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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 |
