Texas Raising Unemployment Taxes

By Staff Report

Dec. 10, 2009

Texas state unemployment insurance rates will jump in 2010, the Texas Workforce Commission announced Tuesday, December 8. Texas joins a number of other states in increasing rates.

Texas’ increase raises the minimum state unemployment tax to 0.72 percent of the first $9,000 of an employee’s wages in 2010 from 0.26 percent in 2009.

That means the minimum tax rate will go to $64.80 for an employee who makes $9,000 or more in 2010 from $23.40 in 2009.

State unemployment taxes are experience-rated based on the number of unemployment claims filed against an employer. The more claims, the more an employer must pay.

The maximum state unemployment tax in Texas will rise to 8.6 percent of the first $9,000 in wages in 2010 from 6.26 percent in 2009.

For a worker earning more than $9,000, the tax under the maximum rate will go to $774 in 2010 from $563.40 in 2009.

The Texas Workforce Commission said the increase comes because of the amount of unemployment insurance benefits paid.

Approximately 67 percent of Texas employers pay the minimum rate, according to the Texas Workforce Commission. Only 3.3 percent of Texas employers pay the maximum rate.

Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog


Minimum Wage by State in 2023 – All You Need to Know

Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1.  Thr...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog


New Labor Laws Taking Effect in 2023

The new year is fast approaching, and with its arrival comes a host of new labor laws that will impact ...

labor laws, minimum wage, wage and hour law

workforce blog


Wage and Hour Laws in 2022: What Employers Need to Know

Whether a mom-and-pop shop with a handful of employees or a large corporation staffing thousands, compl...

compliance, wage and hour law