February 2025 Update

2025 Tax Rates – Below is a list of the major states that recently issued their 2025 Tax Rates, bringing the total number to 47 states.

Massachusetts – Issued 2025 Tax Rate Notices on January 21. Due to changes in various calculations with the 2025 Tax Rates, the Minimum tax rate has increased to 1.096% (1.079% in 2024) and the Maximum Rate increased to 15.906% (15.655% in 2024).

Maryland – The 2025 Tax Rate is available online; however, the state has yet to officially issue the tax rate notices.  The agency is unsure if the official tax rate will be changed from the rate currently shown.

New York – Began issuing their 2025 Tax Rate Notices in “batches” on February 10, with the last rates being issued the week of March 15. The rate schedule is the same as 2024, with a Minimum rate of 2.10% and a Maximum rate of 9.90%.

Texas – Issued 2025 Tax Rate Notices on January 10.  Rate schedule stays the same as 2024 with a Minimum rate of 0.25% and a Maximum rate of 6.25%.

2025 Taxable Wage Base Update

49 states have confirmed the 2025 Taxable Wage Base for employers.

FUTA UPDATE – 2024

California and New York currently have outstanding FUTA Title XII Loans for 2024 and have failed to pay back the loans by November of 2024. Employers will have to pay an additional 0.90% on employees reported in these states retroactively to January 1, 2024.

1.    Employers have until January 31, 2025 to pay the additional 0.90% on employees in these two states. 

2.    The Additional 0.90% results in an estimated increase of $63 per employee for 2024 (0.90% * $7,000 FUTA Wage Base).

Total FUTA Rate will be 1.50% in these states for 2024. Virgin Islands is 4.80%