Workers’ comp cost by state: employer cost and rate rankings

Two official measures of state workers’ comp cost

Two official datasets compare workers’ comp cost across all 50 states and DC. They answer different questions.

NASI employer cost per $100 of covered wages. The National Academy of Social Insurance (NASI) adds up what employers spent on workers’ compensation in each calendar year. For insured employers that is premiums paid during the year plus any claims they paid under a deductible. For self-insured employers it is the benefits they paid plus administrative costs. NASI divides the total by the wages of workers covered by workers’ comp⁠¹. The latest report, published August 11, 2026, covers 2019 through 2023. Nationally, employers spent $106.55 billion in 2023, or $0.98 per $100 of covered wages. The national figure includes federal programs⁠¹. The figure is an average across every employer and every industry in the state, after experience modifications, discounts and deductibles. It is two to three years old when it is published.

Oregon’s premium rate index. Oregon’s Department of Consumer and Business Services (DCBS) publishes a ranking every two years. The 2024 study took each state’s rates for the same 53 class codes (Oregon’s 50 classes with the most losses, with the restaurant class split into four), applied each state’s average insurer expense loading, and weighted the result by Oregon’s payroll in those classes. The result is one index per state, in dollars per $100 of payroll⁠². It used rates in effect on January 1, 2024. Its median state was Georgia, at $1.09⁠². Because every state is priced on the same mix of jobs, the index isolates price differences from differences in each state’s economy. DCBS warns that the index rates are not the premium rates employers in a state actually pay⁠². The index leaves out experience modifications, schedule credits, premium discounts, deductible credits and dividends⁠². As of October 13, 2026, DCBS had not posted a 2026 study.

Neither dataset gives the rate for your business. Your premium is your payroll in each class code, multiplied by the class rate and adjusted by your experience modification, and class rates within one state differ far more than state averages do: Ohio’s private-employer base rates effective July 1, 2026 run from $0.0129 to $37.09 per $100 of payroll across 501 classes⁠¹⁵, against a $0.50 to $2.52 spread in Oregon’s state index. For actual rates by class, see the Ohio, Washington and Wyoming rate pages and the class code guide.

The state table

Cost: Employer cost per $100 of covered wages: premiums paid by insured employers plus benefits and administrative costs of self-insured employers, divided by the wages of workers covered by workers’ compensation. The United States figure is NASI’s national total, which includes federal programs. National Academy of Social Insurance (NASI), published 11 Aug 2026. Rate index: Oregon’s index is the average premium per $100 of payroll that each state’s manual rates would produce for the same 50 risk classes (53 class codes), weighted by Oregon payroll; it is not an actual statewide average rate. Rank 1 is the most expensive of 51 jurisdictions. Oregon Department of Consumer and Business Services (DCBS).

Click a column header to sort. The rate rank counts 51 jurisdictions, and rank 1 is the most expensive. Washington’s NASI figure includes the share workers pay: in 2023 employees paid 25 percent of state fund premiums⁠¹.

Where costs were highest and lowest in 2023

On NASI’s measure, the most expensive jurisdictions in 2023 were⁠¹:

• Hawaii: $1.62
• Wyoming: $1.57
• California: $1.43
• Alaska: $1.41
• Montana: $1.39
• Idaho: $1.34

The least expensive were⁠¹:

• Washington, DC: $0.33
• Texas: $0.39
• Virginia: $0.48
• Michigan: $0.56
• Indiana: $0.57

Because NASI divides each state’s actual spending by its actual payroll, a high figure can reflect a state’s mix of work as much as its prices. It does not by itself mean that the same job is priced higher there.

Oregon’s index removes that effect, and its list looks different. The highest 2024 indexes were Hawaii ($2.52, 231% of the median), New Jersey ($2.16), New York ($1.98), California ($1.86) and Vermont ($1.60). The lowest were North Dakota ($0.50), Arkansas ($0.53), West Virginia ($0.54), Utah ($0.63) and Ohio ($0.68)⁠². Hawaii tops both lists.

Why the two rankings disagree

The table shows large gaps between a state’s cost rank and its rate rank. Neither NASI nor DCBS explains individual gaps; the reasons below follow from how each measure is built.

