Payroll tax requirements vary significantly by state. From state income tax withholding and State Unemployment Insurance (SUI) wage caps to mandatory paid family leave programs, use this directory to verify employer obligations across the country.
Select a state below to view tax withholding guidelines, agency links, and compliance details:
Withholding Agency: Employment Development Department (EDD)
California features graduated personal income tax rates up to 13.3%, mandatory State Disability Insurance (SDI) with uncapped wages, and an SUI wage base of $7,000.
Official California EDD Portal →Withholding Agency: NY Department of Taxation and Finance (DTF)
New York has graduated state income tax rates, mandatory Paid Family Leave (PFL) and statutory disability, plus local income tax withholding for New York City and Yonkers residents.
Official New York Tax Portal →Agency: Texas Workforce Commission (TWC)
Texas has no individual state income tax. Employers are not required to withhold state income tax, but must register with TWC for State Unemployment Insurance (SUI wage base $9,000).
Official Texas Workforce Commission →Agency: Florida Department of Revenue (FDOR)
Florida has no personal income tax. Employers do not withhold state income tax, but must remit Florida Reemployment Tax (SUI) on the first $7,000 of wages per employee.
Official Florida DOR Portal →Agency: Illinois Department of Revenue (IDOR) & IDES
Illinois levies a flat state income tax rate of 4.95%. Employers report unemployment taxes to the Illinois Department of Employment Security (IDES).
Official Illinois Tax Portal →Agency: PA Department of Revenue
Pennsylvania has a flat 3.07% state income tax, along with mandatory Local Earned Income Tax (EIT) withheld by employers and Pennsylvania Unemployment Compensation contributions.
Official Pennsylvania Revenue Portal →Agency: Georgia Department of Revenue (DOR) & GDOL
Georgia has transitioned toward a flat individual income tax rate. Employers file withholding via the Georgia Tax Center (GTC) and SUI through the Department of Labor.
Official Georgia DOR Portal →Agency: Ohio Department of Taxation (ODT)
Ohio features graduated state income tax brackets, municipal income tax withholding across over 600 cities, and school district income taxes.
Official Ohio Department of Taxation →Agency: Employment Security Department (ESD)
Washington has no general personal income tax, but employers manage Paid Family and Medical Leave (PFML), WA Cares Fund long-term care deductions, and high SUI taxable wage bases.
Official Washington ESD Portal →Nine states do not levy an individual state income tax on earned wages. While payroll calculations are simplified because there is no state income tax withholding, employers must still meet other employment tax obligations:
| State | Earned Wage Income Tax | SUI Wage Base | Special Employer Programs |
|---|---|---|---|
| Alaska | None | High ($49,000+) | Employee contributes to SUI |
| Florida | None | $7,000 | Florida Reemployment Tax |
| Nevada | None | $40,000+ | Modified Business Tax (MBT) |
| New Hampshire | Dividends/Interest only | $14,000 | Voluntary Paid Family Leave |
| South Dakota | None | $15,000 | Standard SUI rules |
| Tennessee | None | $7,000 | Standard SUI rules |
| Texas | None | $9,000 | Texas Workforce Commission rules |
| Washington | None (excise on capital gains) | High ($68,000+) | Mandatory WA PFML & WA Cares |
| Wyoming | None | $30,000+ | Standard SUI rules |
Download the SUI wage-base table as CSV or JSON (CC BY 4.0). See how to cite us and get outreach templates.
Under general tax nexus rules, employers must register, withhold state income tax, and pay SUI in the state where the employee physically sits and performs work, even if the business is located in another state.
Several neighboring states (such as Pennsylvania and New Jersey, or Illinois and Iowa) have reciprocal agreements. These allow employees living in one state and working in another to pay income taxes only to their home state of residence.
A small number of states (including New York, Pennsylvania, and Nebraska) enforce a "convenience rule", which taxes remote employees based on their company's assigned office unless the remote arrangement is an absolute business necessity.
Multi-state tax compliance is one of the top reasons small businesses adopt automated payroll software. Platforms like Gusto, QuickBooks, and ADP handle multi-state registrations, tax withholdings, and filings.
Compare Multi-State Software Providers →Nine U.S. states have no individual earned income tax: Alaska, Florida, Nevada, New Hampshire (which taxes only dividend and interest income), South Dakota, Tennessee, Texas, Washington, and Wyoming. Employers must still register for State Unemployment Insurance (SUI).
In general, employers must withhold state income tax and pay State Unemployment Insurance in the state where the employee physically performs the work, not necessarily where the company is headquartered.
SUI is an employer-paid state tax that funds unemployment benefits. Each state sets an annual taxable wage base (from $7,000 up to over $60,000) and assigns an experience rate to each employer based on workforce turnover.