio to determine the yield factor used in figuring out an employer's unemployment tax rate. Also, beginning January 1, 2025, the final average combined unemployment tax rate will be reduced by 5% through December 31, 2029. The yield rate is divided by certain taxable wages to create the average combined tax rate.
Nevada Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
There is only one rate schedule; however, as they do every year, the ratios for each rate bracket of the basic schedule changed. Included in the total rate is the 0.05% Claimant Employment Program (CEP) rate assessed to all employers except those that are maximum rated. Rates range from 0.30% to 5.40%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $43,700 paid to each employee, up from $41,800 in 2025.
New Hampshire Announcement Relating to 2025/2026 Unemployment Tax Rates and Wage Base
The state of New Hampshire issued their 2025/2026 rates on August 27, 2025. For the first quarter of 2026, the fund balance reduction remains 1.0% and no emergency power surcharge applies. Negative-rated employers (employers whose rates are assigned under Schedule II or III) will continue to have an Inverse Rate Surcharge of 0.50% added to their tax rates during the first quarter of 2026. The new employer tax rate remains 1.7%.
The taxable wage base remains $14,000 for calendar year 2026.
New Jersey (fiscal year jurisdiction) Announcement Relating to 2025/2026 Unemployment Tax Rates and Wage Base
Effective July 1, 2025, the SUI tax rate paid by employers will transition from "Column D" (ranging from 0.6% to 6.4%) to the lower "Column C" (ranging from 0.5% to 5.8%).
Effective January 1, 2025, employers will pay unemployment taxes on the first $44,800 paid to each employee, up from $43,300 in 2025.
New Mexico Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, the reserve factor is 3.6361 and the Excess Claims multiplier remained 10%. The rates range from 0.33% to 6.40%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $34,800 paid to each employee, up from $33,200 in 2025.
New York Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, the rate schedule in effect will be the column labeled “0.5% but less than 1.0%” (a decrease from 2025). In this column, the rates range from 1.1% to 3.7% for positive-balance employers and from 4.8% to 8.5% for negative-balance employers. The full range of rates with the normal, subsidiary, and the Reemployment Service Fund taxes for 2026 are 1.7% to 9.5%. New employers pay a total rate of 3.4%, including the subsidiary tax rate of 0.625% and the reemployment tax of 0.075%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $17,600 paid to each employee, up from $12,800 in 2025. The annual taxable wage base is now calculated based on 18% of the average annual wage rounded up to the nearest $100.
North Carolina Announcement Relating to 2026 Wage Bases
Effective January 1, 2026, employers will pay unemployment taxes on the first $34,200 paid to each employee, up from $32,600 in 2025.
North Dakota Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
North Dakota's 2026 contribution rates will range from 0.07% to 1.10% for positive-balance employers and from 6.07% to 9.67% for negative-balance employers. The new employer rate for positive-balance nonconstruction employers will be 1.00% and the new employer rate for negative-balance nonconstruction employers will be 6.07%. The new employer rate for both positive-balance and negative-balance construction employers will be 9.67%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $46,600 paid to each employee, up from $45,100 in 2025.
Ohio Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
The rate schedule remained the same, and the mutualized rate decreased from 0.1% to 0.0% resulting in lower rates. Experienced employer tax rates range from 0.55% to 10.25%. The delinquency rate decreased from 12.8% to 12.75%. New non-construction employer tax rate increased to 2.85% and the construction new employer tax rate increased to 5.85%.
Ohio has implemented a new SUI surcharge of 0.15% on taxable wages up to $9,000 per employee, per year. This SUI surcharge, termed the Technology and Customer Service Fee (TCSF), is effective for years 2026 and 2027 and is paid quarterly together with the base SUI tax.
The TCSF will be used to fund:
A modernized unemployment benefit system, with cloud-based technology, user-friendly notifications and streamlined processes for both employers and claimants, replacing a 20-year-old legacy system
More self-service tools, and improved communications, allowing employers to more easily manage their claims
Improved cybersecurity measures, with fraud tools and advanced data analytics to protect data and ensure a safe and secure digital environment.
The taxable wage base remains $9,000 for calendar year 2026.
Oklahoma Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
The State Experience Factor that determines the ratios for each rate bracket changed from 50 to 30. The Conditional Factor decreased from D to A. Included in the total rate is a 5% OESC Technology Fund rate assessed to all employers except those that are maximum rated. Rates range from 0.20% to 5.80%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $25,000 paid to each employee, down from $28,200 in 2025.
