Texas · 2026 planning data
Texas employer cost calculator
Texas's 2026 unemployment tax has a $9,000 taxable wage base per employee. A qualifying new employer uses a 2.70% rate until it has four chargeable quarters; an acquired business may inherit different experience.
How the Texas UI line is estimated
For a qualifying new employer, the maximum 2026 Texas UI amount at the new-employer rate is $243 per employee before considering experience transfers or a different assigned notice:
min(UI-taxable wages, $9,000) × 2.70% = up to $243The effective 2026 range for rated employers is 0.32% to 6.32%. The assigned rate shown in the Texas Unemployment Tax System controls. Governmental and reimbursing employers follow different mechanics.
What this estimate does not settle
- Federal Social Security, Medicare, and FUTA remain separate employer costs.
- Texas has no state individual income tax withholding, but that does not remove employer unemployment tax.
- Workers compensation may be optional for some private employers, yet contracts and risk policies can still require it.
- Benefits, payroll software, registrations, and HR administration remain employer-specific.
Use the calculator's custom SUTA field when the Texas Workforce Commission has assigned a rate other than the 2.70% new-employer rate.
Official sources
- Texas Workforce Commission — tax rates and new employers
- Texas Workforce Commission — 2026 rate components and effective range
Verified against official state sources July 13, 2026.
General planning information only. Not payroll, tax, legal, insurance, or HR compliance advice.