For example, in Ohio, new construction employers pay a SUTA tax rate of 5.6 percent (as of 2023), while the new employer SUTA tax rate is 2.7 percent. Here are the new employer tax rate and the standard employer tax rate ranges for each state.

State taxes vary — including the State Unemployment Tax Act (SUTA) contribution rates. You should be aware of current rates and understand how the tax is calculated. What is SUTA tax? SUTA is a payroll tax required from employers. It’s also known as “state unemployment insurance” (SUI).

SUTA Rates by the US States. The table below shows the state wage base SUTA limit and the SUTA rate for both new and experienced employers for each state in 2023.

SUTA rates for 2023 range from 0.2% to 5.4%, while the unemployment taxable wage base remains at $8,000. SUTA 2023 employer rates range from 1% to 5.4%. Alaska’s employee rate decreased to 0.51% (down from 0.56% in 2022). The unemployment taxable wage base for 2023 is $47,100 (up from $45,200).

State unemployment tax assessment (SUTA) is based on a percentage of the taxable wages an employer pays. Some states apply various formulas to determine the taxable wage base, others use a percentage of the state’s average annual wage, and many simply follow the FUTA wage base.