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District of Columbia Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against DC Department of Employment Services's own pages and the other official sources below

District of Columbia employers pay state unemployment tax (SUTA) on the first $9,000 of each employee's wages in 2026, and new employers pay 2.9% — at most $261.00 per employee for the year. DC Universal Paid Leave tax can add to the employer's cost in 2026, depending on headcount (details below). Every District of Columbia employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).

SUTA wage base
$9,000
per employee, 2026
New-employer rate
2.9%
2026
New-employer max
$261.00
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in District of Columbia?

Enter your headcount and average pay to see the employer's share of District of Columbia and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.

District of Columbia employer payroll tax estimator · 2026

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2.9% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
District of Columbia unemployment (SUTA)
2.9% × first $9,000 per employee
$1,305
Federal unemployment (FUTA)
0.6% × first $7,000 after the full state credit
$210
Social Security (employer half)
6.2% × first $184,500
$15,500
Medicare (employer half)
1.45% of all wages
$3,625
DC Universal Paid Leave tax
0.75% employer share — Employer-only 0.75% of wages
$1,875
Total employer taxes$22,515
Per employee$4,503

Assumes every employee earns the average and works in District of Columbia all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.

District of Columbia unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$9,000 per employee (37th highest of 51)
New-employer rate
2.9%
How the new-employer rate works
2.7% new-employer rate plus the 0.2% Administrative Assessment, both on the first $9,000.
Most a new employer pays per employee
$261.00 (2.9% × $9,000)
Experience-rated range (2026, as published)
1.9% to 7.4%. Tax Table VI; the 0.2% Administrative Assessment is added.
2025 average employer rate
2.28% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
DC Department of Employment Services

Same $9,000 wage base as Michigan, Missouri, Nebraska, Ohio and Texas. Register with DC Department of Employment Services when you first pay wages in District of Columbia; you get an account number for quarterly wage reports and tax payments.

Paid leave, disability and other District of Columbia payroll programs

  • DC Universal Paid Leave taxEmployer-only 0.75% of wagesEmployer-paid tax of 0.75% of wages for every 2026 quarter; it cannot be withheld from employees.

Federal payroll taxes every District of Columbia employer pays

  • Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
  • Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
  • FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for District of Columbia unemployment tax paid on time = 0.6%, or $42 per employee.
  • Federal income tax withholding from each paycheck based on the employee's Form W-4.

Next for District of Columbia employers: District of Columbia paycheck calculator (employee withholding) · District of Columbia new hire reporting · District of Columbia payday & final paycheck rules · District of Columbia workers' comp · full payroll cost calculator

District of Columbia payroll tax FAQ

What is the District of Columbia SUTA rate for new employers in 2026?

2.9%. 2.7% new-employer rate plus the 0.2% Administrative Assessment, both on the first $9,000.

What is the District of Columbia SUTA wage base for 2026?

$9,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying District of Columbia unemployment tax on them for the rest of the year. That is the 37th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in District of Columbia?

No. In District of Columbia unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.

What other payroll taxes do District of Columbia employers pay?

Besides unemployment tax: DC Universal Paid Leave tax: Employer-paid tax of 0.75% of wages for every 2026 quarter; it cannot be withheld from employees.

How much FUTA do District of Columbia employers pay?

0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying District of Columbia unemployment tax on time. District of Columbia is not a credit-reduction state for 2026.

How does my District of Columbia SUTA rate change after the first years?

New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, DC Department of Employment Services assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 1.9% to 7.4% (Tax Table VI; the 0.2% Administrative Assessment is added). Use the rate on your annual rate notice. The 2025 average employer rate in District of Columbia was 2.28% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

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General information, not tax advice. Rates change every year; confirm yours on the notice from DC Department of Employment Services before filing.