State Unemployment Insurance Taxable Wage Base Chart Updated for 2023

State unemployment insurance taxes are based on a percentage of the taxable wages an employer pays. The Federal Unemployment Tax Act (FUTA) requires that each state's taxable wage base must at least equal the FUTA wage base of $7,000 per employee, although most states' wage bases exceed the required amount.

Some states apply various formulas to determine the taxable wage base, others use a percentage of the state's average annual wage, and many simply follow the FUTA wage base.

An updated chart of State Taxable Wage Bases for 2020 to 2023 (as of February 7, 2023) may be downloaded from the APA website. To access the chart from the APA home page select “Compliance” and then “State Unemployment Wage Bases” under “Overview.”

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.

Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.