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Texas · 2026 planning data
Texas SUTA rate 2026: new-employer rate and wage base
The Texas SUTA rate for 2026 is 2.70% for qualifying new employers. Experience-rated employers have effective rates from 0.32% to 6.32%. Both apply to the first $9,000 of taxable wages per employee per calendar year. Texas calls this unemployment insurance (UI) tax; use your Texas Workforce Commission (TWC) assigned rate when available.
UI wage base$9,000
New employer rate2.70%
Effective range0.32%–6.32%
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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.
Texas SUTA wage base 2026: annual tax examples
The $9,000 wage base is an annual cap per employee, not a quarterly allowance. These examples use the 2.70% new-employer rate for the full calendar year:
| Annual wages before cap | Wages subject to SUTA | Annual Texas SUTA |
|---|---|---|
| $5,000 | $5,000 | $135 |
| $9,000 | $9,000 | $243 |
| $60,000 | $9,000 | $243 |
Once an employee reaches the annual wage base, additional wages do not increase that employee's Texas SUTA for the year. The $243 example covers Texas unemployment tax only; it is not the employee's total payroll tax or employer cost.
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.
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Texas SUTA rate questions
What is the Texas SUTA rate for 2026?
The 2026 entry-level rate is 2.70% for qualifying new employers in every industry group. Experience-rated employers have effective rates from 0.32% to 6.32%. An acquired business may receive a computed rate based on transferred experience; your TWC assigned rate controls.
Is the $9,000 Texas SUTA wage base annual or quarterly?
It is annual: the first $9,000 of UI-taxable wages per employee per calendar year. It does not restart each quarter.
Is $243 the maximum Texas SUTA tax for every employer?
No. $243 is $9,000 multiplied by the 2.70% new-employer rate. At the 2026 effective minimum of 0.32%, tax on $9,000 is $28.80; at the 6.32% maximum rate it is $568.80. Use your assigned rate and actual taxable wages.
How long does the Texas new-employer unemployment rate apply?
A newly liable employer keeps its predetermined rate until it has four chargeable quarters, then TWC assigns an interim rate. Four chargeable quarters are not necessarily the first four calendar quarters of the business. Check your TWC notice before changing your estimate.
Official sources
- Texas Workforce Commission — tax rates and new employers
- Texas Workforce Commission — 2026 rate components and effective range
Texas SUTA rates and wage base verified against TWC sources September 27, 2026.
General planning information only. Not payroll, tax, legal, insurance, or HR compliance advice.