Note: The RSF is not an additional cost on top of your quoted rate — it's already included within the total rate shown above. This breakdown simply shows how your total rate is composed.
Get the key numbers you need for New York unemployment tax calculations. All data verified against official NY DOL sources.
| Annual Wage | Employer Type | Rate | Taxable Amount | Total Tax |
|---|---|---|---|---|
| $50,000 | New Employer | 4.1% | $17,600 | $721.60 |
| $10,000 | New Employer | 4.1% | $10,000 | $410.00 |
| $100,000 | Experienced (Low) | 1.7% | $17,600 | $299.20 |
| $50,000 | Experienced (Max) | 9.5% | $17,600 | $1,672.00 |
| $10,000 | Experienced (Medium) | 4.1% | $10,000 | $410.00 |
Note: All examples include the 0.075% Re-employment Service Fund assessment. Your actual rate depends on your experience rating and may differ from these examples.
The 2026 New York SUTA taxable wage base is $17,600. This is the maximum amount of each employee's annual wages that is subject to New York State Unemployment Insurance (UI) tax. If an employee earns more than $17,600 in 2026, you only pay SUTA tax on the first $17,600. If they earn less, you tax their full wages.
This figure represents a significant increase from 2025's $12,800 wage base — a jump of $4,800, or 37.5%. The increase reflects a legislative overhaul: New York fully repaid its federal Unemployment Insurance Trust Fund loan and, at the same time, moved the wage base onto a new statutory indexing formula.
Understanding the wage base is essential for accurate payroll tax calculation, quarterly filing (NYS-45), and avoiding underpayment penalties. The wage base applies to every liable employer in New York, regardless of industry or business size. Explore our other New York tax and payroll tax calculators to complete your employer payroll picture.
Historically, New York's SUTA wage base was adjusted periodically through legislation. In 2025, the base was $12,800. Beginning with 2026, the wage base permanently adjusts each January 1 to 18% of the New York State average annual wage, rounded up to the nearest $100. The 2026 figure of $17,600 is the first result of this new formula, not a separate one-time bump above it.
The state average annual wage used in the formula is calculated from the four most recent quarters of published New York State quarterly census of employment and wages data, and the wage base can never be reduced from the prior year's level.
Employers pay NY SUTA tax — not employees. The tax is an employer-paid unemployment insurance contribution calculated as a percentage of each employee's taxable wages up to the wage base. Employees do not have SUTA deductions taken from their paychecks.
The tax funds unemployment benefits for workers who lose their jobs through no fault of their own. New York employers file and pay SUTA taxes quarterly using Form NYS-45. For the employee-withholding side of your payroll, see the NY supplemental wage tax withholding calculator.
SUTA isn't the only employer-paid payroll tax in New York. Employers in the Metropolitan Commuter Transportation District also owe the MCTMT on their payroll expense — estimate that liability with our NY MCTMT tax calculator.
If you've searched for the 2026 NY SUTA wage base, you may have seen two different numbers: $13,000 and $17,600. Only one of these is correct.
Use $17,600 for every 2026 NY SUTA calculation, budgeting projection, and payroll system configuration. Relying on $13,000 instead will cause you to underpay and under-withhold, which can trigger penalties, interest, and problems reconciling your quarterly NYS-45 filings.
New York's wage base jumped sharply for 2026 — from $12,800 to $17,600 — after the state repaid its federal UI loan and switched the wage base onto the new 18%-of-average-wage indexing formula. During that transition, some payroll blogs and aggregator sites published a lower $13,000 figure. That number does not appear on any official NY DOL or NYS-45 wage base publication, so we could not confirm it against an official source. It most likely stems from an outdated or mis-transcribed third-party estimate rather than a second, legitimate component of the wage base.
Always confirm directly with the NY DOL's official NYS-45 wage base page before relying on any third-party figure — official NY DOL sources are the only authoritative reference for your filings.
