Article
3 min read
State Unemployment Insurance (SUI) Rates by State (2025)
US payroll
PEO
Author
Shannon Ongaro
Last Update
July 31, 2026
Table of Contents
What is State Unemployment Insurance (SUI)?
Do you need to pay federal and state unemployment taxes for your employees?
SUI rates by state in 2026
Simplify US payroll tax compliance with Deel
Do you need to pay federal and state unemployment taxes for your employees?
Key takeaways
- State Unemployment Insurance (SUI) is a government-funded program providing temporary financial assistance to workers who lose their jobs through no fault of their own.
- Benefit amounts, taxes, and eligibility criteria vary by state.
- SUI programs are primarily funded by employers through payroll taxes, though some states also require minimal employee contributions.
Understanding complicated State Unemployment Insurance (SUI) tax rates across the United States can feel like a daunting task for employers, particularly as rates and regulations shift each year.
With SUI being a mandatory payroll tax that funds short-term unemployment benefits, understanding the nuances for 2025—from maximum taxable earnings to new employer rates—is crucial for maintaining compliance and avoiding costly mistakes.
At Deel, we recognize that staying compliant while managing a complex payroll landscape can be overwhelming, especially for businesses operating across multiple states. That’s why this blog breaks down the state-by-state SUI tax rates for 2025, offering clarity and actionable insights to help your business effectively meet its obligations.
By leveraging Deel's expertise in payroll and compliance, you can save time and reduce risk, ensuring your team focuses on growth while we handle the complexities.
What is State Unemployment Insurance (SUI)?
State Unemployment Insurance (SUI) is a state-run insurance program that provides short-term benefits to workers who lose their jobs through no fault of their own. It is funded by employers through payroll taxes.
This insurance helps unemployed individuals while they search for new employment. The specifics, such as the amount and duration of benefits, are determined by state law.
You may also be intereested in: Supplemental Tax Rates by State (2025)
Do you need to pay federal and state unemployment taxes for your employees?
Yes. Employers are generally required to pay both FUTA (federal) and SUTA (state) unemployment taxes once they meet basic hiring or wage thresholds. Both taxes are employer-paid—not withheld from employees—with the exception of Alaska, New Jersey, and Pennsylvania, where employees also contribute to state unemployment.
SUI rates by state in 2026
In most states, SUI is funded solely by employers, though a few states also require minimal contributions from employees. Employers must register for an SUI account number and pay these taxes in any state where they have employees working.
| State | 2026 Max Taxable Wage Base | Employee Contribution | 2026 Employer Rate Range | 2026 New-Employer Rate | Voluntary Contributions |
|---|---|---|---|---|---|
| Alabama | $8,000 | None | 0.20%–5.40% (plus 0.06% Employment Security Assessment) | 2.7% | Not Permitted |
| Alaska | $54,200 | 0.50% employee | Employer 1.00%–5.40% | ~1.5% standard | Not Permitted |
| Arizona | $8,000 | None | Roughly 0.04%–9.72% | 2.0% | Not Permitted |
| Arkansas | $7,000 | None | approximately 0.2%–5.1% | ~1.9% | Permitted |
| California | $7,000 | None | 1.5%–6.2% (plus 0.1% Employment Training Tax) | 3.4% | Effectively Not Permitted in 2026 (state on Schedule F+ insolvency schedule) |
| Colorado | $30,600 | None | 0.72%–4.58% positive-rated / 5.895%–10.85% negative-rated (plus support + solvency surcharges) | 3.05% | Permitted |
| Connecticut | $27,000 | None | 1.1%–9.9% | 1.9% (down from 2.2%) | Not Permitted |
| Delaware | $14,500 | None | 0.3%–5.4% | 1.0% | Not Permitted |
| Florida | $7,000 | None | 0.1%–5.4% | 2.7% | Not Permitted |
| Georgia | $9,500 | None | 0.06%–8.1% | 2.7% | Permitted |
| Hawaii | ~$64,900 | None | 0%–6.2% | 2.4% | Not Permitted |
| Idaho | $58,300 | None | 0.208%–5.4% | 1.0% | Not Permitted |
| Illinois | $14,250 | None | 0.75%–7.05% | ~3.35% | Not Permitted |
| Indiana | $9,500 | None | 0.50%–7.40% | 2.5% | Permitted |
| Iowa | $20,400 | None | 0%–5.4% | 1.0% | Not Permitted |
| Kansas | $15,100 | None | 0%–6.95% | 1.75% | Permitted (VC deadline extended to 90 days after rate notice, per HB 2570) |
