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© 2022 American Payroll Institute, Inc. State Unemployment Insurance Taxable Wage Bases for 2023 State unemployment insurance (UI) taxes are determined by applying a certain percentage to the taxable wages paid by the employer. 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. The states use varying formulas for determining their taxable wage base, with some tying it by law to the FUTA wage base and others using a percentage of the state’s average annual wage (see The Payroll Source®, §7.2-2). Following is a chart of state taxable wage bases for 2023 and 2022 to help you prepare your payroll operations for 2023 (this updates The Payroll Source®, §7.2-2). States that have changed their wage base for 2023 are in bold. The wage bases of the remaining states will be reported in future issues of PAYSTATE UPDATE as they become available. The remaining wage bases will also be posted on the APA website (select “Compliance” and then “State Unemployment Wage Bases” under “Overview”). State/Territory 2023 2022 State/Territory 2023 2022 Alabama $8,000 $8,000 Nebraska $9,0003 $9,0003 Alaska 42,500 Nevada 40,100 36,600 Arizona 8,000 7,000 New Hampshire 14,000 14,000 Arkansas 10,000 New Jersey 39,800 California 7,000 7,000 New Mexico 30,100 28,700 Colorado 20,4001 17,000 New York 12,3004 12,000 Connecticut 15,0002 15,000 North Carolina 28,000 Delaware 14,500 North Dakota 38,400 District of Columbia 9,000 9,000 Ohio 9,000 9,000 Florida 7,000 7,000 Oklahoma 25,700 24,800 Georgia 9,500 9,500 Oregon 47,700 Hawaii 51,600 Pennsylvania 10,000 10,000 Idaho 46,500 Puerto Rico 7,000 Illinois 12,960 Rhode Island 24,6005 Indiana 9,500 9,500 South Carolina 14,000 14,000 Iowa 36,100 34,800 South Dakota 15,000 15,000 Kansas 14,000 14,000 Tennessee 7,000 Kentucky 10,800 Texas 9,000 9,000 Louisiana 7,700 7,700 Utah 41,600 Maine 12,000 12,000 Vermont 13,500 15,500 Maryland 8,500 8,500 Virgin Islands 30,800 Massachusetts 15,000 15,000 Virginia 8,000 8,000 Michigan 9,500 Washington 67,600 62,500 Minnesota 38,000 West Virginia 9,000 9,000 Mississippi 14,000 14,000 Wisconsin 14,000 14,000 Missouri 10,500 11,000 Wyoming 29,100 27,700 Montana 40,500 38,100 1 Colorado – Wage base will increase to: $23,800 in 2024 $27,200 in 2025 and $30,600 in 2026. 2 Connecticut – Wage base will increase to $25,000 in 2024. 3 Nebraska – $24,000 for employers in highest UI tax rate group (category 20). 4 New York – Wage base will increase to: $15,500 in 2024 $12,800 in 2025 and $13,000 in 2026. Will be adjusted annually beginning in 2027. 5 Rhode Island – $26,100 for employers in the highest UI tax rate group. October 17, 2022 Volume 24 Issue 20