Workers Comp Rates in North Carolina (NC)
The average workers' compensation rate in North Carolina is $1.00 per $100 of payroll , effective as of 2025-01-01. This is $0.19 (16.0%) below the national average of $1.19 per $100. North Carolina has a competitive insurance market where employers can purchase workers' comp from private insurers. North Carolina requires workers' compensation for employers with 3 or more employees. The state has a competitive market with rates below the national average.
Workers Comp Requirements in North Carolina
Workers Comp Rates by City in North Carolina
The table below shows average workers' compensation rates for 5 cities in North Carolina, sorted by rate from highest to lowest. Rates range from $0.95/$100 in Raleigh to $1.02/$100 in Charlotte. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Charlotte | $1.02 | $2,550 | +$0.02 | -$0.17 | Largest city |
| Winston-Salem | $1.02 | $2,550 | +$0.02 | -$0.17 | -- |
| Greensboro | $1.00 | $2,500 | Same | -$0.19 | -- |
| Durham | $0.98 | $2,450 | -$0.02 | -$0.21 | Research Triangle |
| Raleigh | $0.95 | $2,375 | -$0.05 | -$0.24 | State capital |
How North Carolina Compares to Other States
Below is a comparison of North Carolina with five states that have similar workers' compensation rates. This comparison helps illustrate where North Carolina stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| North Carolina (NC) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| New Mexico (NM) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| Nevada (NV) | $1.02 | Competitive | 1+ | 5 days | $2,550 |
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
| Arizona (AZ) | $1.05 | Competitive | 1+ | 7 days | $2,625 |
Workers Comp Cost Examples for North Carolina
The following table shows estimated annual workers' compensation costs for various payroll sizes in North Carolina using the state average rate of $1.00 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $500 | $42 |
| $100,000 | $1,000 | $83 |
| $250,000 | $2,500 | $208 |
| $500,000 | $5,000 | $417 |
| $1,000,000 | $10,000 | $833 |
| $2,500,000 | $25,000 | $2,083 |
Frequently Asked Questions About Workers Comp in North Carolina
How much does workers comp cost in North Carolina?
The average workers' compensation rate in North Carolina is $1.00 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,500 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in North Carolina?
Yes. North Carolina requires workers' compensation for employers with 3 or more employees. The following are exempt: Agricultural workers (fewer than 10), domestic workers, railroad employees, federal employees. Penalties for noncompliance include: Class H felony for willful failure, up to $1 per employee per day fine.
Where can I buy workers comp in North Carolina?
North Carolina has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in North Carolina?
The waiting period in North Carolina is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in North Carolina is $1,150.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in North Carolina, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.