Using the wrong figure changes your tax liability substantially. Here's the impact for a company with 10 employees at the new employer rate (4.1%) if the incorrect $13,000 figure were mistakenly used instead of the official $17,600:
| Base Used | Rate | Tax Per Employee | Total Tax (10 Employees) |
|---|---|---|---|
| $13,000 (incorrect — do not use) | 4.1% | $533.00 | $5,330.00 |
| $17,600 (official NY DOL figure) | 4.1% | $721.60 | $7,216.00 |
| Underpayment if $13,000 is mistakenly used | $1,886.00 | ||
Underpaying based on an inaccurate wage base can lead to penalties, interest, and complications with your FUTA credit. Always use the official $17,600 figure for your 2026 NY SUTA calculations.
Calculating New York SUTA tax is straightforward once you know your rate and understand the wage base. Follow these four steps to determine your exact liability per employee.
Your rate depends on your employer type and experience rating. New employers pay 4.1%. Experienced employers pay between 1.7% and 9.5%. If you don't know your rate, check your most recent NYS-45 filing or log in to the NY DOL employer portal.
Take each employee's annual gross wages and apply the $17,600 cap. If their wages are less than $17,600, the full amount is taxable. If they earn more, only the first $17,600 is taxable.
Taxable wage per employee × your SUTA rate (including RSF) = tax per employee.
Tax per employee × number of employees = total quarterly/annual SUTA liability.
Let's walk through a full example for a New York business with 15 employees earning an average of $60,000 per year.
| Step | Calculation | Result |
|---|---|---|
| 1. Rate | New employer rate (4.1%) | 4.1% |
| 2. Taxable wage | MIN($60,000, $17,600) | $17,600 |
| 3. Tax per employee | $17,600 × 4.1% | $721.60 |
| 4. Total tax | $721.60 × 15 employees | $10,824.00 |
Understanding this cumulative cap helps with accurate quarterly filing. You don't pay SUTA tax on wages beyond the cap, so track each employee's year-to-date earnings carefully.
New York SUTA rates vary significantly based on your employer status and experience rating. The 2026 rates range from 1.7% to 9.5% for experienced employers, with new employers paying a fixed 4.1% rate.
| Employer Type | 2026 Rate | Includes RSF? | Who Qualifies |
|---|---|---|---|
| New Employer | 4.1% | Yes | First 3 years of operation |
| Experienced — Low Rate | 1.7% | Yes | Excellent experience rating (few claims) |
| Experienced — Medium Rate | 4.1% | Yes | Average experience rating |
| Experienced — High Rate | 7.0% | Yes | Above-average claim history |
| Experienced — Maximum Rate | 9.5% | Yes | Poor experience rating (many claims) |
Your NY SUTA rate is determined by your experience rating — a measure of your company's unemployment claim history compared to other employers in your industry.
The New York Department of Labor recalculates SUTA rates annually. Changes are driven by:
Your specific rate may change each year based on these factors and your company's individual claims history. Always verify your current rate on your annual rate notice from the NY DOL or in your NYS-45 filing.
The Re-employment Service Fund (RSF) is a 0.075% assessment that funds re-employment services in New York. It's separate from the regular SUTA contribution but collected alongside it and already reflected in your total assigned rate — you don't need to calculate it separately. On your quarterly NYS-45 return, the RSF is reported as its own line item (line 5) on the payroll subject to contribution, but it is not an additional cost beyond your assigned rate — it is already included in the total.
Understanding the trajectory of New York's SUTA wage base helps with budget planning and forecasting. The wage base has increased steadily over the past decade, with the 2026 figure representing the largest single-year jump on record.
