2026 Rate Guide

Workers Comp Insurance Cost by State

Compare workers compensation insurance rates across the top 20 states. Understand what affects your premium and how to save.

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Average Workers Comp Rates by State (per $100 of Payroll)

State	Avg. Rate / $100	Required?	Cost Level
California (CA)	$1.34	Yes	High
New York (NY)	$1.21	Yes	High
Illinois (IL)	$0.98	Yes	Medium
Florida (FL)	$0.89	Yes	Medium
Pennsylvania (PA)	$0.94	Yes	Medium
Texas (TX)	$0.82	No*	Low-Med
Ohio (OH)	$0.74	Yes	Low
Georgia (GA)	$0.78	Yes	Low
North Carolina (NC)	$0.76	Yes	Low
Michigan (MI)	$0.86	Yes	Medium
New Jersey (NJ)	$1.08	Yes	High
Virginia (VA)	$0.68	Yes	Low
Washington (WA)	$1.14	Yes	High
Massachusetts (MA)	$1.02	Yes	Medium
Arizona (AZ)	$0.72	Yes	Low
Colorado (CO)	$0.78	Yes	Low
Tennessee (TN)	$0.72	Yes	Low
Maryland (MD)	$0.88	Yes	Medium
Minnesota (MN)	$0.92	Yes	Medium
Indiana (IN)	$0.70	Yes	Low

* Texas does not require workers comp for most private employers. Rates shown are averages and may vary by industry, claims history, and payroll size.

What Affects Workers Comp Costs?

Industry & Class Code

Your NCCI class code is the #1 cost factor. Construction and manufacturing pay 3-5x more than office-based businesses.

State Regulations

Each state sets its own rate structures, benefit levels, and medical fee schedules, causing significant cost variation.

Total Payroll

Premiums are calculated as a rate per $100 of payroll. Higher payroll = higher premium, but the rate stays the same.

Claims History (Experience Mod)

Your Experience Modification Rate (EMR) adjusts your premium up or down based on past claims. An EMR of 1.0 is average.

Number of Employees

More employees means more payroll exposure. Some carriers offer volume discounts for larger businesses.

Safety Programs

Documented safety programs, drug-free workplace policies, and return-to-work programs can earn premium discounts of 5-15%.

Workers Comp Cost FAQ

How much does workers comp insurance cost per employee?

Workers comp costs vary widely by state and industry. The national average is approximately $0.85-$1.05 per $100 of payroll. For an employee earning $50,000/year, this translates to roughly $425-$525/year. High-risk industries like construction pay significantly more, while office-based businesses pay less.

Which states have the most expensive workers comp?

California, New York, New Jersey, and Washington consistently have the highest workers comp rates. California averages $1.34 per $100 of payroll, while New York averages $1.21. These states have higher rates due to broader coverage requirements, higher medical costs, and more generous benefit structures.

Which states have the cheapest workers comp?

Virginia, Indiana, Arizona, Tennessee, and Ohio have some of the lowest workers comp rates in the country, averaging $0.68-$0.74 per $100 of payroll. Texas is unique in that workers comp is not required for most private employers.

How can I lower my workers comp costs?

You can reduce workers comp costs by implementing safety programs, maintaining a clean claims history, classifying employees correctly, shopping multiple carriers, and working with a broker like Insura who can compare rates across carriers to find the best price for your industry and state.

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