Free calculator · 50 states and DC
Employee cost calculator: the true cost of an employee in every state
Enter a salary or an hourly wage and a state. The calculator adds every cost an employer pays on top of pay — federal and state payroll taxes, state unemployment insurance, employer-paid leave programs, required paid sick leave, workers' comp and health insurance — and shows each line with the agency it comes from.
Calculate the cost of an employee
Example: South Dakota, the median state at $50,000. Choose your state.
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
The cost of an employee in every state
Employer cost on top of pay for one full-time employee in 2026, highest first. Select a state for its full breakdown and sources.
| Rank | State | On top of a $50,000 salary | Total cost | On top of $18 an hour | Total cost |
|---|---|---|---|---|---|
| 1 | New York | 28.5% | $64,247 | 34.8% | $50,478 |
| 2 | New Jersey | 27.9% | $63,945 | 33.3% | $49,910 |
| 3 | Hawaii | 27.5% | $63,755 | 32.5% | $49,616 |
| 4 | Alaska | 27.3% | $63,646 | 33.2% | $49,854 |
| 5 | Connecticut | 26.7% | $63,336 | 32.6% | $49,629 |
| 6 | Oregon | 26.5% | $63,238 | 31.7% | $49,304 |
| 7 | Massachusetts | 26.2% | $63,113 | 32.1% | $49,470 |
| 8 | Illinois | 25.6% | $62,802 | 31.2% | $49,113 |
| 9 | California | 25.6% | $62,794 | 31.0% | $49,040 |
| 10 | Maine | 25.5% | $62,754 | 31.0% | $49,061 |
| 11 | District of Columbia | 25.5% | $62,749 | 31.0% | $49,042 |
| 12 | Colorado | 25.5% | $62,743 | 31.0% | $49,035 |
| 13 | Vermont | 25.3% | $62,638 | 30.7% | $48,916 |
| 14 | Pennsylvania | 25.1% | $62,571 | 30.6% | $48,907 |
| 15 | Wisconsin | 25.0% | $62,509 | 30.4% | $48,810 |
| 16 | New Mexico | 24.8% | $62,420 | 30.3% | $48,767 |
| 17 | Montana | 24.8% | $62,416 | 29.9% | $48,628 |
| 18 | Wyoming | 24.8% | $62,410 | 30.1% | $48,712 |
| 19 | Washington | 24.7% | $62,373 | 29.7% | $48,557 |
| 20 | North Dakota | 24.6% | $62,322 | 29.9% | $48,647 |
| 21 | Rhode Island | 24.4% | $62,207 | 29.6% | $48,513 |
| 22 | Nevada | 24.3% | $62,173 | 29.2% | $48,376 |
| 23 | New Hampshire | 24.0% | $62,007 | 29.1% | $48,333 |
| 24 | Idaho | 24.0% | $62,001 | 28.8% | $48,216 |
| 25 | Delaware | 23.8% | $61,916 | 28.9% | $48,253 |
| 26 | South Dakota | 23.7% | $61,867 | 28.8% | $48,204 |
| 27 | Georgia | 23.6% | $61,822 | 28.6% | $48,164 |
| 28 | Nebraska | 23.4% | $61,725 | 28.4% | $48,063 |
| 29 | Minnesota | 23.4% | $61,689 | 28.0% | $47,918 |
| 30 | Florida | 23.1% | $61,562 | 28.0% | $47,916 |
| 31 | Kentucky | 23.1% | $61,560 | 28.1% | $47,944 |
| 32 | Utah | 23.1% | $61,539 | 27.7% | $47,813 |
| 33 | Tennessee | 23.0% | $61,478 | 27.8% | $47,857 |
| 34 | Oklahoma | 22.9% | $61,473 | 27.6% | $47,785 |
| 35 | Kansas | 22.9% | $61,459 | 27.7% | $47,824 |
| 36 | Texas | 22.8% | $61,405 | 27.6% | $47,786 |
| 37 | Virginia | 22.7% | $61,348 | 27.5% | $47,735 |
| 38 | North Carolina | 22.6% | $61,284 | 27.3% | $47,644 |
| 39 | Iowa | 22.5% | $61,271 | 27.1% | $47,598 |
| 40 | South Carolina | 22.5% | $61,260 | 27.2% | $47,610 |
| 41 | West Virginia | 22.5% | $61,260 | 27.3% | $47,671 |
| 42 | Ohio | 22.5% | $61,238 | 27.2% | $47,632 |
| 43 | Maryland | 22.5% | $61,228 | 27.1% | $47,595 |
| 44 | Louisiana | 22.4% | $61,189 | 26.8% | $47,491 |
| 45 | Missouri | 22.3% | $61,171 | 26.8% | $47,485 |
| 46 | Michigan | 21.6% | $60,820 | 26.0% | $47,186 |
| 47 | Alabama | 21.5% | $60,759 | 25.8% | $47,099 |
| 48 | Indiana | 21.4% | $60,678 | 25.7% | $47,067 |
| 49 | Mississippi | 20.7% | $60,373 | 24.8% | $46,734 |
| 50 | Arizona | 20.5% | $60,274 | 24.6% | $46,665 |
| 51 | Arkansas | 20.5% | $60,267 | 24.7% | $46,680 |
A new employer with 10 employees in a general industry, a $50,000 salary or $18 an hour for 40 hours a week, single health coverage at the state average and required paid sick leave. The $18 column is below the minimum wage in a few places and is shown for comparison.
