San Jose, California
San Jose employer costs: minimum wage, taxes and paid leave
San Jose sets its own minimum wage, above California’s. The minimum wage is $19 an hour from Jan 1, 2027. A $50,000 employee costs a new employer about $62,794 a year here in 2026.
Calculate the cost of an employee in San Jose
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.
San Jose employer rules on top of California's
What San Jose adds, then the federal and California lines every employer here pays. The full California breakdown is on the state page.
- San Jose minimum wage
$18.45 in 2026, $19 in 2027
$18.45 an hour; $19 from Jan 1, 2027.
per City of San José, Office of Equality Assurance, as of Jan 1, 2027
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
2.1% of $7,000
6% of the first $7,000, less the 5.4% credit for paying state unemployment tax, plus California's potential 2026 credit reduction of 1.5%: $147 per employee. The final reduction is set on November 10, 2026.
per Internal Revenue Service, as of Jan 1, 2026; per U.S. Department of Labor, Employment and Training Administration, as of Nov 10, 2026
- California unemployment insurance (SUTA)
3.4% of $7,000
New employers pay 3.4% on the first $7,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per California Employment Development Department, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in San Jose
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (with credit reduction)2.1% of $7,000 | $147 |
| State unemployment insurance (new employer)3.4% of $7,000 | $238 |
| Employment Training Tax0.1% of $7,000 | $7 |
| Workers' compensation (state index rate)$1.86 per $100 of payroll | $930 |
| Health insurance (single coverage, state average)average employer contribution | $7,647 |
| Total cost a year | $62,794 |
25.6% on top of pay · $30.78 per hour worked
Hourly employee at $19 an hour
$19 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $38,760 |
|---|---|
| Paid sick leave required by law40 hours | $760 |
| Social Security (employer share)6.2% of $39,520 | $2,450 |
| Medicare (employer share)1.45% of $39,520 | $573 |
| FUTA (with credit reduction)2.1% of $7,000 | $147 |
| State unemployment insurance (new employer)3.4% of $7,000 | $238 |
| Employment Training Tax0.1% of $7,000 | $7 |
| Workers' compensation (state index rate)$1.86 per $100 of payroll | $735 |
| Health insurance (single coverage, state average)average employer contribution | $7,647 |
| Total cost a year | $51,317 |
29.9% on top of pay · $25.16 per hour worked
What changes in 2027
- San Jose's minimum wage becomes $19 an hour on Jan 1, 2027. per City of San José, Office of Equality Assurance, as of Jan 1, 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- California's minimum wage becomes $17.40 an hour on January 1, 2027. per California Department of Industrial Relations, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
What is the San Jose minimum wage in 2027?
$19 an hour from Jan 1, 2027, up from $18.45: $39,520 for a full-time year in San Jose.
What is the minimum wage in San Jose in 2026?
$18.45 an hour in San Jose, or $1.55 above California's $16.90.
How much does an employee cost in San Jose?
$62,794 a year for a $50,000 employee in San Jose (new employer, 10 staff), 25.6% above pay.
What payroll taxes do employers pay in San Jose?
Only federal and California payroll taxes: $4,217 a year on a $50,000 San Jose salary.
Is paid sick leave required in San Jose?
Yes, under California's rule: 40 paid hours a year for a full-time San Jose employee at 100 staff.
What does a minimum-wage employee cost in San Jose?
$50,065 a year at $18.45 an hour full time in San Jose: $24.54 per hour worked.
More employer cost pages
California
Other cities with their own rules
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.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.