District of Columbia employer payroll tax calculator 2026
Hiring in District of Columbia? New District of Columbia employers pay 2.9% state unemployment tax on the first $9,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,343 a year in employer payroll taxes — $711.00 of it to District of Columbia.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (2.9% on $9,000.00) | $261.00 |
| D.C. Paid Family Leave tax (employer-only) (0.75% on $60,000.00) | $450.00 |
| Employer payroll taxes | $5,343.00 |
| Total cost before benefits | $65,343.00 |
Per two-week payroll: $2,513.19. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
District of Columbia unemployment tax (SUTA) for new employers
New employers pay 2.7% (or the prior year's average rate, if higher) plus the 0.2% administrative assessment, on the first $9,000. The rate is 2.7% new-employer rate + 0.2% administrative funding assessment.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay District of Columbia on time and FUTA is 0.6% on the first $7,000. If District of Columbia ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other District of Columbia payroll programs
- D.C. Paid Family Leave tax (employer-only): Private employers pay 0.75% of each covered employee's wages, with no cap; nothing is withheld from employees.
What an employee costs in District of Columbia
| Salary | Federal employer taxes | District of Columbia employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $561.00 | $43,663.00 | 9.2% |
| $60,000 | $4,632.00 | $711.00 | $65,343.00 | 8.9% |
| $100,000 | $7,692.00 | $1,011.00 | $108,703.00 | 8.7% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in District of Columbia?
About $43,663 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $561.00 of District of Columbia employer taxes, before benefits. That's $1,679.35 per two-week payroll.
How much does a $60,000 employee cost in District of Columbia?
About $65,343 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $711.00 of District of Columbia employer taxes, before benefits. That's $2,513.19 per two-week payroll.
How much does a $100,000 employee cost in District of Columbia?
About $108,703 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $1,011.00 of District of Columbia employer taxes, before benefits. That's $4,180.88 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,831 a year taken out of pay — federal income tax, their own Social Security and Medicare and District of Columbia taxes — and takes home $47,169 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,343.00 of employer taxes. See the employee's side line by line in the District of Columbia paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
District of Columbia figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- D.C. DOES — Tax rate questions — newly liable employers: the average rate of the preceding year or 2.7%, whichever is higher (checked 2026-09-28)
- D.C. Code § 51-103 — 0.2% administrative funding assessment paid by all employers; wages above $9,000 excluded
- D.C. Office of Paid Family Leave — Employer information — 0.75% of wages paid to each covered employee since July 1, 2024
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the District of Columbia SUTA rate for new employers?
2.9% in 2026 (2.7% new-employer rate + 0.2% administrative funding assessment), on the first $9,000 of each employee's wages. New employers pay 2.7% (or the prior year's average rate, if higher) plus the 0.2% administrative assessment, on the first $9,000.
What is the District of Columbia unemployment tax wage base for 2026?
$9,000 per employee per year.
How much does it cost to employ someone for $60,000 in District of Columbia?
About $65,343 a year before benefits: $4,632.00 of federal employer taxes and $711.00 for District of Columbia, at the new-employer rate with 5 employees.