How to read the result
The total is what one employee costs your business in a year at the inputs you enter: the pay itself plus every employer charge on it. Overhead is that extra cost as a share of pay, and the cost per hour worked divides the total by the hours the employee actually works, after paid sick leave and paid time off.
Three lines depend on your own business more than on the state, so the calculator lets you replace them: your state unemployment insurance rate (new employers get a fixed rate for their first two to three years; after that it follows your claims history), your workers' comp rate (set by your job classes and claims) and the health plan you offer.
What it does not include
Income tax withholding and the employee's own share of Social Security and Medicare are paid by the employee, not the employer, so they are not costs here. Retirement contributions, bonuses, equipment, recruiting, training and payroll software fees vary too much by employer to estimate from public data; add them yourself if you pay them.
Estimates for planning
These are estimates for planning, not tax or legal advice. Rates change every year and some depend on your business, so confirm your own rates with your state agencies, insurer or payroll provider before you budget.
Frequently asked questions
How much does an employee cost a company?
In our standard scenario — a $50,000 salary, a new employer with 10 employees, single health coverage — an employee costs between $60,267 (Arkansas) and $64,247 (New York) a year in 2026. In the median state, South Dakota, it is $61,867.
How much does an employee cost on top of salary?
Between 20.5% and 28.5% of pay across the 50 states and DC in that scenario, 23.7% in the median state. Health coverage is the largest part, then Social Security and Medicare at 7.65% of pay; unemployment insurance, workers' comp and state leave programs make the difference between states.
How much does a $20 an hour employee cost an employer?
About $52,729 a year for 40 hours a week in South Dakota, the median state: $41,600 of pay plus $11,129 of payroll taxes, workers' comp and single health coverage, or $25.35 per hour worked. Choose your state above for its own figure.
How do you calculate the cost of an employee?
Start with gross pay, then add the employer's 6.2% Social Security (on pay up to $184,500) and 1.45% Medicare, FUTA on the first $7,000, state unemployment insurance on the state's wage base, any employer-paid state leave premium, workers' comp per $100 of payroll and the employer's share of benefits. Divide by hours actually worked for the cost per hour.
Which state is the most expensive to hire an employee in?
New York (28.5% on top of a $50,000 salary), New Jersey (27.9% on top of a $50,000 salary), Hawaii (27.5% on top of a $50,000 salary) rank highest in 2026, driven by New York's health insurance (single coverage, state average) and social security (employer share).
Which state is the cheapest to hire an employee in?
Arkansas (20.5%), Arizona (20.5%), Mississippi (20.7%) have the lowest employer overhead on a $50,000 salary in 2026, with low unemployment insurance wage bases and below-median workers' comp index rates.
What payroll taxes does an employer pay?
Social Security at 6.2% of pay up to $184,500 ($192,300 in 2027), Medicare at 1.45% of all pay, FUTA at 0.6% of the first $7,000 after the state credit, and state unemployment insurance on a wage base from $7,000 to $78,200. Ten jurisdictions add employer-paid leave or disability premiums.
What is the SUTA rate for new employers?
It depends on the state: from 1% to 4.03% for most industries in 2026 where the state publishes one rate, applied to its wage base. Seven states give new employers their industry's average rate instead, never below the 1% federal floor. Each state page shows the rate and its source.
What changes for employers on January 1, 2027?
The Social Security wage base rises from $184,500 to $192,300, and 12 states have announced a higher minimum wage for 2027 so far. Most states publish next year's unemployment insurance rates in November and December; each state page lists what is already official.
Can I put this employee cost calculator on my website?
Yes. Use “Add this calculator to your site” on this page to copy a short embed code, preset to any state. It is free, loads no cookies or trackers, and shows one line crediting LeadChange Group.
Can I download the data behind the calculator?
Yes. Every rate is in the Hiring Cost Atlas dataset, free to reuse under the Creative Commons Attribution license, with the official source and the date each value was checked.
Cities with their own employer rules
Colorado
Illinois
Minnesota
New Jersey
New York
Oregon
Washington
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Hiring in several states?
A PEO registers you for payroll taxes and unemployment insurance in each state and runs benefits for the whole team. Compare PEOs we research with verified prices and features.