Federal and State Payroll Tax Rates 2026: The Complete Employer Reference

Every U.S. employer pays the same federal payroll tax rates regardless of state. What changes from state to state is the SUI rate and wage base, the state income tax rate and structure, and whether the state has a paid family leave or disability insurance program layered on top. This page assembles all of those numbers in one place for 2026.

The tables below are designed to be bookmarked and shared with payroll staff, accountants, and HR managers who need a quick year-start reference. State SUI, leave-program and income tax figures were checked against each state agency’s official 2026 publications in October 2026; confirm current rates with each state agency before your first payroll of the year.

Federal FICA Rates — Social Security and Medicare

The Federal Insurance Contributions Act (FICA) establishes two mandatory payroll taxes that apply to all covered wages in every state. Both the employer and employee pay FICA taxes; the employer withholds the employee share and remits the combined amount to the IRS.

Social Security Wage Base History

The Social Security taxable wage base adjusts annually based on increases in the national average wage index. Recent history:

For 2026, the maximum annual Social Security tax per employee (combined employer + employee) is $22,878 ($184,500 × 12.4%). The maximum employee Social Security withholding is $11,439. Once an employee's wages from a single employer reach $184,500 in the calendar year, Social Security taxes stop for that employee with that employer.

Additional Medicare Tax

The 0.9% Additional Medicare Tax applies to employee wages exceeding $200,000 in a calendar year from a single employer. Employers must begin withholding this tax in the pay period when cumulative wages to that employee pass $200,000, regardless of the employee's filing status or total income from other sources. The employer does not pay a matching 0.9% — this is an employee-only tax. Employees whose additional withholding turns out to be insufficient (due to multiple jobs or a high-income spouse) reconcile on their individual tax return.

FUTA — Federal Unemployment Tax

FUTA is an employer-paid tax that funds federal unemployment insurance administration. Employees pay nothing toward FUTA.

FUTA Credit Reductions

States that borrow from the federal unemployment trust fund to pay benefits lose part of the 5.4% FUTA credit. Each year a state remains in debt past November 10, it loses an additional 0.3% credit. The IRS publishes an annual FUTA credit reduction schedule each November. Employers in affected states pay more than the net 0.6% FUTA rate.

FUTA deposits follow the IRS quarterly deposit schedule. If cumulative FUTA liability for a quarter exceeds $500, the employer must make a deposit before the end of the following month. If cumulative liability is $500 or less, it can roll to the next quarter.

Federal Income Tax Withholding

Federal income tax withholding depends on the employee's W-4 elections and cannot be stated as a single rate. Key 2026 points:

• Employees hired after January 1, 2020 use the redesigned W-4 (no allowances system)
• Employees hired before 2020 may keep their old W-4 on file unless they choose to update
• The 2026 federal income tax brackets are adjusted annually for inflation by the IRS (published in Revenue Procedure each fall)
• Supplemental wages (bonuses, commissions): employers may withhold at the optional flat supplemental rate of 22% if wages are identified separately from regular wages
• Mandatory flat rate for supplemental wages over $1,000,000: 37%

All 50 States: SUI New-Employer Rates and Wage Bases (2026)

State unemployment insurance (SUI) is employer-paid in most states. The rates below are the new-employer rate and taxable wage base. Experienced employers receive experience-rated rates that may be lower or higher than the new-employer rate. Confirm current rates with each state agency before the first payroll of the year, as some states adjust their wage base annually.

All 50 States: Income Tax Type and Top Rate (2026)

State income tax structures vary widely. Nine states have no income tax on wages. Fourteen states use a single flat rate (Indiana adds county taxes, and Massachusetts adds a 4% surtax on very high incomes), and Ohio taxes income above $26,050 at a flat 2.75%. The rest use graduated brackets where the rate increases with income. The "top rate" below is the highest marginal rate for a single filer, including any millionaire surtax. A few states withhold on a different schedule than their income tax rates; the notes flag those.

States with Paid Family Leave or Disability Insurance Programs

A growing number of states require employers or employees to contribute to state-run paid family leave (PFL) or state disability insurance (SDI) programs. These are separate from income tax withholding and SUI. The table below summarizes states with mandatory programs as of 2026. Contribution rates change annually — verify with each state's program administrator.

Virginia has also enacted a paid family and medical leave program; contributions begin April 1, 2028. Verify current program status and contribution rates with each state's labor or workforce agency.

Frequently Asked Questions

What is the Social Security wage base for 2026?

The Social Security (OASDI) taxable wage base is $184,500 per employee. The employer and employee each pay 6.2% on wages up to this amount. Maximum combined FICA Social Security tax per employee: $22,878. Wages above $184,500 are still subject to Medicare tax (no wage cap).

What is the FUTA rate in 2026?

The gross FUTA rate is 6.0% on the first $7,000 per employee. Employers who pay state SUI on time receive a 5.4% credit, reducing the net FUTA rate to 0.6%. Maximum annual FUTA per employee with full credit: $42. States with outstanding federal loans lose part of the credit — check the IRS FUTA credit reduction list each November.

Which states have no state income tax in 2026?

Nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Employers in these states withhold federal income tax only. Note that Washington, Tennessee, and New Hampshire have other state-level employer obligations (PFML/WA Cares for Washington; SUI for all).

Which state has the highest SUI wage base in 2026?

Washington State at $78,200, the highest SUI taxable wage base in the country. This is more than 10 times the federal FUTA base ($7,000). Other high-base states: Hawaii ($64,500), Idaho ($58,300), Oregon ($56,700), Alaska ($54,200).

What is the Medicare tax rate in 2026?

Standard Medicare rate: 1.45% employer + 1.45% employee on all wages (no cap). Additional Medicare Tax: 0.9% employee-only on wages over $200,000 from a single employer. Employers must begin withholding the additional 0.9% in the pay period wages first exceed $200,000 — there is no employer match on the additional 0.9%.

What states have paid family leave programs in 2026?

States with mandatory PFL or SDI programs collecting contributions in 2026 include California, Colorado, Connecticut, Delaware, Hawaii, Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, and Washington. Washington also has the unique WA Cares Fund (long-term care). Maryland contributions begin January 1, 2027, and Virginia contributions begin April 1, 2028 — verify current program status in any state where you have employees.