| Year | Wage Base | Year-over-Year Change | Notable Events |
|---|---|---|---|
| 2026 | $17,600 | +37.5% | New 18%-of-average-wage indexing formula begins; federal UI loan repaid |
| 2025 | $12,800 | +2.4% | Standard annual adjustment |
| 2024 | $12,500 | +1.6% | Standard annual adjustment |
| 2023 | $12,300 | +2.5% | Standard annual adjustment |
| 2022 | $12,000 | +1.7% | Standard annual adjustment |
| 2021 | $11,800 | +1.7% | Standard annual adjustment |
| 2020 | $11,600 | +1.8% | Standard annual adjustment |
| 2019 | $11,400 | +2.7% | Standard annual adjustment |
| 2018 | $11,100 | +1.8% | Standard annual adjustment |
| 2017 | $10,900 | +1.9% | Standard annual adjustment |
| 2016 | $10,700 | +1.9% | Standard annual adjustment |
| 2015 | $10,500 | +1.9% | Standard annual adjustment |
| 2014 | $10,300 | +21.2% | Scheduled statutory increase |
| 2013 | $8,500 | — | Base year |
New York's wage base indexing formula took effect with the 2026 wage base. Each January 1, the wage base recalculates automatically to 18% of the New York State average annual wage, rounded up to the nearest $100, using the four most recent quarters of published quarterly census of employment and wages data. The wage base can never be reduced from the prior year's level.
This means employers can expect the wage base to rise each year in line with state wage growth, providing more predictability for long-term budgeting than the prior periodic-legislation model. Using the official formula, a 3–4% rise in the state average annual wage would put the 2027 wage base in the range of roughly $18,200–$18,400. This is an estimate — the NY DOL confirms the exact figure in late 2026 on the NYS-45 wage base page.
New York uses an experience rating system to calculate each employer's SUTA contribution rate. Your rate reflects your company's unemployment claim history compared to other employers.
Experience rating is a system where employers with fewer unemployment claims pay lower rates, while employers with more claims pay higher rates. The goal is to create accountability — employers who lay off more workers shoulder more of the cost of unemployment benefits.
Each unemployment claim filed by a former employee increases your experience rating. The calculation considers:
Your current NY SUTA rate appears on:
If you don't know your rate, check your latest NYS-45 filing or log in to the NY DOL website. Using the wrong rate in your calculations can lead to underpayment or overpayment.
| Employer Status | 2026 Rate | How It's Determined |
|---|---|---|
| New Employer | 4.1% | Fixed rate for first 3 years |
| Experienced — Minimum | 1.7% | Excellent experience rating |
| Experienced — Average | ~4.0% - 5.0% | Typical experience rating |
| Experienced — Maximum | 9.5% | Poor experience rating |
Improving your experience rating by reducing turnover and contesting invalid claims can significantly lower your SUTA rate over time.
New York employers have several legitimate strategies to lower their SUTA rate over time. Reducing your rate can save thousands in taxes each year.
Your experience rating is the single most important factor in determining your SUTA rate. Improving it takes time but yields significant savings.
New York allows employers to make voluntary contributions to the unemployment insurance trust fund. These payments can reduce your future rate by replenishing your account balance.
Poor record-keeping can lead to incorrect claim charges and higher rates. Ensure you:
Make sure your business is properly classified. Some employers qualify for reduced rates or special classifications that can lower their tax burden. New York City–based owners of unincorporated businesses should also check the NYC unincorporated business tax credit calculator to see whether they qualify for that credit.
Here's how rate reduction can impact your bottom line for a company with 20 employees earning $50,000 each:
| Rate Scenario | Rate | Tax Per Employee | Total Tax (20 Employees) | Annual Savings |
|---|---|---|---|---|
| High Rate | 9.5% | $1,672.00 | $33,440.00 | — |
| Average Rate | 4.1% | $721.60 | $14,432.00 | $19,008 saved |
| Low Rate | 1.7% | $299.20 | $5,984.00 | $27,456 saved |
Moving from a 9.5% rate to a 1.7% rate saves over $27,000 annually for this company. The effort to reduce turnover and contest invalid claims pays significant dividends.
Employers in New York pay both state SUTA taxes and federal FUTA taxes. Understanding how these two taxes interact is essential for accurate payroll tax compliance.
The Federal Unemployment Tax Act (FUTA) imposes a federal payroll tax on employers. The standard FUTA rate is 6.0% on the first $7,000 of each employee's wages. Unlike SUTA, FUTA applies to all employers regardless of their experience rating.
