DECEMBER 2025 UPDATE

2026 Tax Rate Update – Below is a list of the major states that recently issued their 2026 Tax Rates, bringing the total number to 31 states.

Illinois – Issued 2026 Tax Rates on December 1. The minimum rate is 0.75% with a maximum rate of 7.05%, lower than 2025.

Indiana – Issued 2026 Tax Rates on December 8.  Rate schedule remains unchanged, with a minimum rate of 0.50% and a maximum rate of 7.40%. 

Minnesota – Issued 2026 Tax Rates on December 11.  The minimum rate is 0.556% with a maximum rate of 10.702%.  The state is including an “Additional Assessment” to the tax rate calculation, which is 14.00% of the UI Taxes due.  Should you have any questions on how to calculate the Additional Assessment, please feel free to contact your Tax Analyst

Ohio - Issued 2026 Tax Rates on November 7.  The minimum rate is 0.55% with a maximum rate of 10.25%, both slight increases from 2025.

Pennsylvania – Issued their 2026 Tax Rates on December 12, with a Mail Date of December 31.  Rate schedule remains unchanged, with a minimum rate of 1.419% and a maximum rate of 10.3734%. 

2026 Taxable Wage Base Update

45 states have confirmed the 2026 Taxable Wage Base for employers.

 Upcoming Deadlines:

Voluntary Contribution:

Ohio – December 31 / South Dakota – December 31

Joint Account:

Ohio – December 31 / South Carolina – December 31

FUTA UPDATE – 2025

California has failed to pay back the outstanding FUTA Title XII Loans for 2025 Employers will have to pay an additional 1.20% on employees reported in CA retroactively to January 1, 2025.

1.    Employers have until January 31, 2026 to pay the additional 1.20% on employees in CA.

2.    The Additional 1.20% results in an estimated increase of $84 per employee for 2025 (1.20% * $7,000 FUTA Wage Base).

Total FUTA Rate will be 1.80% in CA for 2025. Virgin Islands would be 5.10%