| Kentucky | $12,000 | None | 0.3%–9.0% | 2.7% | Permitted |
| Louisiana | $7,000 | None | 0.09%–6.2% | varies | Permitted (VC within 30 days of rate notice) |
| Maine | $12,000 | None | 0.31%–6.6% (incl. 0.14% CSSF and 0.17% UPAF assessments) | 2.54% | Permitted |
| Maryland | $8,500 | None | Roughly 0.3%–7.5% | 1.0%–2.6% | Not Permitted |
| Massachusetts | $15,000 | None | Schedule E: UI 0.94%–5.24% positive / 7.03%–14.37% negative, plus COVID-19 Recovery Assessment (effective combined up to ~17%) | 2.42% | Permitted |
| Michigan | $9,000 (nondelinquent) / $9,500 (delinquent) | None | 0.06%–10.3% | 2.7% | Permitted |
| Minnesota | $44,000 | None | up to ~8.9% | industry-average (varies) | Permitted |
| Mississippi | $14,000 | None | 0.2%–5.6% | 1.0%–1.2% | Not Permitted |
| Missouri | $9,000 | None | 0%–9% | ~2.376% | Permitted (VC deadline January 15) |
| Montana | $47,300 | None | 0.00%–6.12% (plus AFT rate) | varies | Not Permitted |
| Nebraska | $9,000 (most) / $24,000 (max-rated employers) | None | 0%–5.4% | 1.25% (5.4% construction) | Permitted |
| Nevada | $43,700 | None | 0.25%–5.4% (plus 0.05% CEP) | 2.95% | Not Permitted |
| New Hampshire | $14,000 | None | 0.1%–7.5% | 2.7% less current trust-fund reduction | Not Permitted |
| New Jersey | $44,800 | 0.425% employee | Employer Table C 0.5%–5.8% | 2.8% | Permitted |
| New Mexico | ~$34,700 | None | 1.0%–1.6% | 1.0% | Not Permitted |
| New York | $17,600 | None | Roughly 2.1%–9.9% all-in | 4.1% (incl. 0.075% RSF) | Permitted (VC deadline March 31) |
| North Carolina | $34,200 | None | 0.06%–5.76% | 1.0% | Permitted (VC deadline ~January 15) |
| North Dakota | $46,600 | None | 0.07%–9.67% | 1.03% positive / 6.09% negative | Permitted |
| Ohio | $9,000 | None | 0.4%–10.1% (plus new 0.15% Technology & Customer Service fee for 2026–2027) | 2.85% | Permitted |
| Oklahoma | $25,000 | None | 0.2%–5.8% | 1.5% | Not Permitted |
| Oregon | $56,700 | None | 0.9%–5.4% | 2.4% | Not Permitted |
| Pennsylvania | $10,000 employer base | 0.07% employee (no cap) | Employer 1.419%–10.3734% | 3.822% non-construction / 10.5924% construction | Permitted (buy-down deadline Jan 30, 2026) |
| Rhode Island | $30,800 (or $32,300 for negative-balance employers) | None | 0.9%–9.4% | 1.21% (incl. 0.21% Job Development Assessment) | Permitted |
| South Carolina | $14,000 | None | 0.06%–5.46% (incl. 0.06% Contingency Assessment) | 0.21% or 1% | Not Permitted |
| South Dakota | $15,000 | None | 0%–9.3% | 1.2% UI + 0.55% Investment Fee | Permitted |
| Tennessee | $7,000 | None | 0.01%–10.0% | 2.7% (first 3 years) | Not Permitted |
| Texas | $9,000 | None | 0.23%–6.23% | 2.7% or industry average | Permitted (VC via Form C-24 within 60 days of rate notice) |
| Utah | $50,700 | None | roughly 0.1%–7.2% | industry-average (varies) | Not Permitted |
| Vermont | $15,400 | None | 0.4%–5.4% | 1.0% | Not Permitted |
| Virginia | $8,000 | None | 0.13%–6.23% | 2.5% plus add-ons | Not Permitted |
| Washington | $78,200 | None | 0.27%–8.15% | industry-average (varies) | Permitted (permanently expanded via HB 1901; deadline March 31, no surcharge) |
| West Virginia | $9,500 | None | 1.5%–8.5% | 2.7% | Permitted |
| Wisconsin | $14,000 | None | 0%–4.45% positive / 6.4%–12.0% negative | 3.05% (payroll <$500k) / 3.25% (payroll >$500k) | Permitted |
| Wyoming | $33,800 | None | 0.18%–8.5% | varies (1.22%–8.72%) | Not Permitted |
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Rates are accurate at the time of publishing. Consult a professional before proceeding.
Deel Payroll - US
Simplify US payroll tax compliance with Deel
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more.
Employers can leave state-by-state compliance to experts by using Deel Payroll - US or PEO to handle HR, payroll, and compliance efficiently. To streamline your payroll processes and ensure compliance, book a demo with Deel today.
Do you need to pay federal and state unemployment taxes for your employees?
Yes. Employers are generally required to pay both FUTA (federal) and SUTA (state) unemployment taxes once they meet basic hiring or wage thresholds. Both taxes are employer-paid—not withheld from employees—with the exception of Alaska, New Jersey, and Pennsylvania, where employees also contribute to state unemployment.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
