SUTA 2023 Cost Changes

SUTA 2023 Cost Changes

Unemployment insurance tax rate and wage base updates listed below have been announced. Nonprofit, governmental, and tribal entities should take a closer look at what these changes could mean for their budget. While for-profit entities are bound by these changes and requirements, nonprofit, governmental and tribal entities have options.

Note: Nonprofit, governmental, and tribal entities are exempt from FUTA (Federal Unemployment Tax Act).

Click here for 2022 SUTA cost factors.

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Alabama

SUTA rates for 2023 range from 0.2% to 5.4%, while the unemployment taxable wage base remains at $8,000.

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Alaska

SUTA 2023 employer rates range from 1% to 5.4%. Alaska’s employee rate decreased to 0.51% (down from 0.56% in 2022). The unemployment taxable wage base for 2023 is $47,100 (up from $45,200).

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Arizona

SUTA rates in 2023 range from 0.07% to 18.78%, while the the new employer rate remains 2%. For the first time in decades, Arizona’s wage base increased from $7,000 to $8,000.

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Arkansas

SUTA rates for employers range from 0.3% to 14.2% and the wage base is set at $7,000 for 2023.

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California

No rate changes were reported in California, with the wage base holding at $7,000.

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Colorado

Colorado’s wage base increased from $17,000 to $20,400 in 2023 and will continue to increase to $23,800 in 2024, $27,200 in 2025, and $30,600 in 2026. Each year thereafter, the wage base will be adjusted by the change in Colorado’s average weekly earnings.

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Connecticut

A new law has been introduced that will increase the taxable wage base to $25,000 beginning January 1, 2024 and expand the max rate up to 10%. 2023 SUTA rates range from 1.7% to 6.6%. Connecticut’s new employer rate dropped to 2.8% (down from 3.0%). The fund solvency tax is reduced to 1.2% (down from 1.4%). The 2023 wage base is holding at $15,000.

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Delaware

2023 SUTA rates range from 0.30% to 5.60% for employers in Delaware. The taxable wage base decreased to $10,500. The maximum weekly benefit amount will increase from $400 to $450 for new claims filed on or after April 2, 2023.

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Florida

As of January 2023, no rate changes were reported in Florida, with the wage base holding at $7,000.

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Georgia

2023 SUTA rates range from 0.06% to 8.10% in Georgia, with the wage base holding at $9,500. Effective January 2024, Georgia will reinstate the 0.06% administration assessment tax through 2026.

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Hawaii

The SUTA rate for new employers increased to 4% (up from 3%). The maximum SUTA rate for experienced employers Increased to 6.2% (up from 5.8%). Hawaii’s unemployment taxable wage base increased to $56,700 for 2023 (up from $51,600). Hawaii’s maximum weekly benefit amount that a former employee can collect in unemployment increased to $763 (up from $695).

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Idaho

Idaho’s wage base increased to $49,900 (up from $46,500 in 2022). SUTA rates for employers in Idaho include a variety of surtaxes, but the net tax rates range from 0.207% to 0.691% for positive rated employers, while the net tax rates for negative-rated employers range from 1.245% to 5.4% in 2023. An administrative reserve-fund surtax (ranging from 0.03519% to 0.32912%) and a workforce development training-fund surtax (ranging from 0.00621% to 0.05808%) may also be charged.

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Illinois

SUTA rates range from 0.85% – 8.65% for 2023. The Building Fund and State Experience Factor rates that make up SUTA rates in Illinois both increased from 0.525% to 0.55% and from 111% to 127%, respectively. The taxable Wage Base also increased from $12,960 to $13,271. Weekly benefit amounts are also increased 6.5%.

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Indiana

Unemployment tax rates range from 0.50% to 7.40% in 2023 and through 2025. The wage base holds at $9,500.

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Iowa

SUTA rates range from 0% to 7% in 2023. The unemployment taxable wage base increased from $34,800 to $36,100.

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Kansas

2023 SUTA rates range from 0.17% to 6.40% for employers in Kansas, with the wage base holding at $14,000.

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Kentucky

Unemployment tax rates range from 0.30% to 9.00%. A 0.075% Service Capacity Upgrade Fund assessment is included in employer rates, but those tax contributions will not be made to employers’ reserve accounts. The taxable wage base increased from $10,800 to $11,100.

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Louisiana

SUTA rates for Louisiana employers range from 0.09% to 6.20%. The 2023 wage base remains at $7,700.

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Maine

2023 SUTA will be collected under Maine’s unemployment tax schedule “A”, the lowest allowed, ranging from 0.22% to 5.69%. SUTA rates include a 0.07% competitive-skills scholarship fund assessment and a 0.15% unemployment program administrative fund assessment (up from 0.14%). The 2023 wage base is holding at $12,000.

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Maryland

2023 SUTA rates range from 1.0% to 10.5%, with the wage base holding at $8,500.

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Massachusetts

Massachusetts’s 2023 unemployment tax rates range from 0.56% to 8.62%. Experienced employers also pay an additional COVID-19 Recovery Assessment rate ranging from 0.708% to 10.896%. The unemployment taxable wage base continues to hold at $15,000.

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Michigan

Michigan’s 2023 SUTA rates range from 0.6% to 10.3%, with the wage base holding at $9,500.

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Minnesota

SUTA rates for Minnesota employers range from 0.2% to 9% (including a base tax rate of 0.10%) in 2023. The wage base increased to $40,000 (up from $38,000 in 2022).