Oregon Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
The rate schedule remained Schedule III, which will result in varying effects on rates as the ratios changed. Included in the total rate is a special payroll tax offset assessed to all but maximum rated employers. It is a 0.09% Supplemental Employment Department Administration Fund rate assessed for all four quarters (maximum rates are exempt). This does not increase the rate; it is just an offset. The rates range from 0.9% to 5.4%.
Effective January 1, 2026, employers will pay unemployment taxes on the first $56,700 paid to each employee, up from $54,300 in 2025.
Pennsylvania Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
For calendar year 2026, the following unemployment compensation solvency measures are in effect: (1) the additional employer contribution is 0.6%; (2) the surcharge tax is 9.2%; (3) the interest factor tax is 0.0%; and (4) the employee tax is 0.07%. The maximum state adjustment factor for 2026 is 0.75%.
The minimum experienced-rated contribution rate is 1.4190% and the maximum experienced-rates contribution rate is 10.3734%. These rates include the surcharge, additional employer contribution, and the interest factor tax. Rates for delinquent employers are 3.0% higher than the assignable basic rate and also include the surcharge, additional employer contribution, and the interest factor tax. New employers pay the following rates for 2026: New nonconstruction employers pay 3.8220% and new construction employers pay 10.5924%. These rates include the surcharge only as the other two taxes do not apply to new employers.
The taxable wage base remains $10,000 for calendar year 2026.
Puerto Rico Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
The rate schedule decreased to Schedule B (from Schedule E in 2025). Included in the total rate, all employers except those assigned the maximum rate (5.4%), are assessed a surtax of 0.1% - 1.0% depending on their assigned rate. The contributions for this surtax are calculated as a separate item on the quarterly contribution report. The rates range from 2.2% to 5.4%.
The taxable wage base remains $7,000 for calendar year 2026.
Rhode Island Announcement Relating to 2026 Unemployment Tax Rates and Wage Bases
Effective January 1, 2026, the UI tax rate schedule will be Schedule F, with tax rates ranging from 0.9% to 9.4%. The rate for new employers will be 1.21%, including the 0.21% Job Development Assessment. By law, the UI taxable wage base represents 46.5% of the average annual wage in Rhode Island.
Effective January 1, 2026, employers will pay unemployment taxes on the first $30,800 paid to each employee ($32,300 for those employers with the highest UI tax rate), up from $29,800 in 2025.
South Carolina Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
Effective January 1, 2026, total tax rates for experienced employers in rate classes 1 to 19 range from 0.06% to 1.045%. The rates include base rates ranging from 0.0% to 0.985% and a contingency assessment of 0.06%. For 2026, there will be no solvency surcharge imposed. The total maximum tax rate, which is assessed on employers in Rate Class 20, remains at 5.46%. The effective new employer tax rate (which is employer Tax Rate Class 12) for 2026 will be 0.210%, down from 0.350% in 2025.
South Dakota SB 26
South Dakota Senate Bill 26 decreases contribution rates for all three Schedules (A, B, and C), beginning January 1, 2026. Rates will range from 0.00% to 9.39%, down from 0.00% to 9.45% previously. Additionally, effective January 1, 2026, employers must pay a 0.08% administrative fee and an investment fee ranging from 0.00% to 0.53%, depending on reserve ratio.
South Dakota Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The rate schedule is the New Schedule C from Senate Bill 26. Included in the rate is the Investment Fee rate, ranging from 0.1% to 0.53% and an Administrative Fee Rate which increased from 0.02% to 0.08% due to Senate Bill 26. The Investment Fee is assessed to all but minimum (0.0%) rated employers, but the Administrative Fee is not assessed to new employers. The contributions for these rates are calculated as separate items on the quarterly contribution report. The new non-construction employer rate for the first year of business is 1.2% and 1.0% for the second and third years of business. New construction employers in their first year of business will pay 6.55%. New construction employers in their second and third year of business will pay 3.55%. All new employers pay a 0.55% investment fee. The rates range from 0.08% to 9.13%.
Tennessee (fiscal year jurisdiction) Announcement Relating to 2025/2026 Unemployment Tax Rates and Wage Bases
Effective July 1, 2025 (through December 31, 2025), Premium Rate Table 6 remains in effect. Rates range from 0.01% to 2.3% for positive-balance employers and from 5.0% to 10.0% for negative-balance employers under this schedule. The rate for new employers remains at 2.7% for the same period. Tennessee law requires the agency to review the Trust Fund Balance as of June 30 and December 31 each year to determine which rate table will be in effect for the following two quarters. If a table change is warranted, revised rate notices would be issued in January.
