Tennessee Ranks 26th On Unemployment Insurance Taxes
Published February 16, 2021
The Center Square –
Tennessee finished 26th in a recent study by the Tax Foundation that ranked which of the 50 states have the most business-friendly unemployment insurance tax structures.
The state’s ranking reflected a drop of two positions from its 2020 ranking, according to the foundation’s analysis, which is part of a wider study titled “2021 State Business Tax Climate Index.”
All states and the District of Columbia have unemployment insurance tax systems, which are federal-state programs that fund benefits to newly unemployed workers. Levies on employers fund the systems.
In the foundation’s analysis, those state tax systems that have low minimum and maximum rates, stick closely to the federal taxable pay levels ($7,000 in base pay), and don’t impose more surtaxes or additional benefits were rated the highest.
The Tax Foundation study rated the District of Columbia, but its ranking and score are separate from the 50 states.
Which States Have the Highest Unemployment Insurance Taxes?
| State | 2021 Rank (1 Is Highest) | Change from 2020 to 2021 | 2020 Rank | 2019 Rank | 2018 Rank |
| Alabama | 14 | 4 | 18 | 12 | 11 |
| Alaska | 45 | 1 | 46 | 35 | 25 |
| Arizona | 8 | -2 | 6 | 13 | 15 |
| Arkansas | 23 | 0 | 23 | 34 | 32 |
| California | 21 | 1 | 22 | 17 | 13 |
| Colorado | 41 | 2 | 43 | 40 | 35 |
| Connecticut | 22 | -1 | 21 | 23 | 19 |
| Delaware | 3 | 0 | 3 | 3 | 3 |
| Florida | 2 | 0 | 2 | 2 | 2 |
| Georgia | 39 | 0 | 39 | 38 | 38 |
| Hawaii | 25 | 3 | 28 | 26 | 27 |
| Idaho | 48 | 0 | 48 | 48 | 46 |
| Illinois | 43 | -3 | 40 | 42 | 42 |
| Indiana | 27 | -2 | 25 | 11 | 10 |
| Iowa | 37 | -2 | 35 | 33 | 34 |
| Kansas | 13 | 1 | 14 | 15 | 12 |
| Kentucky | 49 | 0 | 49 | 47 | 47 |
| Louisiana | 4 | 0 | 4 | 4 | 4 |
| Maine | 33 | -1 | 32 | 24 | 44 |
| Maryland | 34 | -1 | 33 | 28 | 24 |
| Massachusetts | 50 | 0 | 50 | 50 | 49 |
| Michigan | 18 | -1 | 17 | 49 | 48 |
| Minnesota | 32 | 2 | 34 | 25 | 37 |
| Mississippi | 5 | 0 | 5 | 5 | 5 |
| Missouri | 7 | 2 | 9 | 8 | 7 |
| Montana | 20 | 0 | 20 | 21 | 20 |
| Nebraska | 11 | 0 | 11 | 9 | 9 |
| Nevada | 47 | 0 | 47 | 45 | 45 |
| New Hampshire | 44 | 1 | 45 | 44 | 43 |
| New Jersey | 31 | -1 | 30 | 32 | 36 |
| New Mexico | 9 | -1 | 8 | 10 | 16 |
| New York | 38 | 0 | 38 | 31 | 30 |
| North Carolina | 10 | 0 | 10 | 7 | 6 |
| North Dakota | 12 | 1 | 13 | 14 | 14 |
| Ohio | 6 | 1 | 7 | 6 | 8 |
| Oklahoma | 1 | 0 | 1 | 1 | 1 |
| Oregon | 36 | 0 | 36 | 37 | 31 |
| Pennsylvania | 40 | 2 | 42 | 46 | 50 |
| Rhode Island | 30 | 1 | 31 | 29 | 23 |
| South Carolina | 24 | 2 | 26 | 27 | 29 |
| South Dakota | 42 | 2 | 44 | 39 | 39 |
| Tennessee | 26 | -2 | 24 | 22 | 22 |
| Texas | 16 | -4 | 12 | 18 | 26 |
| Utah | 17 | -2 | 15 | 16 | 21 |
| Vermont | 15 | 1 | 16 | 20 | 18 |
| Virginia | 46 | -5 | 41 | 43 | 41 |
| Washington | 19 | 0 | 19 | 19 | 17 |
| West Virginia | 28 | 1 | 29 | 30 | 28 |
| Wisconsin | 35 | 2 | 37 | 41 | 40 |
| Wyoming | 29 | -2 | 27 | 36 | 33 |
| District of Columbia | 37 | -2 | 35 | 33 | 30 |