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Mississippi

Mississippi’s 2023 SUTA rates range from 0.20% to 5.60%, with the wage base holding at $14,000.

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Missouri

2023 rates range from 0.0% to 6.975% for employers in Missouri. The wage base decreased from $11,000 to $10,500 in 2023.

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Montana

SUTA rates range from 0.13% to 6.3% in 2023. The administrative fund tax remains 0.13% for employers with a 0.0% SUTA rate and 0.18% for all other employers. The 2023 wage base increased from $38,100 to $40,500.

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Nebraska

SUTA rates in 2023 range from 0% to 5.4%, with the wage base holding at $24,000. The maximum weekly benefit amount increased to $514.

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Nevada

SUTA rates for experienced employers range from 0.3%-5.4% in 2023, while the new employer rate is set at 3%. The unemployment taxable wage base increased to $40,100 (up from $36,600).

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New Hampshire

For the 2nd quarter of 2023: the fund balance reduction is 1% for positive-rated employers (up from 0.5% in the 1st quarter of 2023), the inverse rate surcharge assigned to negative-rated employers is 0.5% (1% in the 1st quarter of 2023), and the emergency power surcharge is 0% (no change from the 1st quarter of 2023). The wage base will remain at $14,000.

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New Jersey

New Jersey’s July 2022-June 2023 employer unemployment tax rates were issued on August 24, 2022. They now range from 0.6% to 6.4%. Rates will range from 1.2% to 7.0% for fiscal year 2024 (July 1, 2023 through June 30, 2024), unless calculations call for a lesser rate range. The 2023 taxable wage base increased to $41,100. New Jersey’s unemployment tax rate for employees is 0.425%, unchanged from 2022.

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New Mexico

SUTA rates range from 0.33% to 5.4% for employers in New Mexico. The taxable wage base increased to $30,100, up from $28,700.

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New York

New York’s SUTA tax rates range from 2.1% to 9.9%. The unemployment wage base has increased to $12,300 and is scheduled to increase every year through 2026.

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North Carolina

SUTA 2023 rates range from 0.06% to 5.76% for experienced employers, while the new employer rate is set at 1%. The taxable wage base is $29,600 (up from $28,000).

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North Dakota

North Dakota’s 2023 SUTA rates range from 0.08% to 9.97%, with the wage base increasing to $40,800 (up from $38,400 in 2022).

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Ohio

SUTA rates in Ohio range from 0.8% to 10.3% in 2023, with the taxable wage base holding at $9,000.

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Oklahoma

SUTA rates range from 0.3% to 9.2% for 2023 and the wage base increased to $25,700. The maximum weekly benefit amount also increased to $493.

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Oregon

2023 SUTA rates for experienced Oregon employers range from 0.7% to 5.4%. The unemployment taxable wage base increased to $50,900 (up from $47,700 in 2022).

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Pennsylvania

SUTA rates for experienced employers range from 1.419% to 10.3734% in 2023. Experience rates include a solvency surcharge and an additional contribution rate. Both of these rates increased in 2023. The solvency surcharge rate increased to 9.2% (up from 5.4% in 2022) and the additional contributions rate increased to 0.6% (up from 0.5% in 2022). The tax rate for employees also increased to 0.07% (up from 0.06% in 2022), with the wage base holding at $10,000.

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Puerto Rico

SUTA rates in Puerto Rico range from 3.4% to 5.4% in 2023, with the taxable wage base holding at $7,000.

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Rhode Island

2023 SUTA rates for experienced employers in Rhode Island range from 1.1% to 9.7%. The unemployment taxable wage bases is $29,700 for employers with the highest SUTA rate and $28,200 for all other employers.

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South Carolina

SUTA rates for range from 0.06% to 5.46%, with the wage base holding at $14,000.

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South Dakota

Unemployment tax rates range from 0% to 9.85%, with the wage base holding at $15,000.

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Tennessee

SUTA rates range from 0.01% to 10.0%, with the wage base holding at $7,000.

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Texas

SUTA rates for 2023 range from 0.23% to 6.23% with the wage base holding at $9,000. SUTA rates include a 0.13% replenishment tax as well as a 0.1% employment training and investment assessment.

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Utah

SUTA rates for Utah employers range from 0.3% to 7.3% (including a social tax rate of 0.3%). The taxable wage base for 2023 increased from $41,600 in 2022 to $44,800. The maximum weekly benefit amount also increased to $712.

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Vermont

Effective from July 1, 2022, to June 30, 2023, unemployment tax rates range from 0.4% to 5.4%. The 2023 wage base decreased to $13,500.

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Virginia

Virginia’s 2023 SUTA rates range from 0.13% to 6.23%, with the wage base holding at $8,000.

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Washington

Unemployment tax rates range from 0.27% to 6.03% and the maximum social tax is set at 0.70%. Washington’s 2023 increased to $67,600.

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Washington, D.C.

2023 SUTA rates range from 2.10% to 7.60% and the taxable wage base remains unchanged at $9,000.

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West Virginia

As of January 2023, SUTA rates range from 1.5% to 8.5% in West Virginia, with the wage base holding at $9,000.

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Wisconsin

SUTA rates range from 0.00% to 12.00%, with the wage base holding at $14,000.

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Wyoming

SUTA rates range from 0.0% to 8.5% in Wyoming. The wage base increased to $29,100.

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