Workers' compensation cost varies more by state than almost any other business insurance line. The same class code, the same payroll, and the same clean loss history can produce premiums that differ by 3x depending on where the employees actually work. This guide gives you the 2026 average rate per $100 of payroll for all 50 states, the class-code rates that actually drive your bill, typical minimum premiums, and the four states where private carriers cannot write coverage at all.
Averages are for budgeting. To price your own business, use the Workers' Comp Instant Estimate at the top of this page — it applies your class code, payroll, and state modifier and returns a starting monthly range in about 15 seconds. From there KTL shops the risk across 20+ A-rated carriers.
How workers' comp premium is calculated
Every workers' comp quote in the United States follows the same formula: (Annual Payroll ÷ 100) × Class Code Rate × Experience Modifier × Carrier/State Factors, plus taxes, assessments, and any expense constant. The class code rate is filed by NCCI or a state rating bureau; the experience modifier (ex-mod) reflects your own three-year claim history; carrier scheduled credits and debits move the final number another 10–25% in either direction.
Worked example: a home care agency with $600,000 of caregiver payroll in Arizona at a $3.60 rate and a 0.95 ex-mod pays roughly ($600,000 ÷ 100) × $3.60 × 0.95 = $20,520 before taxes and credits. Move the same agency to California, where the same class code files closer to $5.60, and the premium jumps past $31,000 on identical payroll.
That is why a landscaper in California and a landscaper in Indiana pay wildly different premiums. The class code is the same. Everything else is not.
Average workers' comp cost by state (2026)
The table below shows the approximate blended premium per $100 of payroll across all class codes in each state, based on NCCI and independent state bureau filings for the 2025–2026 policy years, along with the typical minimum annual premium and the market type. "Monopolistic" means you must buy from the state fund. "Competitive fund" means a state fund quotes alongside private carriers.
| State | Avg rate / $100 | Typical minimum premium | Market |
|---|---|---|---|
| Alabama | $0.62 | $750 | Private |
| Alaska | $1.98 | $900 | Private |
| Arizona | $0.75 | $750 | Competitive fund (CopperPoint) |
| Arkansas | $0.50 | $600 | Private |
| California | $1.45 | $1,200–$2,500 | Competitive fund (State Fund) |
| Colorado | $0.79 | $800 | Competitive fund (Pinnacol) |
| Connecticut | $1.10 | $900 | Private |
| Delaware | $0.85 | $850 | Private |
| Florida | $0.90 | $1,000 | Private |
| Georgia | $0.88 | $750 | Private |
| Hawaii | $1.35 | $1,000 | Private |
| Idaho | $0.62 | $650 | Competitive fund (Idaho State Fund) |
| Illinois | $1.19 | $1,000 | Private |
| Indiana | $0.51 | $500 | Private |
| Iowa | $0.54 | $600 | Private |
| Kansas | $0.55 | $600 | Private |
| Kentucky | $0.60 | $650 | Competitive fund (KEMI) |
| Louisiana | $1.16 | $900 | Competitive fund (LWCC) |
| Maine | $0.70 | $700 | Competitive fund (MEMIC) |
| Maryland | $0.71 | $750 | Competitive fund (Chesapeake) |
| Massachusetts | $0.66 | $800 | Private |
| Michigan | $0.80 | $750 | Private |
| Minnesota | $0.75 | $750 | Competitive fund (SFM) |
| Mississippi | $0.55 | $600 | Private |
| Missouri | $0.57 | $650 | Competitive fund (MEM) |
| Montana | $0.85 | $800 | Competitive fund (MSF) |
| Nebraska | $0.68 | $650 | Private |
| Nevada | $0.82 | $800 | Private |
| New Hampshire | $0.72 | $700 | Private |
| New Jersey | $1.37 | $1,200 | Private |
| New Mexico | $0.55 | $650 | Competitive fund (NMMIC) |
| New York | $1.41 | $1,200–$2,000 | Competitive fund (NYSIF) |
| North Carolina | $0.68 | $700 | Private |
| North Dakota | $0.55 | State fund schedule | Monopolistic (WSI) |
| Ohio | $0.63 | State fund schedule | Monopolistic (BWC) |
| Oklahoma | $0.65 | $700 | Competitive fund (CompSource) |
| Oregon | $0.58 | $650 | Competitive fund (SAIF) |
| Pennsylvania | $0.85 | $850 | Competitive fund (SWIF) |
| Rhode Island | $0.98 | $850 | Competitive fund (Beacon) |
| South Carolina | $0.63 | $700 | Private |
| South Dakota | $0.60 | $600 | Private |
| Tennessee | $0.72 | $700 | Private |
| Texas | $0.65 | $700 | Private (coverage optional) |
| Utah | $0.61 | $650 | Competitive fund (WCF) |
| Vermont | $1.03 | $850 | Private |
| Virginia | $0.66 | $700 | Private |
| Washington | $1.10 | State fund schedule | Monopolistic (L&I) |
| West Virginia | $0.70 | $700 | Private |
| Wisconsin | $0.52 | $600 | Private |
| Wyoming | $0.90 | State fund schedule | Monopolistic (WC Division) |
Class code rates: what your industry actually pays
State averages hide the number that matters. Workers' comp is priced per NCCI class code, and the spread inside a single state is enormous — a clerical code can be under $0.20 per $100 of payroll while a roofing code in the same state exceeds $25. The table below shows typical national rate ranges for the class codes KTL writes most often.
