2025 state unemployment insurance taxable wage bases

09 January 2025

27 jurisdictions have a flexible state unemployment insurance (SUI) wage base, meaning that the wage base can increase each year. This is an increase from 26 jurisdictions in 2024. In the remaining jurisdictions, the wage base is set, requiring legislation to change it.
Colorado had the highest dollar rise in its wage base with an increase of $3,400 from 2024.
Michigan, Missouri and West Virginia are the only jurisdictions to lower their SUI wage bases for 2025.
Two states, Nebraska and Rhode Island, assign a higher SUI wage base to employers with a high claims rate.

SUI trust funds are largely financed by employer contributions (in Alaska, New Jersey and Pennsylvania employees also make contributions). States are required to maintain an SUI taxable wage base of no less than the limit set under the Federal Unemployment Tax Act (FUTA). The 2025 FUTA wage limit of $7,000 has remained unchanged since 1983, despite increases in the federal minimum wage and annual cost-of-living adjustments over the last 42 years.

Some states are conservative in their approach to maintaining adequate SUI trust fund reserves. Consequently, the SUI wage base is flexible in those states, meaning it is indexed to the average wage and/or or varies based on the trust fund balance. For 2025, 27 jurisdictions have a flexible wage base. (EY survey of states for 2025; US Department of Labor, Comparison of State Unemployment Laws)

2025 state unemployment taxable wage bases

Following is the list of the 2025 SUI taxable wage bases as of December 31, 2024 (as compared to 2024) and employee SUI withholding rates, if applicable.

SUI taxable wage bases, 2024 v. 2025 (as of December 31, 2024)
State	2024 $	2025 $	Increase or decrease	2025 employee contribution rates
Alabama	8,000	8,000
Alaska	49,700*	51,700*	2,000	Employee SUI withholding rate is 0.50% on wages up to $51,700
Arizona	8,000	8,000
Arkansas**	7,000*	7,000*
California	7,000	7,000
Colorado**	23,800	27,200	3,400
Connecticut**	25,000*	26,100*	1,100
Delaware**	10,500*	12,500	2,000
District of Columbia	9,000	9,000
Florida	7,000	7,000
Georgia	9,500	9,500
Hawaii	59,100*	62,000*	2,900
Idaho	53,500*	55,300*	1,800
Illinois	13,590*	13,916*	326
Indiana	9,500	9,500
Iowa	38,200*	39,500*	1,300
Kansas **	14,000	14,000
Kentucky**	11,400	11,700	300
Louisiana	7,700*	7,700*
Maine	12,000	12,000
Maryland	8,500	8,500
Massachusetts	15,000	15,000
Michigan**	9,500	9,000	(500)
Minnesota	42,000*	43,000*	1,000
Mississippi	14,000	14,000
Missouri **	10,000*	9,500*	(500)
Montana	43,000*	45,100*	2,100
Nebraska **	9,000/24,000	9,000/24,000
Nevada	40,600*	41,800*	1,200
New Hampshire	14,000	14,000
New Jersey**	42,300*	43,300*	1,000	Employee SUI withholding rate is 0.3825% on wages up to $43,300
New Mexico	31,500*	33,200*	1,700
New York**	12,500	12,800	300
North Carolina	31,400*	32,600*	1,200
North Dakota	43,800*	45,100*	1,300
Ohio	9,000	9,000
Oklahoma	27,000*	28,200*	1,200
Oregon	52,800*	54,300*	1,500
Pennsylvania	10,000	10,000		Employee SUI withholding is 0.07% on total wages
Puerto Rico**	7,000	7,000
Rhode Island**	29,200/30,700*	29,800/31,300*	600
South Carolina	14,000	14,000
South Dakota	15,000	15,000
Tennessee**	7,000*	7,000
Texas	9,000	9,000
Utah	47,000*	48,900	1,900
Vermont	14,300*	14,800*	500
Virginia	8,000	8,000
Virgin Islands	31,000*	31,100*	100
Washington	68,500*	72,800*	4,300
West Virginia**	9,521*	9,500*	(21)
Wisconsin	14,000	14,000
Wyoming	30,900*	32,400*	1,500
FUTA	7,000	7,000

Legend

* The taxable wage base is adjusted annually for inflation

** See applicable footnote below.

EST: Estimated 2025 wage base

TBD: 2025 wage base was not available as of the time of this printing

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Arkansas

Under HB 1430 (2023 Act 196), effective January 1, 2024, the SUI taxable wage is $7,000 when the UI Trust Fund is in excess of $600 million as of June 30 of the most recently completed state fiscal year and increases to the taxable wage base are limited to $2,000 each year. (Ark. Code Ann. Section 11-10-215.)

