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Virginia Payroll Taxes for Employers (2026): SUTA and State Programs

Last updated: 2026-10-12 · 2026 rates checked against Virginia Employment Commission's own pages and the other official sources below

Virginia employers pay state unemployment tax (SUTA) on the first $8,000 of each employee's wages in 2026, and new employers pay 2.5% — at most $200.00 per employee for the year. Every Virginia 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
$8,000
per employee, 2026
New-employer rate
2.5%
2026
New-employer max
$200.00
SUTA per employee per year
FUTA
0.6%
$42 per employee

What will payroll taxes cost me in Virginia?

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

Virginia employer payroll tax estimator · 2026

Runs in your browser · nothing is sent anywhere
2.5% is the 2026 new-employer rate. Enter your assigned rate once you have one.
Estimated annual employer payroll taxes
TaxPer year
Virginia unemployment (SUTA)
2.5% × first $8,000 per employee
$1,000
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$20,335
Per employee$4,067

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

Virginia unemployment insurance tax (SUTA) in 2026

2026 taxable wage base
$8,000 per employee (46th highest of 51)
New-employer rate
2.5%
How the new-employer rate works
2.5% plus add-ons (pool cost charge; fund-building charge only when the trust fund is low). Out-of-state contractors 6.2%.
Most a new employer pays per employee
$200.00 (2.5% × $8,000)
Experience-rated range (2026, as published)
0.1% to 6.2%
2025 average employer rate
0.64% of taxable wages (U.S. DOL)
Employee contribution
None — employer-paid only
Agency
Virginia Employment Commission

Same $8,000 wage base as Alabama and Arizona. Register with Virginia Employment Commission when you first pay wages in Virginia; you get an account number for quarterly wage reports and tax payments.

Federal payroll taxes every Virginia 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 Virginia 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 Virginia employers: Virginia paycheck calculator (employee withholding) · Virginia new hire reporting · Virginia payday & final paycheck rules · Virginia workers' comp · full payroll cost calculator

Virginia payroll tax FAQ

What is the Virginia SUTA rate for new employers in 2026?

2.5%. 2.5% plus add-ons (pool cost charge; fund-building charge only when the trust fund is low). Out-of-state contractors 6.2%.

What is the Virginia SUTA wage base for 2026?

$8,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Virginia unemployment tax on them for the rest of the year. That is the 46th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).

Do employees pay unemployment tax in Virginia?

No. In Virginia 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 Virginia employers pay?

For 2026, Virginia has no statewide paid-leave or disability payroll tax, so the state-level employer tax is unemployment insurance. You still withhold any state income tax from employees' pay.

How much FUTA do Virginia 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 Virginia unemployment tax on time. Virginia is not a credit-reduction state for 2026.

How does my Virginia 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, Virginia Employment Commission assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.1% to 6.2%. Use the rate on your annual rate notice. The 2025 average employer rate in Virginia was 0.64% of taxable wages.

Official Sources

Figures checked against these sources on 2026-10-12

Related Resources on This Site

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General information, not tax advice. Rates change every year; confirm yours on the notice from Virginia Employment Commission before filing.