| Class code | Description | Rate / $100 of payroll |
|---|---|---|
| 8810 | Clerical office employees | $0.12 – $0.35 |
| 8742 | Outside sales / messengers | $0.25 – $0.70 |
| 8832 | Physicians & medical office staff | $0.30 – $1.20 |
| 8835 | Home healthcare — professional & aides | $2.50 – $5.50 |
| 8829 | Nursing / residential care facilities | $3.00 – $6.50 |
| 9014 / 9170 | Janitorial & cleaning services | $3.50 – $7.00 |
| 0042 | Landscaping & lawn care | $5.00 – $10.00 |
| 5183 / 5187 | Plumbing & HVAC | $3.50 – $7.00 |
| 5645 | Carpentry — residential | $8.00 – $16.00 |
| 5551 | Roofing | $15.00 – $28.00 |
| 7380 | Drivers / NEMT & delivery | $4.00 – $8.00 |
| 9082 / 9083 | Restaurant & food service | $1.50 – $3.50 |
What a typical policy costs by business size
Putting the two tables together, here is what real accounts look like at 2026 rates for a clean loss history in a mid-cost state. Add roughly 50% in California and New York; subtract roughly 25% in Texas, Indiana, or Utah.
| Business | Annual payroll | Estimated annual premium |
|---|---|---|
| Home care agency, 10 caregivers | $320,000 | $8,000 – $17,600 |
| Home care agency, 40 caregivers | $1,280,000 | $32,000 – $70,400 |
| Cleaning company, 8 crew | $224,000 | $7,800 – $15,700 |
| HVAC contractor, 6 techs | $330,000 | $11,500 – $23,100 |
| Landscaper, 5 crew | $175,000 | $8,750 – $17,500 |
| Restaurant, 15 staff | $420,000 | $6,300 – $14,700 |
| Consulting firm, 4 clerical | $400,000 | $480 – $1,400 (minimum premium likely applies) |
Monopolistic state funds: North Dakota, Ohio, Washington, Wyoming
Four states do not allow private carriers to write standard workers' compensation. If you have employees in North Dakota, Ohio, Washington, or Wyoming, you must buy workers' comp directly from that state's fund — Workforce Safety & Insurance (ND), Ohio BWC, L&I (WA), or the Wyoming Workers' Compensation Division.
Private commercial packages in those states can still include employer's liability (Stop Gap) coverage, which fills the gap the state fund does not provide. If your policy is silent on Stop Gap and you have any exposure in those four states, you have a real coverage hole.
Competitive state funds vs. private market
Several states operate a competitive state fund that quotes alongside private carriers — California (State Fund), New York (NYSIF), Pennsylvania (SWIF), Colorado (Pinnacol), Utah (WCF), Kentucky (KEMI), Louisiana (LWCC), Missouri (Missouri Employers Mutual), Oklahoma (CompSource), Oregon (SAIF), Arizona (CopperPoint), Maine (MEMIC), Minnesota (SFM), Montana (Montana State Fund), New Mexico (NMMIC), Rhode Island (Beacon), and Idaho (Idaho State Insurance Fund).
In these states, a competitive shop should include the state fund plus at least three private A-rated carriers. The state fund is often the market of last resort for high-hazard classes but can also be the low bid for clean, hard-to-place risks.
Minimum premium by state
Almost every workers' comp policy has a minimum annual premium — the smallest amount the carrier will charge regardless of payroll. Minimums typically run $500 to $1,500 in low-cost states and $1,200 to $2,500 in California, New York, and New Jersey. Some monopolistic funds set the floor even higher.
For very small employers — a one-person S-corp or a two-employee shop — the minimum premium often drives the entire cost of the policy. If you are quoted $1,800 in California for $40,000 of clerical payroll, you are paying the minimum, not the rate.
What actually moves your rate
Four things move a workers' comp quote more than the state average: the class code assignment (a misclassified employee in a higher hazard code can double the premium), the experience modifier (an ex-mod of 0.85 vs. 1.15 is a 30% swing on the same payroll), the payroll split (segregating clerical payroll from field payroll can drop premium significantly), and the carrier's individual filed rate for that class code (private carriers deviate from bureau loss costs by different percentages).
A good broker fights all four levers. A bad broker quotes the state average and calls it a day.
Get your exact number in 15 seconds
State averages are useful for budgeting but not for buying. Use the Workers' Comp Instant Estimate at the top of this page to get a starting range for your specific class code, payroll, and state. From there, KTL benchmarks across 20+ A-rated carriers and the applicable state fund to lock in the actual lowest rate — usually well below the state blended average once class-code splits and ex-mod credits are applied.
KTL is a licensed broker in California (0D86601), Arizona (142446), and Nevada (173532), and we issue certificates of insurance the same business day once coverage is bound.