2026 SUTA Wage Base Rundown by State

2026 SUTA Wage Base Amounts

We’ve put together a comprehensive list of 2026 SUTA (State Unemployment Tax Act) wage bases for each state, making it easier for you to stay compliant and manage your payroll taxes. Simply find your state in the table below and discover the applicable wage base for the upcoming year.

Not all SUTA wage bases have been released for 2026. These numbers are valid as of 1/2/2026. Primary source: payroll.org. Check back often for updates.

Visit your state’s Department of Labor website to verify.

State	2026 SUTA Wage Base	2025 SUTA Wage Base
Alabama	$8,000	$8,000
Alaska	$54,200	$51,700
Arizona	$8,000	$8,000
Arkansas	$7,000	$7,000
California	$7,000	$7,000
Colorado	$30,600	$27,200
Connecticut	$27,000	$26,100
D.C.	$9,000	$9,000
Delaware	$14,500	$12,500
Florida	$7,000	$7,000
Georgia	$9,500	$9,500
Hawaii¹	$64,500	$62,000
Idaho	$58,300	$55,300
Illinois	$14,250	$13,916
Indiana	$9,500	$9,500
Iowa	$20,400	$39,500
Kansas	$15,100	$14,000
Kentucky	$12,000	$11,700
Louisiana	$7,000	$7,700
Maine	$12,000	$12,000
Maryland	$8,500	$8,500
Massachusetts	$15,000	$15,000
Michigan²	$9,500	$9,500
Minnesota	$44,000	$43,000
Mississippi	$14,000	$14,000
Missouri	$9,000	$9,500
Montana	$47,300	$45,100
Nebraska³	$9,000 – $24,000	$9,000 – $24,000
Nevada	$43,700	$41,800
New Hampshire	$14,000	$14,000
New Jersey	$44,800	$43,300
New Mexico	$34,800	$33,200
New York	$13,000	$12,800
North Carolina	$34,200	$32,600
North Dakota	$46,600	$45,100
Ohio	$9,000	$9,000
Oklahoma	$25,000	$28,200
Oregon	$56,700	$54,300
Pennsylvania	$10,000	$10,000
Rhode Island⁴	$30,800	$29,800 – $31,800
South Carolina	$14,000	$14,000
South Dakota	$15,000	$15,000
Tennessee	$7,000 (expected, not confirmed)	$7,000
Texas	$9,000	$9,000
Utah	$50,700	$48,900
Vermont	$15,400	$14,800
Virginia	$8,000	$8,000
Washington	$78,200	$72,800
West Virginia	$9,500	$9,500
Wisconsin	$14,000	$14,000
Wyoming	$33,800	$32,400
¹ Hawaii enacted an Unemployment Insurance Technology Special Fund Tax of 0.01% for all employers in 2024.
² Michigan’s SUTA wage base is $9,500 for employers delinquent on UI payments.
³ Nebraska’s wage base is $24,000 for employers with the highest SUTA rate. 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.
⁴ Rhode Island’s wage base is $31,800 for employers with the highest SUTA rate.

SUTA Wage Base 101

The State Unemployment Tax Act (SUTA) is a crucial part of managing your payroll taxes. Think of it as an insurance premium you pay to the state, ensuring there’s a safety net for workers if they lose their jobs.

Your total SUTA tax payment is made up of two key players: the tax rate and the wage base.

Tax rate: The percentage of your employee’s wages 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 claim history. Ballotpedia has a helpful rundown of those percentages by state.
Wage base: The maximum amount of an employee’s taxes that is actually taxed. In 2026, the federal minimum under FUTA is $7,000, but most states have a higher base.

Your SUTA tax payment = (Tax rate) x (Employee wages, up to the wage base)

Example: Larry Smith in Oklahoma earns $100,000 per year. In 2026, only the first $25,000 of Larry’s wages are taxable for SUI purposes. Assuming a 1.5% SUTA employer tax rate, your company will pay $375 in SUI taxes (1.5% x 25,000).

What Determines the Number

You may notice the wage bases vary widely from state to state. Several factors influence those numbers.

1. Solvency of the fund: 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 there are enough funds for claims.

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. Federal minimum: While states set their own wage bases, they must be at least equal to the federal minimum FUTA wage base ($7,000 in 2026). This helps ensure some level of consistency across states.

5. Your own company’s history: While the wage base is set by the state, the tax rate is tailored to you. Much like any other insurance policy, if your company has a history of high unemployment claims or payouts, your SUTA tax rate will be higher. Your SUTA tax rate is assigned at the company level, even within the same state. For example, your company will likely have a different SUTA rate than your neighbor’s.

Are There Exemptions for FUTA and SUTA Taxes?

Most businesses are required to pay both federal (FUTA) and state (SUTA) unemployment taxes, but there are notable exceptions. 501(c)(3) nonprofits, governmental organizations, and tribal entities are exempt from paying FUTA.

However, these organizations are generally still required to participate in their local SUTA programs. Navigating these exceptions and tracking wage bases across all 50 states, D.C., and territories can become a massive administrative burden for internal HR teams. This is why many organizations partner with a PEO like Nextep. We help determine your exact tax liabilities, ensure you claim the right exemptions, and handle tax remittances on your behalf.

The SUTA wage base is a complex balance between ensuring sufficient funds for unemployment benefits, keeping taxes low for businesses, and reflecting each state’s economic realities.

Visit your state’s Department of Labor website to verify. If Nextep’s numbers differ, the DOL info prevails.

Tired of tracking these changing wage bases? When you partner with a PEO like Nextep, we handle SUTA compliance for you, and you may even benefit from our established state tax rates. Contact Nextep to see how!