TEXAS – The Texas Workforce Commission (TWC) announced that the average unemployment insurance (UI) tax rate for all employers in the state will be 1.16% for calendar year (CY) 2023. Last year, the average tax rate was 1.35%.
The minimum tax rate is paid by more than 370 thousand employers, representing 61.5% of experienced employers. The minimum UI tax paid by Texas employers in CY 2023 will be 0.23%, which is 0.08 percentage points lower than the 0.31% in CY 2022.
TWC indicated that these employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income to state workers who lose their source of income through no fault of their own.
An experience rate is determined by the amount of an employer’s taxable wages and the amount of UI benefits that have been paid to former workers and charged to the employer’s account during the past three years.
An employer paying the standard minimum tax will disburse $20.70 per employee in CY 2023 from the base of $9,000 in wages per worker, compared to $27.90 in 2022.
The average tax rate for experienced employers is 0.89%. The top UI tax rate paid by 4.2% of Texas employers will be 6.23%, down 0.08 percentage points from 6.31% in CY 2022.
TWC and the state’s 28 local workforce boards are committed to helping UI claimants return to work as soon as possible. Because the Texas Unemployment Compensation Trust Fund has increased above its minimum balance required by law.
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