Employers who pay state unemployment taxes on time receive a credit against their FUTA liability. This credit can be as high as 5.4%, reducing the effective FUTA rate to just 0.6%.
| Feature | NY SUTA | FUTA |
|---|---|---|
| Wage Base | $17,600 (2026) | $7,000 |
| Rate | 1.7% - 9.5% (varies by experience) | 6.0% (standard, with credit) |
| Effective Rate (with credit) | Varies | 0.6% |
| Who Pays | Employers only | Employers only |
| Filing Frequency | Quarterly (NYS-45) | Annual (IRS Form 940) |
| Funds | State unemployment benefits | Federal unemployment programs |
New York is not currently subject to a FUTA credit reduction. The state repaid its outstanding federal Title XII unemployment loan in full before the November 10, 2025 deadline, avoiding the credit reduction that would otherwise have applied for a fifth consecutive year of an outstanding balance. As a result, New York employers who pay their SUTA taxes on time and in full receive the standard 5.4% federal credit, for an effective FUTA rate of 0.6% in 2026.
To maximize your FUTA credit, ensure:
For most New York employers, SUTA is the larger tax due to the higher wage base. FUTA is a smaller but still important compliance requirement. Together, they form the complete unemployment tax picture for your business.
Staying compliant with New York SUTA requirements is essential to avoid penalties, interest, and FUTA credit loss. Use this checklist to ensure you're meeting all obligations.
Check your annual rate notice from the NY DOL or your NYS-45 filing. Use the correct rate for each quarter.
Use $17,600 for 2026 — not the inaccurate $13,000 figure seen on some third-party sites. Stop taxing each employee once their year-to-date wages reach the cap.
File your Combined Withholding, Wage Reporting, and Unemployment Insurance Return (NYS-45) each quarter. Deadlines are April 30, July 31, October 31, and January 31.
Late payments incur penalties and interest. More importantly, late SUTA payments can reduce your FUTA credit — costing you more in federal taxes.
Keep detailed payroll records for at least 4 years. This includes employee wages, SUTA contributions, and claim documentation.
When the NY DOL notifies you of a claim, respond within the required timeframe. Contest invalid claims to protect your experience rating.
Check your rate notice each fall. Verify the rate is correct and appeal if you believe there's an error.
New York does not currently have a FUTA credit reduction — its federal UI loan was repaid before the November 2025 deadline. Confirm your state's status each year via the IRS Form 940 Schedule A instructions, since credit reduction status can change if a state carries a new loan balance.
If your rate is high, evaluate whether making a voluntary contribution could lower your future rates.
NY SUTA wage bases and rates change annually. Subscribe to NY DOL updates and monitor the January 2027 recalculation under the new 18%-of-average-wage indexing formula.
If you're unsure about any compliance requirement, consult a payroll professional or tax advisor. The cost of professional advice is minimal compared to the cost of penalties and increased rates.
If you've searched for the 2026 NY SUTA wage base, you've probably noticed a frustrating problem: different websites give different numbers. Some say $13,000. Others say $17,600. Only one of these numbers is confirmed by the New York State Department of Labor.
Not the Official 2026 Figure
The Official 2026 NY DOL Wage Base
New York's wage base jumped unusually sharply for 2026 — from $12,800 to $17,600 — as part of a legislative overhaul that paid off the state's federal UI loan and switched the wage base onto a new statutory indexing formula (18% of the state average annual wage). During that transition, some third-party payroll and HR sites published a lower $13,000 figure that does not match any official NY DOL source.
As the comparison in the section above shows, using $13,000 instead of $17,600 understates your tax liability by roughly $1,886 for every 10 employees at the 4.1% new employer rate. That underpayment can grow into penalties, interest, and lost FUTA credit — so use the official $17,600 base for every 2026 NY SUTA calculation.