Colorado

Legislation in 2020 (SB 20-207) held the SUI taxable wage base at $13,600 for calendar year 2021 with incremental increases each year thereafter until it reaches $30,600 in 2026. The SUI taxable wage base is $17,000 in 2022, $20,400 in 2023, $23,800 in 2024, and $27,200 in 2025. After 2026, the taxable wage base will be adjusted by changes in the annual average weekly wage.

Connecticut

HB 6633/Public (Act 21-200), enacted in 2021, increased the SUI taxable wage base for calendar year 2024 to $25,000, up from $15,000. Beginning with calendar year 2025, the taxable wage base is indexed each year for inflation.

Delaware

H.B. 433 enacted in 2024 reduces new employer SUI tax rates and phases in a permanent taxable wage base over three years- $12,500 for calendar year 2025, $14,500 for calendar year 2026, and $16,500 for calendar year 2027 and thereafter

Kansas

Under H.B. 2570 and starting in 2026, the current fixed SUI wage base of $14,000 will be adjusted annually as a percentage of the statewide average annual wage. The percentage will increase progressively through 2030.

Kentucky

The taxable wage base is expected to continue to increase by $300 each calendar year until it reaches $12,000.

Michigan

The law provides for a reduced taxable wage base of $9,000 if the Trust Fund balance reaches or exceeds $2.5 billion for two consecutive quarters; otherwise, the wage base is $9,500. (Michigan taxable wage base.)

Missouri

The taxable wage base can be increased by $1,000 or decreased by $500 for any year, depending on the average balance of the Unemployment Compensation Trust Fund of the four preceding calendar quarters. In no event shall the state taxable wage base increase beyond $13,000 or decrease to less than $7,000. (RSMO Section 288.036(2).)

Nebraska

Legislation enacted in 2019 (LB 428) increases the SUI taxable wage base to $24,000 for employers assigned the maximum rate. The taxable wage base remains $9,000 for all other employers.

New Jersey

Employee contribution rate includes the Workforce Development/Supplemental Workforce Funds surcharge.

New York

The taxable wage base will continue to increase as follows: $12,500 in 2024; $12,800 in 2025; $13,000 in 2026; for each year thereafter, computed as 16% of the state's average annual wage.

Puerto Rico

Legislation from 2017 grants the territory's Secretary of Labor the discretion to increase the taxable wage base to as much as $10,500 if deemed necessary.

Rhode Island

Negative-balanced employers assigned the maximum tax rate will have a taxable wage base that is $1,500 higher than other employers.

Tennessee

Under Tennessee UI law, if the UI trust fund balance on December 31 of any year is less than $900 million, the taxable wage base is $9,000. If the trust fund balance is above $900 million, but less than $1 billion on December 31, the taxable wage base is $8,000. If the trust fund balance exceeds $1 billion on December 31, the taxable wage base is $7,000.

West Virginia

Under current law, and effective April 2009, the wage base is $12,000, provided that (1) when the moneys in the unemployment fund reach $220 million on February 15 of any year, the wage base thereafter will be reduced to $9,000, and (2) each year thereafter the wage base shall increase or decrease by the same percentage that the state's average wage increases or decreases. (SB 246 (2009); W. Va. Code Section 21A-1A-28; Code of State Rules Section 83-1-7 .1.)

The wage base is lowered from $9,521 to $9,500 for 2025. (West Virginia SUI rate notice letter, November 2024.)

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Contact Information

For additional information concerning this Alert, please contact:

Workforce Tax Services - Employment Tax Advisory Services

Kristie Lowery | kristie.lowery@ey.com
Ken Hausser | kenneth.hausser@ey.com
Debera Salam | debera.salam@ey.com

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2025-0171