What is the taxable wage base?
The taxable wage base is one of the key components in determining how much an employer will have to pay in unemployment taxes over the course of a year. Taxable wages vary from state to state, but generally there is a “cap” known as the taxable wage base, where an employer does not have to pay taxes on the money paid to an employee over a certain point. States determine the taxable wage base in different ways. Some use a formula or follow a certain percentage of each state’s average wages, while many follow the FUTA taxable wage base of $7,000 in 2017.
Below is a list of the taxable wage base in each state. You may notice that some states have much higher taxable wage bases than other states. These higher taxable wages are not always offset by a lower unemployment tax rate. Keep an eye out for states that adjust the taxable wage base each year. Those states are as follows: Alaska, Colorado, Hawaii, Idaho, Iowa, Minnesota, Montana, Nevada, New Jersey (lower for 2017), New Mexico, New York, North Carolina, North Dakota (lower for 2017), Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Washington, and Wyoming.
| State | Taxable wage base |
| Alabama | 8,000.00 |
| Alaska | 39,800.00 |
| Arizona | 7,000.00 |
| Arkansas | 12,000.00 |
| California | 7,000.00 |
| Colorado | 12,500.00 |
| Connecticut | 15,000.00 |
| Delaware | 18,500.00 |
| Florida | 7,000.00 |
| Georgia | 9,500.00 |
| Hawaii | 44,000.00 |
| Idaho | 37,800.00 |
| Illinois | 12,960.00 |
| Indiana | 9,500.00 |
| Iowa | 29,300.00 |
| Kansas | 14,000.00 |
| Kentucky | 10,200.00 |
| Louisiana | 7,700.00 |
| Maine | 12,000.00 |
| Maryland | 8,500.00 |
| Massachusetts | 15,000.00 |
| Michigan | 9,000.00 |
| Minnesota | 32,000.00 |
| Mississippi | 14,000.00 |
| Missouri | 13,000.00 |
| Montana | 31,400.00 |
| Nebraska | 9,000.00 |
| Nevada | 29,500.00 |
| New Hampshire | 14,000.00 |
| New Jersey | 33,500.00 |
| New Mexico | 24,300.00 |
| New York | 10,900.00 |
| North Carolina | 23,100.00 |
| North Dakota | 35,100.00 |
| Ohio | 9,000.00 |
| Oklahoma | 17,700.00 |
| Oregon | 38,400.00 |
| Pennsylvania | 9,750.00 |
| Rhode Island | 23,900.00 |
| South Carolina | 14,000.00 |
| South Dakota | 15,000.00 |
| Tennessee | 8,000.00 |
| Texas | 9,000.00 |
| Utah | 33,100.00 |
| Vermont | 17,300.00 |
| Virginia | 8,000.00 |
| Washington | 45,000.00 |
| West Virginia | 12,000.00 |
| Wisconsin | 14,000.00 |
| Wyoming | 25,400.00 |
| District of Columbia | 9,000.00 |
| Puerto Rico | 7,000.00 |
| Virgin Islands | 23,500.00 |
For more information about how taxable wages impact your unemployment expenses contact us today! One of our experts will be happy to help.