By February 1 of each year, the Department must report to the state legislature the UI trust fund balance as of the prior December 31, for purposes of determining the SUI taxable wage base for the calendar year. If the UI trust fund balance on December 31 of any year is less than $900 million, the taxable wage base is $9,000. If the trust fund balance is above $900 million, but less than $1 billion on December 31, the taxable wage base is $8,000. If the trust fund balance exceeds $1 billion on December 31, the taxable wage base is $7,000.
The taxable wage base remains at $7,000 for 2026.
Texas Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
As a result of the state’s computations for this year’s unemployment needs, the Replenishment Ratio decreased from 1.21 to 1.20, and the Replenishment Rate increased from 0.15% to 0.21%. The Employment and Training Investment Assessment (ETIA) remained 0.1%. The Bond Obligation Assessment Rate remained 0.00, but the Interest Tax Rate increased from 0.00% to 0.01%. The rates range from 0.32% to 6.32%.
The taxable wage base remains at $9,000 for 2026.
Utah Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The minimum and maximum tax rates are 0.2% and 7.2%. A 1.0% delinquent tax rate may be added to the overall rate for employers that did not pay all contributions for the fiscal year ending June 30. In addition, the reserve factor is 1.10 and the social cost is fixed at 0.002 in 2025. The reserve factor is an adjustment to the benefit ratio used to maintain an adequate balance in the benefit reserve fund. The social cost applies to all employers to recover benefit costs that cannot be attributed to a specific employers.
Effective January 1, 2026, employers will pay unemployment taxes on the first $50,700 paid to each employee, up from $48,900 in 2025.
Vermont (fiscal year jurisdiction) Announcement Relating to 2025/2026 Unemployment Tax Rates and 2026 Wage Base
Effective from July 1, 2025 to June 30, 2026, the Vermont contribution rate schedule for employers remains Schedule 1. Rates under Schedule 1 range from 0.4% for Rate Class 0 to 5.4% for Rate Class 20. New employers pay 1.0% for this period, while new out-of-state employers in certain industries pay as follows: 2.0% for employers involved in the construction of buildings; 3.9% for employers involved in heavy and civil engineering construction; and 2.7% for specialty trade contractors.
Effective January 1, 2026, employers will pay unemployment taxes on the first $15,400 paid to each employee, up from $14,800 in 2024.
Virgin Islands Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The Total Contribution Rate, which is also the new employer rate, decreased from 4.06% to 4.04%. Based on this Total Contribution Rate, the assigned Tax Rate for each employer is based on their payroll variation and assigned a Tax Rate Interval Group (TRIG) of 1 to 14 with the minimum rate not to be less than 0.4% or a maximum rate not to exceed 5.40%. The 2026 Tax Rates will range from 2.44% to the maximum rate of 5.40%. Rates may decrease for most employers based on their payroll variations.
Effective January 1, 2026, employers will pay unemployment taxes on the first $32,100 paid to each employee, up from $31,100 in 2025.
Virginia Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The Virginia 2026 SUI tax rates were issued on December 29, 2025. The Fund Balance Factor changed from 55% to 50%, which resulted in slightly higher rates. The Fund Building Charge remained 0.00%, and the Pool Cost Charge remained 0.00% for the 2026 rate year. The additional Administrative Fee Charge of 0.05% remained the same, and is added as an offset as the base rate has been reduced by 0.05% resulting in no change in the overall rate. The rates range from 0.10% to 6.20%.
The taxable wage base remains at $8,000 for 2026.
Washington Announcement Relating to 2026 Wage Base
Effective January 1, 2026, employers will pay unemployment taxes on the first $78,200 paid to each employee, up from $72,800 in 2025
Washington State SB 5061
The legislation has a number of provisions designed to provide unemployment tax relief to employers. The legislation sets the maximum social tax as follows: (1) 0.50% for 2021; (2) 0.75% for 2022; (3) 0.80% for 2023; (4) 0.85% for 2024; and (5) 0.90% for 2025 and suspends the solvency surcharge for 2021 to 2025. From February 8, 2021 until May 31, 2026, the 10% Voluntary Contribution Program (VCP) surcharge is not charged and the VCP payment deadline is extended to March 31. The minimum amount of a voluntary contribution must result in a recomputed benefit ratio at least two rate classes lower than the original rate class; and only employers who have moved up at least eight rate classes may use the program.
Washington State HB 1901
The expanded access for employers to Washington State's voluntary unemployment insurance (UI) contributions was permanently extended. Voluntary UI contributions allow an employer to reduce its experience rating by reimbursing the UI trust fund for unemployment benefits paid to its former employees. An employer must meet certain criteria to participate in the program. In 2021, the state temporarily expanded access to the program by enacting temporary changes (see SB 5061 above). These changes were set to expire on May 31, 2026. House Bill 1901 makes the temporary expanded access to the program permanent. The now permanent changes include the March 31 submission date for the program (previously, February 15), increasing at least eight rate classes from the previous year (previously, 12 rate classes), and payments resulting in a reduction of two rate classes (previously, four rate classes). In addition, no surcharge will be applied to any voluntary payments (previously, there was a 10% surcharge).
