Tennessee · 2026 planning data
Tennessee SUTA rate and employer cost for 2026
Tennessee's sourced 2026 unemployment-insurance model uses a taxable wage base of $7,000 per employee and a 2.70% standard new-employer rate. The assigned rate can differ after an acquisition, experience rating, industry classification, or state assessment.
Calculate a Tennessee estimate
How the Tennessee 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 $7,000, the planning calculation is:
min(UI-taxable wages, $7,000) × 2.70% = up to $189The standard sourced new-employer rate in the EmployerCost model is 2.70%. A transferred experience account, special industry rule, assessment, or employer notice can produce a different total.
What changes the real employer cost
- Tennessee's current standard new-employer rate is 2.70% on the first $7,000 of wages.
- Experienced rates can range from 0.01% to 10.00% and depend on the trust-fund premium table in force.
- 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.
Tennessee employer cost questions
What is the Tennessee SUTA wage base for 2026?
The sourced taxable wage base used by EmployerCost is $7,000 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 Tennessee employer use?
The standard sourced new-employer rate in the EmployerCost model is 2.70%. A transferred experience account, special industry rule, assessment, or employer notice can produce a different total.
Is SUTA the full cost of a Tennessee employee?
No. Start with salary, then add employer FICA, FUTA, SUTA, workers compensation, benefits, and payroll administration. The Tennessee calculator keeps uncertain items as ranges.
Official sources
- Tennessee DOL 2026 employer premium-rate guidance
- 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.