Understanding workers’ compensation rates by state is essential for budgeting, as premiums vary significantly across the U.S. based on state regulations, industry risks, and local medical costs.
In 2026, the national average rate for workers’ compensation is approximately $1.10 to $1.30 per $100 of payroll, though actual costs can range from as little as $0.50 to over $2.50.
2026 Average Workers’ Comp Rates by State
The following table highlights the estimated base rates per $100 of payroll for diverse states, illustrating the broad range of costs across the country.
| State | Estimated 2026 Rate (per $100 payroll) | 2026 National Rank (1st = Lowest) |
| North Dakota | $0.50 | 1st |
| Arkansas | $0.53 | 2nd |
| Utah | $0.63 | 4th |
| Texas | $0.78 | 11th |
| Florida | $1.00 | 21st |
| Georgia | $1.09 | 25th |
| Illinois | $1.34 | 37th |
| Washington | $1.35 | 39th |
| California | $1.86 | 47th |
| New York | $1.98 | 48th |
| New Jersey | $2.16 | 49th |
| Hawaii | $2.52 | 50th |
Key Factors Influencing State Rates
While the state you operate in sets the baseline, your actual cost is determined by more specific variables:
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Industry Class Codes: High-risk industries like construction or roofing pay significantly higher rates (often $10+ per $100) compared to clerical or professional services ($0.12–$0.25).
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Experience Modification Factor (MOD): This is your business’s specific safety score. In 2026, a “clean” safety record can lower your premium by 20% or more compared to the state average.
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State-Specific Benefits: States like Hawaii and New Jersey have higher rates partly due to generous benefit mandates and higher local medical costs for injured workers.
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State Funds vs. Private Markets: In “monopolistic” states like Washington or North Dakota, you must buy from a state fund, which can sometimes lead to more stable but less competitive pricing than private markets.
2026 Benefit Adjustments
As of January 1, 2026, many states have increased their maximum weekly compensation rates to keep up with the State Average Weekly Wage (SAWW):
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California: The maximum Temporary Total Disability (TTD) rate increased to $1,764.11 per week.
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Oklahoma: The maximum weekly benefit rate rose to $1,128.66.
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South Carolina: The maximum weekly rate for 2026 is now $1,189.94.