• Industry mix. NASI measures real payroll; Oregon prices a fixed basket of jobs. Wyoming is second on cost ($1.57) but eighth on rates ($1.41). Alaska is fourth on cost ($1.41) but 20th on rates ($1.16). Idaho is sixth on cost ($1.34) but 25th on rates ($1.10)⁠¹⁠². A state whose payroll leans toward higher-rated classes than Oregon’s weights scores higher on cost than on rates.
• Wage levels. NASI divides by wages, so states where a large share of payroll is in high-paid office work show a low cost per $100. Washington, DC has the lowest cost ($0.33) but ranks 43rd, not last, on rates ($0.73). New York is 13th on cost ($1.12) but third on rates ($1.98)⁠¹⁠².
• List price versus price paid. Oregon uses manual rates before experience mods, schedule credits, dividends and deductibles. NASI counts what employers actually paid after all of those. New Jersey ranks second on rates ($2.16) but eighth on cost ($1.27). Illinois ranks 13th on rates ($1.34) but 35th on cost ($0.77)⁠¹⁠².
• Timing. NASI counts premiums paid during calendar 2023, which come from policies written in 2022 and 2023. Oregon’s index uses rates in effect on January 1, 2024. Any state that changed rates around 2023 looks different on the two measures.

West Virginia shows the gap most clearly. It is 16th on cost at $1.05 per $100 of wages, but 49th on rates at $0.54⁠¹⁠².

Use Oregon’s index to compare what the same work would cost in two states, for example when deciding where to open a location. Use NASI to see what employers in a state actually spend on workers’ comp in total.

How much costs fell from 2019 to 2023

NASI’s cost per $100 of wages fell in 50 of 51 jurisdictions between 2019 and 2023. Nationally it fell from $1.17 to $0.98, a 16% decline⁠¹. Because the measure divides by wages, it falls when wages grow faster than premiums, even where rates did not change. The largest declines (our calculation from NASI’s figures) were:

Scroll the table sideways to see every column.

The smallest changes were in Hawaii (up 3%, from $1.57 to $1.62), Oregon (down 4%), Massachusetts (down 7%), Nevada (down 7%) and Missouri (down 8%)⁠¹. In NASI’s spreadsheet, eight jurisdictions’ costs rose from 2022 to 2023, including Arkansas, which went from $0.56 to $0.57⁠¹.

The four state-fund-only states

North Dakota, Ohio, Washington and Wyoming have exclusive state funds: employers buy standard workers’ comp from the state fund at rates the fund sets, and private insurers write only side coverage: liability insurance the fund cannot provide, excess coverage or federal Longshore Act coverage⁠¹. Ohio and Washington also have self-insured employers, who paid 19% and 22% of 2023 benefits there; North Dakota and Wyoming had none⁠¹. On the two measures these four states land far apart:

Sources: NASI⁠¹; Oregon DCBS⁠².

Ohio is among the cheapest states on both measures (45th on cost, 47th on rates). North Dakota has the lowest rate index of all but sits mid-table on cost (34th), and Wyoming is second on cost. Washington’s figures include the share workers pay. Washington’s Department of Labor & Industries puts that at about 25 percent of the premium, with employers paying about 75 percent⁠⁷.

Who must carry coverage in each of these states is set out in workers’ comp requirements by state.

Rate decisions after the data: 2025 and 2026

Both datasets were collected before the rate changes below. These are approved or filed decisions by state regulators and rating bureaus, with their effective dates. Each figure is a statewide average, and individual class rates move by more or less.

Scroll the table sideways to see every column.

New York. New York ranked third on Oregon’s 2024 index. Its regulator approved an average 22% cut in premium rates from October 1, 2026, which it estimated at more than $1 billion in total, or an average of $1,779 per policyholder⁠⁵. DFS says approved rate decreases have averaged 10.3% a year over the six years since 2020⁠⁵. Its 2024 index of $1.98 was measured before this cut.

California. California’s rates are advisory, and each insurer files its own⁠⁴. The Insurance Commissioner adopted an average claims cost benchmark of $1.65 per $100 of payroll for September 1, 2026⁠³. That is 6.6% above the revised $1.55 benchmark from September 2025. It is below the 10.4% increase ($1.71) that the rating bureau, the WCIRB, had asked for⁠⁴. The benchmark covers expected claims and claim-handling costs only, not underwriting expenses or profit⁠⁴. Insurers actually charged an average of $1.56 per $100 of payroll in 2025, down from $1.58 in 2024 and $1.60 in 2023⁠⁴.

