Workers Comp Rate Lookup by State

Find workers' compensation insurance rates for your state and city. Enter your annual payroll to estimate your workers' comp cost, compare rates across states, and understand your state's coverage requirements. The national average is $1.19 per $100 of payroll.

Workers Comp Cost Calculator

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Workers Comp Rates by State - All 50 States + DC

Workers' compensation rates vary significantly across the United States, from as low as $0.68 per $100 of payroll in Virginia to over $2.15 in Alaska. The national average is approximately $1.19 per $100. Rates depend on industry classification, claims history, and state regulations. 4 states (Ohio, North Dakota, Washington, and Wyoming) require employers to purchase coverage through a state fund. Click any state tile for detailed city-level data and requirements.

AK $2.15 Alaska HI $1.85 Hawaii CT $1.60 Connecticut PA $1.55 Pennsylvania CA $1.45 California RI $1.42 Rhode Island FL $1.40 Florida WA $1.40 Washington State Fund NJ $1.38 New Jersey DC $1.35 District of Columbia LA $1.35 Louisiana VT $1.32 Vermont DE $1.30 Delaware IL $1.30 Illinois WV $1.28 West Virginia NY $1.25 New York MA $1.22 Massachusetts SC $1.20 South Carolina WY $1.20 Wyoming State Fund ME $1.18 Maine MT $1.18 Montana OK $1.18 Oklahoma AL $1.15 Alabama MN $1.15 Minnesota NH $1.15 New Hampshire WI $1.15 Wisconsin MI $1.12 Michigan OR $1.12 Oregon GA $1.10 Georgia MD $1.10 Maryland MS $1.10 Mississippi MO $1.10 Missouri OH $1.10 Ohio State Fund KS $1.08 Kansas NE $1.08 Nebraska AZ $1.05 Arizona IA $1.05 Iowa ND $1.05 North Dakota State Fund NV $1.02 Nevada NM $1.00 New Mexico NC $1.00 North Carolina KY $0.98 Kentucky TN $0.98 Tennessee ID $0.95 Idaho SD $0.95 South Dakota CO $0.92 Colorado TX $0.90 Texas UT $0.85 Utah IN $0.80 Indiana AR $0.75 Arkansas VA $0.68 Virginia

Most Expensive States for Workers Comp

These states have the highest average workers' compensation rates. High rates are often driven by hazardous industries, generous benefit structures, or litigious claims environments.

# State Rate/$100 Type Est. Cost on $250K Payroll
1 Alaska $2.15 Competitive $5,375
2 Hawaii $1.85 Competitive $4,625
3 Connecticut $1.60 Competitive $4,000
4 Pennsylvania $1.55 Competitive $3,875
5 California $1.45 Competitive $3,625
6 Rhode Island $1.42 Competitive $3,550
7 Florida $1.40 Competitive $3,500
8 Washington $1.40 Monopolistic $3,500
9 New Jersey $1.38 Competitive $3,450
10 District of Columbia $1.35 Competitive $3,375

Cheapest States for Workers Comp

These states offer the lowest average workers' compensation rates, making them more affordable for employers. Lower rates often reflect strong safety programs and favorable claims environments.

# State Rate/$100 Type Est. Cost on $250K Payroll
1 Virginia $0.68 Competitive $1,700
2 Arkansas $0.75 Competitive $1,875
3 Indiana $0.80 Competitive $2,000
4 Utah $0.85 Competitive $2,125
5 Texas $0.90 Competitive $2,250
6 Colorado $0.92 Competitive $2,300
7 Idaho $0.95 Competitive $2,375
8 South Dakota $0.95 Competitive $2,375
9 Kentucky $0.98 Competitive $2,450
10 Tennessee $0.98 Competitive $2,450

Understanding Workers Compensation Insurance

Workers' compensation insurance is a state-mandated program that provides benefits to employees who are injured or become ill on the job. Nearly every state requires most employers to carry workers' comp coverage, with Texas being the only state where it is fully optional for private employers. The insurance covers medical expenses, lost wages, rehabilitation costs, and death benefits. In exchange, employees generally give up their right to sue their employer for workplace injuries (the "exclusive remedy" doctrine).

How Workers Comp Rates Are Calculated

Workers' compensation rates are expressed as a cost per $100 of payroll. The rate varies based on several factors: the state where you operate, the industry classification code (class code) of your workers, your company's claims history (experience modification rate or "e-mod"), and the size of your payroll. High-risk industries like construction, logging, and roofing have much higher rates than office-based businesses. The rates shown on this site are statewide averages across all industries.

Monopolistic vs. Competitive State Funds

Four states — Ohio, North Dakota, Washington, and Wyoming — are "monopolistic" states, meaning employers must purchase workers' compensation through the state-run fund. Private insurers cannot sell workers' comp policies in these states. All other states use a "competitive" market where employers can purchase coverage from private insurance companies, and many also offer a state fund as an option of last resort. Some states like California have a state fund (State Compensation Insurance Fund) that competes alongside private insurers.

What Happens If You Don't Carry Workers Comp

Penalties for not carrying required workers' compensation insurance are severe in most states. They can include criminal charges (misdemeanor or felony), daily fines ranging from $100 to $10,000 or more, stop-work orders that shut down your business, and personal liability for any workplace injuries. In New York, knowing failure to carry workers' comp is a felony with fines up to $50,000. Texas is unique in that penalties for not carrying coverage are limited to losing common-law defenses in injury lawsuits, since coverage is optional.

Frequently Asked Questions

How much does workers compensation insurance cost?

Workers' compensation costs are based on your payroll and expressed as a rate per $100 of payroll. The national average is approximately $1.19 per $100, meaning an employer with $250,000 in annual payroll would pay roughly $2,975 per year. However, actual costs vary widely by state (from $0.68 in Virginia to $2.15 in Alaska), industry (office workers pay far less than roofers), and your claims history. Use our calculator above to get an estimate for your state.

Is workers comp required in every state?

Workers' compensation is required in 49 states and DC, but the specific requirements vary. Texas is the only state where workers' comp is fully optional for private employers. Most states require coverage once you have 1 employee, but some states set higher thresholds: Alabama and Mississippi require 5+, Florida requires 4+ (1 for construction), and several states require 3+. Even in states with higher thresholds, it is generally advisable to carry coverage to protect your business.

What is a monopolistic state for workers comp?

A monopolistic state requires employers to purchase workers' compensation insurance from the state-run fund rather than from private insurance companies. The four monopolistic states are Ohio, North Dakota, Washington, and Wyoming. In these states, you cannot buy workers' comp from a private insurer. West Virginia was formerly monopolistic but transitioned to a competitive market in 2008.

What does workers compensation cover?

Workers' compensation covers medical expenses for work-related injuries and illnesses, a portion of lost wages during recovery (typically 60-70% of average weekly wage up to a state maximum), vocational rehabilitation if the worker cannot return to their previous job, and death benefits for dependents of workers killed on the job. It does not cover injuries caused by intoxication, self-inflicted injuries, or injuries sustained while committing a crime.

How can I lower my workers comp rates?

Several strategies can help reduce your workers' comp costs: implement a strong workplace safety program to reduce injuries, maintain a good claims history to lower your experience modification rate (e-mod), classify your employees correctly (misclassification can lead to overpayment), consider a pay-as-you-go plan to match premiums to actual payroll, shop multiple insurers for competitive quotes, and ask about available discounts such as drug-free workplace programs or safety certification credits.