Confused by the ever-changing SUTA (State Unemployment Tax Act) landscape? We’ve compiled a comprehensive list of 2024 SUTA wage bases for each state, making it easier for you to stay compliant and manage your payroll taxes effectively. Simply find your state in the table below and discover the applicable wage base for the upcoming year!
State | 2024 SUTA Wage Base |
| Alabama | $8,000 |
| Alaska | $49,700 |
| Arizona | $8,000 |
| Arkansas | $7,000 |
| California | $7,000 |
| Colorado | $23,800 |
| Connecticut | $25,000 |
| D.C. | $9,000 |
| Delaware | $10,500 |
| Florida | $7,000 |
| Georgia | $9,500 |
| Hawaii* | $56,700 |
| Idaho | $49,900 |
| Illinois | $13,271 |
| Indiana | $9,500 |
| Iowa | $38,200 |
| Kansas | $14,000 |
| Kentucky | $11,400 |
| Louisiana | $7,700 |
| Maine | $12,000 |
| Maryland | $8,500 |
| Massachusetts | $15,000 |
| Michigan | $9,500 |
| Minnesota | $42,000 |
| Mississippi | $14,000 |
| Missouri | $10,000 |
| Montana | $43,000 |
| Nebraska** | $9,000 – $24,000 |
| Nevada | $40,600 |
| New Hampshire | $14,000 |
| New Jersey | $42,300 |
| New Mexico | $30,100 |
| New York | $12,500 |
| North Carolina | $29,600 |
| North Dakota | $40,800 |
| Ohio | $9,000 |
| Oklahoma | $27,000 |
| Oregon | $50,900 |
| Pennsylvania | $10,000 |
| Rhode Island** | $29,700 |
| South Carolina | $14,000 |
| South Dakota | $15,000 |
| Tennessee | $7,000 |
| Texas | $9,000 |
| Utah | $44,800 |
| Vermont | $14,300 |
| Virginia | $8,000 |
| Washington | $68,500 |
| West Virginia | $9,000 |
| Wisconsin | $14,000 |
| Wyoming | $30,900 |
| *Hawaii enacted an Unemployment Insurance Technology Special Fund Tax of 0.01% for all employers. | |
| **Under Nebraska’s Employment Security Law, a determination of liability or combined tax rate will be given to the employer’s last-known address or the address. | |
| ***Rhode Island’s wage base is $29,700 for employers with the highest SUTA rate and $28,200 for all other employers. | |
SUTA Wage Base 101
Your SUTA rate for 2024 is like a recipe made up of two main ingredients:
- Tax rate: This is a percentage of your employee’s wages that you pay to the state. It can range from as low as 0% to as high as 20%, depending on your state and your company’s unemployment history.
- Wage base: This is the maximum wage per employee subject to the SUTA tax. In 2024, the federal minimum wage base under FUTA is $7,000, but most states have a higher base.
Think of it like this: Your SUTA tax payment = (Tax rate) x (Employee wages), but only up to the Wage base amount. So, the higher your tax rate or wage base, the more you’ll pay.
What Determines the Number
Several factors influence why SUTA wage bases vary significantly across states:
1. Solvency of the state’s unemployment fund: This is the primary factor. States with healthy funds and low unemployment rates can afford lower wage bases. Conversely, states struggling financially or experiencing high unemployment may need higher bases to ensure sufficient funds for jobless benefits.
2. State economy and average wages: States with high average wages tend to have higher wage bases. This ensures the unemployment system remains financially sound and covers a broader range of workers.
3. State legislation and policy priorities: Some states prioritize economic growth and lower taxes, leading to lower wage bases. Others prioritize robust unemployment benefits and a strong safety net, leading to higher bases.
4. Historical unemployment claims data: States with a history of high unemployment claims may have higher wage bases as a precaution. This helps them build sufficient reserves to handle future economic downturns.
5. Federal minimum wage base: While states set their own wage bases, they must be at least equal to the federal minimum wage base ($7,000 in 2024). This helps ensure some level of consistency across states.
The SUTA wage base is a complex balancing act between ensuring sufficient funds for unemployment benefits, keeping taxes low for businesses, and reflecting the economic realities of each state.
Questions about your company’s SUTA rate? Contact Nextep, and we can help!