Florida, Ohio and Wyoming. All three continued long runs of cuts. Florida’s 6.9% decrease was its ninth in a row⁠⁶. Ohio’s Bureau of Workers’ Compensation says its rates are down 50% since 2019 and 70% since 2011⁠⁸. Wyoming’s Department of Workforce Services proposed a 2026 overall base rate change of -15.0% from 2025, with individual classes down 2.25% to 27.75%⁠⁹; the 2026 rates took effect January 1, 2026⁠¹⁰. Its 2027 proposal is a further 2.0% cut, with individual classes ranging from a 16.7% decrease to a 12.5% increase⁠¹⁰.

Washington. Washington raised rates instead. L&I set the 2026 increase below what it expected to need for 2026 claim costs and covered the difference from its contingency reserve⁠⁷.

Using these figures for a budget

To budget, use the table only to put a state in context. Start the estimate from your class codes and payroll, then compare your quote with the official class rates and your state’s latest filing. In a monopolistic state, the state fund’s published rate for your class is the starting price; your claims history and the fund’s own programs then adjust it⁠⁸. Elsewhere, insurers apply their own loss cost multipliers or deviations to bureau loss costs or rates⁠². How workers’ comp is priced explains each step. The calculator applies official class rates to your payroll.

Sources

1. 1
   National Academy of Social Insurance, Workers’ Compensation: Benefits, Costs, and Coverage, 2023 Data (Table 14) Checked 13 Oct 2026 · Back to text ↑
2. 2
   Oregon Department of Consumer and Business Services, 2024 Oregon Workers’ Compensation Premium Rate Ranking Checked 13 Oct 2026 · Back to text ↑
3. 3
   California Department of Insurance, Decision and Order: September 1, 2026 Workers’ Compensation Claims Cost Benchmark Checked 13 Oct 2026 · Back to text ↑
4. 4
   California Department of Insurance, Proposed Decision: September 1, 2026 Claims Cost Benchmark and Pure Premium Rates Checked 13 Oct 2026 · Back to text ↑
5. 5
   New York State Department of Financial Services, Governor Hochul announces over $1.7 billion in workers’ compensation insurance savings (press release, July 15, 2026) Checked 13 Oct 2026 · Back to text ↑
6. 6
   Florida Office of Insurance Regulation, Commissioner approves 6.9% rate decrease for Florida workers’ compensation policies (Nov. 17, 2025) Checked 13 Oct 2026 · Back to text ↑
7. 7
   Washington State Department of Labor & Industries, Washington workers’ comp insurance average premium will rise about 4.9% in 2026 (Nov. 26, 2025) Checked 13 Oct 2026 · Back to text ↑
8. 8
   Ohio Bureau of Workers’ Compensation, Ohio employers save $10 million with new rate cut (Feb. 27, 2026) Checked 13 Oct 2026 · Back to text ↑
9. 9
   Wyoming Department of Workforce Services, Notice of hearing: proposed 2026 workers’ compensation employer industry base rates Checked 13 Oct 2026 · Back to text ↑
10. 10
    Wyoming Department of Workforce Services, Proposed 2027 workers’ compensation employer industry base rates Checked 13 Oct 2026 · Back to text ↑
11. 11
    Compensation Advisory Organization of Michigan, CAOM Circular 369: Statewide average advisory pure premium, effective January 1, 2027 Checked 13 Oct 2026 · Back to text ↑
12. 12
    Minnesota Workers’ Compensation Insurers Association, Circular Letter 26-1880: Assigned Risk Plan rates effective January 1, 2027 Checked 13 Oct 2026 · Back to text ↑
13. 13
    Ohio Bureau of Workers’ Compensation, Bureau of Workers’ Compensation base rates effective July 1, 2026 (Ohio Administrative Code 4123-17-06, Appendix A) Checked 13 Oct 2026 · Back to text ↑
14. 14
    Workers’ Compensation Rating and Inspection Bureau of Massachusetts, Massachusetts Workers’ Compensation Rate Filing, 2025 Checked 13 Oct 2026 · Back to text ↑
15. 15
    Delaware Compensation Rating Bureau, DCRB Filing No. 2602: residual market rates and voluntary loss costs proposed effective December 1, 2026 Checked 13 Oct 2026 · Back to text ↑

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