Indiana · 2026 planning data
Indiana SUTA rate and employer cost for 2026
Indiana's sourced 2026 unemployment-insurance model uses a taxable wage base of $9,500 per employee and a 2.50% standard new-employer rate. The assigned rate can differ after an acquisition, experience rating, industry classification, or state assessment.
How the Indiana SUTA line is estimated
State unemployment tax applies only up to the annual UI wage base for each employee. For an employee earning at least $9,500, the planning calculation is:
min(UI-taxable wages, $9,500) × 2.50% = up to $238The standard sourced new-employer rate in the EmployerCost model is 2.50%. A transferred experience account, special industry rule, assessment, or employer notice can produce a different total.
What changes the real employer cost
- Indiana's standard new-employer rate is 2.50% on the first $9,500 of wages; the published experienced range is 0.50% to 7.40%.
- Government employers start at 1.60%; new construction uses the lesser of 4.00% or the construction-industry average. Delinquency adds two percentage points.
- Employer Social Security, Medicare, and FUTA remain separate federal cost lines.
- Workers compensation depends on class code, carrier, payroll exposure, and employer history.
- Health benefits, retirement contributions, payroll software, and HR administration depend on the employer's choices.
Use the calculator's custom SUTA field whenever an official notice supplies a different rate. Read the SUTA rate guide and employer payroll tax guide before relying on a planning result.
Indiana employer cost questions
What is the Indiana SUTA wage base for 2026?
The sourced taxable wage base used by EmployerCost is $9,500 per employee. Wages above that cap are not included in this SUTA line, but can still affect Social Security, Medicare, benefits, workers compensation, and other costs.
What rate should a new Indiana employer use?
The standard sourced new-employer rate in the EmployerCost model is 2.50%. A transferred experience account, special industry rule, assessment, or employer notice can produce a different total.
Is SUTA the full cost of an Indiana employee?
No. Start with salary, then add employer FICA, FUTA, SUTA, workers compensation, benefits, and payroll administration. The Indiana calculator keeps uncertain items as ranges.
Official sources
- Indiana DWD employer handbook and January 2026 U.S. DOL schedule
- U.S. Department of Labor — Significant Provisions of State UI Laws, effective January 2026
Verified against official sources July 30, 2026.
General planning information only. Not payroll, tax, legal, insurance, or HR compliance advice.