Understanding the State Unemployment Tax Act (SUTA) is essential for employers managing payroll across different states. Since each state sets its own SUTA tax rates and wage base limits, employers must determine the appropriate state requirements for their employees to ensure accurate tax calculations and compliance. Failure to meet unemployment tax obligations may result in penalties and additional charges.
Continue reading to learn more about SUTA taxes, state tax rates, wage base limits, and how employers can calculate SUTA taxes accurately.
Let’s explore the key details of SUTA taxes and how they impact employers.
Key Takeways:
- SUTA is the state payroll tax that funds the unemployed in the states.
- The states decide SUTA tax rates, which vary for each state.
- Only employers are responsible for paying SUTA tax.
What is SUTA?
SUTA (State Unemployment Tax Act), also known as State Unemployment Insurance (SUI), is a state payroll tax paid by employers to fund unemployment benefits for eligible workers. The taxes collected through the SUTA program are managed by individual state governments and used to provide temporary financial assistance to employees who lose their jobs under qualifying circumstances.
Each state sets its own SUTA tax rates, taxable wage base limits, and employer requirements, which means the rates and regulations can vary across states. Employers must determine the correct state unemployment tax requirements based on where their employees work to ensure accurate payroll tax calculations and compliance with state laws.
SUTA might be referred by different names such as:
-
State Unemployment Insurance (SUI)
-
Reemployment tax (e.g., Florida)
-
Employment security tax (e.g., Alaska)
-
Unemployment tax program (e.g., Texas)
Who pays the SUTA tax?
In most states, employers are responsible for paying SUTA tax for their employees. Businesses with employees must determine the state in which each employee works to apply the correct SUTA tax rate and taxable wage base. The collected taxes are then remitted to the respective state government to support unemployment benefit programs.
While SUTA taxes are generally paid only by employers, a few states also require employee contributions toward state unemployment insurance. Below are the states that require employee contributions, along with their applicable tax rates:
|
State
|
Employee tax rate 2025
|
| Alaska |
0.56%
|
|
New Jersey
|
0.425%
|
|
Pennsylvania
|
0.07%
|
What is the SUTA wage base?
SUTA wage base or taxable wage base is different for every state. SUTA wage base is determined using the following criteria:
-
Some states determine using the employee termination ratio of the state.
-
While others use a percentage of the state's average annual wage.
-
Some follow the FUTA wage base limit.
The SUTA wage base is the threshold for employee’s earnings if the employees earn below the wage base employers are responsible for paying the SUTA taxes for their states.
How much is the SUTA tax rate and Wage Base Limits for 2026?
SUTA wage rates vary for each state, If the employees belong to multiple states then it is necessary for the employer to determine the Unemployment tax rate of each state. The taxable wage base for all the states in the U.S. are listed here
|
State
|
Wage base limit
|
State
|
Wage base limit
|
| Alabama |
$8000
|
Montana
|
$47,300
|
|
Alaska
|
$54,200
|
Nebraska
|
$9,000 – $24,000
|
|
Arizona
|
$8000
|
Nevada
|
$43,700
|
|
Arkansas
|
$7000
|
New Hampshire
|
$14,000
|
|
California
|
$7000
|
New Jersey
|
$44,800
|
|
Colorado
|
$30,600
|
New Mexico
|
$34,800
|
|
Connecticut
|
$27,000
|
New York
|
$13,000
|
|
Delaware
|
$14,500
|
North Carolina
|
$34,200
|
|
District of Columbia
|
$9000
|
North Dakota
|
$46,600
|
|
Florida
|
$7000
|
Ohio
|
$9000
|
|
Georgia
|
$9500
|
Oklahoma
|
$25,000
|
|
Hawaii
|
$64,500
|
Oregon
|
$56,700
|
|
Idaho
|
$58,300
|
Pennsylvania
|
$10,000
|
|
Illinois
|
$14,250
|
Puerto Rico
|
$7000
|
|
Indiana
|
$9,500
|
Rhode Island
|
$30,800
|
|
Iowa
|
$20,400
|
South Carolina
|
$14,000
|
|
Kansas
|
$15,100
|
South Dakota
|
$15,000
|
|
Kentucky
|
$12,000
|
Tennessee
|
$7000
|
|
Louisiana
|
$7,000
|
Texas
|
$9000
|
|
Maine
|
$12,000
|
Utah
|
$50,700
|
|
Maryland
|
$8,500
|
Vermont
|
$15,400
|
|
Massachusetts
|
$15000
|
Virginia
|
$8000
|
|
Michigan
|
$9,500
|
Washington
|
$78,200
|
|
Minnesota
|
$44,000
|
West Virginia
|
$9,500
|
|
Mississippi
|
$9,000
|
Wisconsin
|
$14,000
|
|
Missouri
|
$9,000
|
Wyoming
|
$33,800
|
How to calculate the SUTA tax?
To calculate the SUTA tax rate for employers, multiply states' taxable wage base with the employee tax rate.
Example
Consider a new employee in California, who is working in an organization. The SUTA tax rate is 3.4%(For new employers) and the taxable wage base for California state is $7000 (for 2024). SUTA calculation for
the employer is
SUTA Tax Liability = Taxable Wage Base × SUTA Tax Rate × Number of Employees
How often is suta tax paid?
In most states, employers are required to file and pay SUTA taxes quarterly, although filing requirements and payment schedules may vary by state. The standard due dates for each quarter are listed below:
|
Quarter
|
Due Date
|
| Quarter 1 (Jan, Feb, Mar) |
April 30th
|
|
Quarter 2 (Apr, May, June)
|
July 31st
|
|
Quarter 3 (July, Aug, Sept)
|
October 31st
|
|
Quarter 4 (Oct, Nov, Dec)
|
January 31st (following year)
|
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Frequently Asked Questions
If employers have employees working in multiple locations, they are required to file SUTA tax in each state. Each employee might have one state to pay SUTA tax.
Each state in the U.S. may have different forms to file the SUTA state taxes. Check the state websites to file the SUTA tax.
In most states, employers are liable for paying SUTA tax. But, there are exceptions for three states; here are they, along with their employee tax rate:
-
Alaska (0.5%)
-
New Jersey (0.425%)
-
Pennsylvania (0.07%)
Certain organizations, such as Government employers, Religious organizations, and educational institutions are exempt from paying SUTA taxes.
SUTA taxes are reported by using the UI (Unemployment Insurance) wage report form. Every state has a separate form to report the taxes. Employers must file this form for every quarter.
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