Wisconsin Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
For 2026, Schedule D remains in effect. Rates (including the solvency rate) under Schedule D range from 0.00% to 12.0%. In addition, the rate for newly liable construction employers with payrolls of $500,000 and over is 2.70% for 2026 and the rate for newly liable construction employers with payrolls under $500,000 is 2.50%. The general new employer rate for 2026 is 3.25% for employers with payrolls of $500,000 and over and the general new employer rate is 3.05% for employers with payrolls under $500,000.
The taxable wage base remains at $14,000 for 2026.
Wyoming Announcement Relating to 2026 Unemployment Tax Rates and Wage Base
The total of all constant factors used in the rate computation decreased from 1.50% to 0.10% for most employers and from 0.14% to 0.10% for employers with 0.00 benefit charges, resulting in lower rates. Included in the total rate is a 0.060% Employment Support Fund rate assessed to all employers. The contributions for this rate are not calculated as a separate item on the quarterly contribution report; however, the percentage is noted. A Workforce Development Training Fund factor of 0.020% has been included in the computation of the 2026 rate due to legislation. This is an assessment on all employers to provide increased funding to develop the Wyoming workforce and cannot be used toward the Federal Unemployment Tax Act (FUTA) credit the same as the Employment Support Fund factor.
Effective January 1, 2026, employers will pay unemployment taxes on the first $33,800 paid to each employee, up from $32,400 in 2025.
Conclusion
While it is prudent for employers to be aware of the direction of SUI tax rates using indicators like state unemployment trust fund balance trends, state legislative initiatives, and overall economic conditions (all considered to be “uncontrollable factors”), it continues to be important for employers to take their own actions (“controllable factors”) to help keep SUI tax rates and associated costs as low as possible by:
Diligently adjudicating unemployment claims
Auditing benefit charges and timely appealing those that appear improper
Ensuring all quarterly contribution and wage reports are filed timely
Identifying and reconciling any outstanding liabilities on state unemployment accounts
Utilizing available state-specific rating strategies to help lower SUI tax rates (e.g., voluntary contributions, joint account formation, negative write-off payments, payroll variation elections, etc.)
Even after rates have been calculated and assigned, there are actions that employers can take to help reduce SUI tax rates. Visit the Equifax blog titled: Planning Strategies to Help Reduce SUI Tax Burdens in 2023 and Beyond for additional insights.
To keep up-to-date, please visit our Employer Unemployment Insurance Resource Center (log-in may be required). The site includes a 2026 Tax Guide intended to assist employers in identifying potential risks associated with increases in SUI tax costs from 2025 to 2026 (e.g., changes in minimum and maximum SUI tax rates, changes in wage bases, etc.).
Please reach out to your Equifax representative to help address potential risks associated with the current unemployment landscape. Not a current client? Please feel free to contact our Employment Tax Consulting Group with any questions.
Footnotes:
* Internal Revenue Code Sections 3302(c)(2) and 3302(d)(3) and the related U.S. Department of Labor(“DOL”) Regulations (20 CFR Part 606).
** Per the FUTA Credit Reduction site published by the U.S. DOL Employment & Training Administration.
*** Per data obtained from FiscalData (an official website jointly created by the U.S. Department of the Treasury and the Bureau of the Fiscal Service).
**** Per U.S. DOL, SUI Trust Fund Solvency Report for 2025 (issued February 2025). The Average High Cost Multiple (AHCM) is measured as the Reserve Ratio (Trust Fund as a % of Total Wages) at the end of the calendar year immediately preceding the report year, divided by the Average High Cost Rate. The Average High Cost Rate is the average of the three highest calendar year benefit cost rates in the last 20 years (or a period including three recessions, if longer).
***** Per respective Unemployment Insurance Data Summary reports published by the U.S. Department of Labor and data obtained from FiscalData, TreasuryDirect (an official website of the U.S. Department of Treasury), and Average Employer Contribution Rates by State.
****** Information obtained from sources considered to be reliable (e.g., state legislative changes, state workforce agency announcements, state surveys, etc.).
The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel. Equifax Workforce Solutions provides services that can help employers reduce their compliance risks. Details on our provision of these services and related support will be contained in your services agreement. Links to sources may be to third party sites. We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.