Our Commitment: This page uses only the officially published 2026 NY DOL figure ($17,600) and explains why some other sites show an inaccurate $13,000. We verified this directly against the NY DOL's NYS-45 wage base page and Unemployment Insurance Rate Information page before publishing.
The 2026 New York SUTA taxable wage base is $17,600. This is the only figure confirmed on the official NY DOL wage base page (NYS-45 quarterly reporting) and is the maximum amount of each employee's annual wages subject to New York State Unemployment Insurance tax for 2026.
The $17,600 figure is the official 2026 NY DOL taxable wage base, confirmed on the state's NYS-45 wage base page. The $13,000 figure appears on some third-party payroll sites but does not appear on any official NY DOL page for 2026 — it appears to be an outdated or miscalculated figure from an aggregator source. Always use $17,600 for your 2026 NY SUTA calculations.
Use this formula: MIN(employee annual wages, $17,600) × your SUTA rate = tax per employee. If an employee earns less than $17,600, tax all wages. If they earn more, tax only the first $17,600. Then multiply by the number of employees for total liability.
New employers in New York pay a fixed 4.1% rate for their first 3 years of operation. This rate already includes the 0.075% Re-employment Service Fund assessment. After 3 years, your rate is determined by your experience rating.
The RSF is a 0.075% assessment that funds re-employment services in New York. It's collected alongside the regular SUTA contribution and is already included in your total rate. For most employers, you don't need to calculate it separately — it's already part of your assigned rate.
NY SUTA uses a $17,600 wage base with rates from 1.7% to 9.5%. FUTA uses a $7,000 wage base with a standard 6.0% rate (effective 0.6% after the standard credit). New York is not currently subject to a FUTA credit reduction — the state repaid its federal UI loan in full before the November 10, 2025 deadline.
Yes. Strategies include: improving your experience rating (reducing claims), making voluntary contributions to the trust fund, contesting invalid claims, and maintaining accurate records. Reducing your rate from 9.5% to 1.7% can save over $27,000 annually for a company with 20 employees.
Beginning in 2026, the wage base permanently adjusts each January 1 to 18% of the New York State average annual wage, rounded up to the nearest $100. The 2026 figure of $17,600 is the first result of this new formula; the next recalculation occurs January 1, 2027.
Late or missed payments result in penalties and interest and can raise your future experience-rated SUTA rate. Late payments can also reduce or eliminate your FUTA credit, increasing your federal tax liability. Repeated non-compliance can lead to liens, legal action, and business license suspension.
Most employees are covered, with a few exceptions: independent contractors (properly classified), certain agricultural workers, domestic employees earning below the threshold, and some government employees. Most W-2 employees are subject to NY SUTA tax.
Each unemployment claim filed by a former employee increases your experience rating. Your rate is based on your benefit ratio (claims divided by taxable wages) compared to industry averages. More claims = higher rate. A single claim can affect your rate for up to 3 years.
Historically, the wage base changed through periodic legislation. Beginning in 2026, it adjusts automatically each January 1 to 18% of the New York State average annual wage. The $17,600 figure for 2026 is the first result of this new indexing formula.
Your rate appears on your annual rate notice from the NY DOL, your NYS-45 quarterly return, and in the NY DOL employer portal. New employers pay 4.1%. Experienced employers should check their latest rate notice for their specific rate.
SUTA dumping is the practice of restructuring your business to avoid higher unemployment tax rates. It's illegal and carries significant penalties, including back taxes, interest, and fines. Only legitimate strategies like improving your experience rating and making voluntary contributions are legal ways to reduce your rate.
The information and calculator provided on this page are for educational and informational purposes only. While we make every effort to ensure accuracy, SUTA rates, wage bases, and tax laws are subject to change. This calculator provides estimates only and should not be used as the sole basis for tax filing or compliance decisions.
For official calculations and filings, always refer to the New York State Department of Labor and your specific rate notice. Consult a qualified tax professional or payroll specialist for advice specific to your business situation.
AKCalc does not provide legal, tax, or financial advice. All content is provided "as is" without warranties of any kind.
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