20 states ranked by unemployment insurance taxes in 2025

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The Tax Foundation recently ranked the states with the most and least competitive unemployment insurance taxes in 2025.

Delaware has the least expensive unemployment insurance taxes, having rate structures with lower minimum and maximum rates and a wage base approximately at the federal level. Delaware also has simpler experience formulas and charging methods, and has not complicated its systems with benefit add-ons and surtaxes. New Jersey has the most expensive unemployment insurance taxes.

Read more about the states with the most and least expensive unemployment insurance taxes in 2025 below. The Tax Foundation determines a score by examining each state’s rate structure and tax base, with 1 being the worst and 10 the best.

In 2020-2024, the rank of Washington, D.C., does not affect the rank of states featured.

Worst states for unemployment insurance taxes

2025 rank	State	2025 score	2024 rank	2023 rank	2022 rank	2021 rank	2020 rank
50	New Jersey	3.66	48	44	42	45	44
49	Hawaii	3.89	50	40	41	32	30
48	Rhode Island	3.91	45	46	47	48	47
47	Massachusetts	3.97	49	47	49	49	49
46	Nevada	4.00	47	48	48	47	48
45	Alaska	4.00	44	50	50	50	50
44	Washington	4.00	46	49	46	44	41
43	Illinois	4.20	43	42	39	43	42
42	Minnesota	4.31	42	45	45	42	43
41	Oregon	4.48	34	43	43	40	45

Best states for unemployment insurance taxes

2025 rank	State	2025 score	2024 rank	2023 rank	2022 rank	2021 rank	2020 rank
10	Florida	5.63	9	8	10	5	5
9	Louisiana	5.64	11	14	12	4	4
8	Vermont	5.66	7	15	6	13	13
7	North Carolina	5.69	8	9	7	9	9
6	Oklahoma	5.70	6	5	9	1	1
5	Missouri	5.81	4	3	2	7	10
4	Kansas	5.82	5	11	15	10	11
3	Nebraska	6.01	2	1	1	2	2
2	Arizona	6.04	3	2	3	3	3
1	Delaware	6.12	1	4	11	11	7