New York Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against NY Department of Labor's own pages and the other official sources below
New York employers pay state unemployment tax (SUTA) on the first $17,600 of each employee's wages in 2026, and new employers pay 4.1% — at most $721.60 per employee for the year. Every New York employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in New York?
Enter your headcount and average pay to see the employer's share of New York and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
New York employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
New York unemployment (SUTA) 4.1% × first $17,600 per employee | $3,608 |
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 |
| Total employer taxes | $22,943 |
| Per employee | $4,589 |
Assumes every employee earns the average and works in New York all year. Local payroll taxes (below) depend on where the work is done and are not included. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
New York unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $17,600 per employee (20th highest of 51)
- New-employer rate
- 4.1%
- How the new-employer rate works
- 4.025% UI + 0.075% Re-employment Service Fund. The wage base jumped to $17,600 for 2026.
- Most a new employer pays per employee
- $721.60 (4.1% × $17,600)
- Experience-rated range (2026, as published)
- 1.7% to 9.5%
- 2025 average employer rate
- 3.16% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
- Agency
- NY Department of Labor
Register with NY Department of Labor when you first pay wages in New York; you get an account number for quarterly wage reports and tax payments.
Paid leave, disability and other New York payroll programs
- Paid Family Leave · employee-paid, withheld by you0.432% of wages, capped at $411.91 a yearCapped at $411.91 for 2026 ($451.81 in 2027).
- Disability benefits (DBL) employee share · employee-paid, withheld by you0.5% of wages, capped at $0.60 a weekEmployers may collect 0.5% of wages up to $0.60 a week; the employer pays the rest of the DBL premium.
- NY disability benefits (DBL) insurance · insurance you must buyEmployers must carry DBL coverage (with Paid Family Leave as a rider) from an insurer or the State Insurance Fund. Employees may be charged 0.5% of wages up to $0.60 a week; the employer pays the rest of the DBL premium, which varies by carrier.
Local payroll taxes in New York
- MCTMT — Zone 1 (New York City): Applies only if MCTD payroll exceeds $312,500 in a quarter. Rate rises with quarterly payroll: 0.055%, 0.115%, 0.60%, then 0.895% above $2.5M. source
- MCTMT — Zone 2 (Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, Dutchess): Applies only if MCTD payroll exceeds $312,500 in a quarter. Rate rises with quarterly payroll: 0.055%, 0.115%, 0.34%, then 0.635% above $2.5M. source
Federal payroll taxes every New York 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 New York 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.
- NY Paid Family Leave cap rises to $451.81 per employee in 2027.
Next for New York employers: New York paycheck calculator (employee withholding) · New York new hire reporting · New York payday & final paycheck rules · New York workers' comp · full payroll cost calculator
New York payroll tax FAQ
What is the New York SUTA rate for new employers in 2026?
4.1%. 4.025% UI + 0.075% Re-employment Service Fund. The wage base jumped to $17,600 for 2026.
What is the New York SUTA wage base for 2026?
$17,600 per employee. Once an employee's 2026 wages pass that amount, you stop paying New York unemployment tax on them for the rest of the year. That is the 20th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in New York?
No. In New York 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 New York employers pay?
Besides unemployment tax: Paid Family Leave (employee-paid): 0.432%. Capped at $411.91 for 2026 ($451.81 in 2027). Disability benefits (DBL) employee share (employee-paid): 0.5%. Employers may collect 0.5% of wages up to $0.60 a week; the employer pays the rest of the DBL premium. NY disability benefits (DBL) insurance: Employers must carry DBL coverage (with Paid Family Leave as a rider) from an insurer or the State Insurance Fund. Employees may be charged 0.5% of wages up to $0.60 a week; the employer pays the rest of the DBL premium, which varies by carrier. Some local payroll taxes also apply: MCTMT — Zone 1 (New York City) and MCTMT — Zone 2 (Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, Dutchess).
How much FUTA do New York 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 New York unemployment tax on time. New York is not a credit-reduction state for 2026.
How does my New York 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, NY Department of Labor assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 1.7% to 9.5%. Use the rate on your annual rate notice. The 2025 average employer rate in New York was 3.16% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12- NY DOL — UI rate information — UI wage base and rates
- NY DOL — NYS-45 quarterly reporting (wage base) — UI wage base and rates
- NY Paid Family Leave — 2026 updates — Paid Family Leave
- NY Workers' Compensation Board — disability benefits & PFL for employers — Disability benefits (DBL) employee share
- NY Tax Dept. — MCTMT for employers — MCTMT — Zone 1 (New York City)
- IRS Publication 15 (2026), Employer's Tax Guide
- IRS Topic 759, Form 940 — FUTA
- U.S. DOL ETA — Employer contribution rates, CY 2025
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General information, not tax advice. Rates change every year; confirm yours on the notice from NY Department of Labor before filing.