State UI Tax: A Quick Look at Wage Base Changes for 2025

Wage bases for 2025 are rolling out across the country. You can ensure you’re ready to accurately withhold for unemployment insurance (UI) tax. Take a moment to double-check the information for your state.

While most states with rate changes have increased their wage bases for UI tax purposes, so far, one state — Missouri — has decreased its wage base.

Note: In the following list, the 2024 amounts are in parentheses. Also, states with changes are bolded.

State by State

• Alabama – $8,000 ($8,000)
• Alaska – $51,700 (up from $49,700)
• Arizona – $8,000 ($8,000)
• Arkansas – $7,000 ($7,000)
• California – $7,000 ($7,000)
• Colorado – $27,200 (up from $23,800)
• Connecticut – $26,100 (up from $25,000)
• Delaware – $12,500 (up from $10,500)
• Florida – $7,000 ($7,000)
• Georgia – $9,500 ($9,500)
• Hawaii – TBA ($59,100)
• Idaho – TBA ($53,500)
• Illinois – $13,916 (up from $13,590)
• Indiana – $9,500 ($9,500)
• Iowa – $39,500 (up from $38,200)
• Kansas – $14,000 ($14,000)
• Kentucky – TBA ($11,400)
• Louisiana – $7,700 ($7,700)
• Maine – $12,000 ($12,000)
• Maryland – $8,500 ($8,500)
• Massachusetts – $15,000 ($15,000)
• Michigan – TBA ($9,500)
• Minnesota – TBA ($42,000)
• Mississippi – $14,000 ($14,000)
• Missouri – $9,500 (down from $10,000)
• Montana – TBA ($43,000)
• Nebraska – $9,000 ($9,000)
• Nevada – $41,800 (up from $40,600)
• New Hampshire – $14,000 ($14,000)
• New Jersey – $43,300 (up from ($42,300)
• New Mexico – TBA ($31,700)
• New York – $12,800 (up from $12,500)
• North Carolina – TBA ($31,400)
• North Dakota – TBA ($43,800)
• Ohio – $9,000 ($9,000)
• Oklahoma – TBA ($27,000)
• Oregon – $54,300 (up from $52,800)
• Pennsylvania – $10,000 ($10,000)
• Rhode Island – TBA ($29,200)
• South Carolina – $14,000 ($14,000)
• South Dakota – TBA ($15,000)
• Tennessee – TBA ($7,000)
• Texas – $9,000 ($9,000)
• Utah – $48,900 (up from $47,000)
• Vermont – $14,800 (up from $14,300)
• Virginia – $8,000 ($8,000)
• Washington – $72,800 (up from $68,500)
• West Virginia – TBA ($9,521)
• Wisconsin – $14,000 ($14,000)
• Wyoming – $32,400 (up from $30,900)

Under the Federal Unemployment Tax Act (FUTA), states must set a taxable wage base of at least $7,000, which is the current federal wage base for UI. Most states exceed that number, but a few match it.

Completing Form 940

Watch out this year-end when you’re completing the federal Form 940. Pay close attention to Schedule A, because in three jurisdictions, employers will find they owe a higher FUTA rate than elsewhere. The reason? Their credit reduction will be cut.

The three jurisdictions are California, New York and the Virgin Islands.

Those are the places that have outstanding loans with the federal government to fund their unemployment insurance trust funds and pay benefits to out-of-work individuals.

Here’s how rates typically play out: The FUTA tax rate is 6.0% on the first $7,000 of wages, and the credit is 5.4%, bringing the tax rate for most employers to 0.6%.

But once the 0.9% credit reduction is factored in, California and New York will have a credit of only 4.5%, so their FUTA tax rate will be 1.5%.

The situation is much worse in the Virgin Islands. There the FUTA tax credit will reduced by 4.2%.

Meanwhile, Connecticut paid off its loan to the federal government by November 10, 2024, so it’s not on the list anymore.

The deadline for filing Form 940 for TY 2024 is January 31, 2025. However, the IRS provides extra time to employers that deposited all their FUTA tax by the deadline — these employers have until February 10, 2025, to submit the annual form to the IRS.

More Money Due

Employers in New York will also need to be prepared for the state’s Interest Assessment Surcharge in 2025. Billing notices are sent out in June each year.

The Interest Assessment Surcharge is calculated by multiplying wages that are subject to contributions by the rate established for the year. Earlier in 2024, the rate was set at 0.12% — i.e., about $15 per employee — with payments due in the middle of 2024.

The state uses the funds it collects from businesses to pay the interest due to the federal government for its loan.