Employer payroll taxes for 2026
Every employer pays these federal taxes on each employee's wages, separate from what it withholds from the paycheck.
- Social Security: 6.2% of wages up to $184,500, matching what the employee pays.
- Medicare: 1.45% of all wages, also matched. The employee's extra 0.9% over $200,000 has no employer match.
- Federal unemployment (FUTA): 6% of the first $7,000, cut to 0.6% by the credit for paying state unemployment tax. That is $42 per employee a year.
States that borrowed from the federal government to pay unemployment benefits lose part of the FUTA credit. For 2026 wages that applies to California (1.5% more), based on the Department of Labor's January estimate. The final figures come out in November.
State unemployment tax (SUTA) comes on top. Each state sets its own wage base and gives new employers a starting rate, then adjusts the rate each year based on the employer's layoff history. Some states also charge employers part of a paid leave or disability program.
State unemployment tax rates for 2026
New-employer rates for an ordinary employer. Construction and some other industries start at a different rate in several states.
| State | Wage base | New employer rate | Employer leave or disability programs |
|---|---|---|---|
| Alabama | $8,000 | 2.7% | None |
| Alaska | $54,200 | 1% | None |
| Arizona | $8,000 | 2% | None |
| Arkansas | $7,000 | 2% | None |
| California | $7,000 | 3.5% | None |
| Colorado | $30,600 | 3.05% | CO FAMLI paid leave |
| Connecticut | $27,000 | 1.9% | None |
| Delaware | $14,500 | 1.31% | DE paid leave, DE paid leave (parental only) |
| District of Columbia | $9,000 | 2.9% | DC paid family leave |
| Florida | $7,000 | 2.7% | None |
| Georgia | $9,500 | 2.7% | None |
| Hawaii | $64,500 | 2.41% | None |
| Idaho | $58,300 | 1% | None |
| Illinois | $14,250 | 3.35% | None |
| Indiana | $9,500 | 2.5% | None |
| Iowa | $20,400 | 1% | None |
| Kansas | $15,100 | 1.75% | None |
| Kentucky | $12,000 | 2.7% | None |
| Louisiana | $7,000 | Varies | None |
| Maine | $12,000 | 2.54% | ME paid family and medical leave |
| Maryland | $8,500 | 2.6% | None |
| Massachusetts | $15,000 | 2.476% | MA paid family and medical leave |
| Michigan | $9,000 | 2.7% | None |
| Minnesota | $44,000 | 1.696% | MN paid leave |
| Mississippi | $14,000 | 1.2% | None |
| Missouri | $9,000 | 2.376% | None |
| Montana | $47,300 | 1.18% | None |
| Nebraska | $9,000 | 1.25% | None |
| Nevada | $43,700 | 3% | None |
| New Hampshire | $14,000 | 1.7% | None |
| New Jersey | $44,800 | 2.8% | NJ disability insurance |
| New Mexico | $34,800 | 1% | None |
| New York | $17,600 | 4.1% | None |
| North Carolina | $34,200 | 1% | None |
| North Dakota | $46,600 | 1% | None |
| Ohio | $9,000 | 2.85% | None |
| Oklahoma | $25,000 | 1.5% | None |
| Oregon | $56,700 | 2.4% | Paid Leave Oregon |
| Pennsylvania | $10,000 | 3.822% | None |
| Rhode Island | $30,800 | 1.21% | None |
| South Carolina | $14,000 | 1.06% | None |
| South Dakota | $15,000 | 1.75% | None |
| Tennessee | $7,000 | 2.7% | None |
| Texas | $9,000 | 2.7% | None |
| Utah | $50,700 | Varies | None |
| Vermont | $15,400 | 1% | VT child care contribution |
| Virginia | $8,000 | 2.55% | None |
| Washington | $78,200 | Varies | WA paid family and medical leave |
| West Virginia | $9,500 | 2.7% | None |
| Wisconsin | $14,000 | 3.05% | None |
| Wyoming | $33,800 | Varies | None |
How to run payroll for one employee
- Work out gross pay for the period: salary divided by the number of paychecks, or hours times the wage plus overtime.
- Take out pre-tax deductions such as 401(k) and health premiums.
- Withhold federal income tax with the employee's W-4 and IRS Publication 15-T, then 6.2% Social Security and 1.45% Medicare.
- Withhold state and local income tax and any employee-paid state programs.
- Pay the employee the rest, and add your own share of FICA, FUTA and state unemployment tax to your deposit.
In Texas, a $60,000 employee paid every two weeks takes home $1,938.08 a paycheck and costs the employer $64,875.00 a year. Employees checking their own pay can use the paycheck calculator. For bonuses, use the bonus payroll calculator.