Where do these numbers come from?
- SSA2026 Social Security wage base ($184,500)2026
- IRSPublication 15 (2026): FICA and FUTA rates2026
- EY Tax NewsState unemployment wage bases and new-employer rates for 2026updated 29 Jul 2026
- OECDTaxing Wages 2026, comparative indicatorspublished April 2026
Checked Oct 23, 2026. A $75,000 salary in California: Social Security 6.2% = $4,650 (SSA 2026 wage base $184,500), Medicare 1.45% = $1,087.50, FUTA 0.6% × $7,000 = $42 (IRS Publication 15), California UI 3.4% + 0.1% ETT on the first $7,000 = $245 (EY 2026 chart). Total $81,024.50, the figure this calculator shows. Automated tests repeat this and 20 more US checks.
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FUTA in numbers
| Item | 2026 figure |
|---|---|
| Gross FUTA rate | 6.0% |
| Maximum state credit | 5.4% |
| Net rate for most employers | 0.6% |
| Wage base (per employee, per year) | $7,000 |
| Maximum per employee at 0.6% | $42 |
| Return | Form 940, filed once a year |
| Paid by | Employer only |
Who has to pay it
In general you owe FUTA if you paid $1,500 or more in wages in any calendar quarter, or had at least one employee for some part of a day in 20 or more different weeks, in this year or last year. Different tests apply to household employers and farm employers. Certain tax-exempt 501(c)(3) organizations are exempt from FUTA. Independent contractors are not covered, which is part of why worker classification matters.
Paying and filing
FUTA is reported annually on Form 940, normally due January 31 of the next year (February 10 if all deposits were made on time). Deposits are figured each quarter: if the FUTA tax owed for the quarter (plus any carried-over amount) is more than $500, deposit it by the last day of the month after the quarter ends; if it is $500 or less, carry it forward.
Credit reduction states
If a state has borrowed from the federal government to pay unemployment benefits and has not repaid the loan in time, employers in that state get a smaller credit and pay more than 0.6%. The Department of Labor publishes the list of credit reduction states each November; check it (and Schedule A of Form 940) before filing.
Examples
| Annual wages | Taxable for FUTA | FUTA at 0.6% |
|---|---|---|
| $3,000 | $3,000 | $18.00 |
| $7,000 | $7,000 | $42.00 |
| $40,000 | $7,000 | $42.00 |
| $100,000 | $7,000 | $42.00 |
Ten employees each earning over $7,000 cost $420 a year in FUTA at the normal 0.6% rate.
Sources: SSA 2026 fact sheet (Social Security wage base $184,500); IRS Publication 15 (2026); US DOL, FUTA credit reductions. State unemployment rates are new-employer rates for 2026; your assigned rate may differ.
Related
Frequently asked questions
What is the FUTA tax rate for 2026?
6.0% on the first $7,000 of wages, reduced to 0.6% for most employers by the 5.4% state credit.
Is FUTA taken out of employee paychecks?
No. FUTA is paid only by the employer.
What is the maximum FUTA tax per employee?
$42 a year at the 0.6% net rate, unless your state is a credit reduction state.
What form is used for FUTA?
Form 940, the employer’s annual federal unemployment tax return.