Employee Cost: Arizona vs Delaware (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Arizona saves $208/employee/year

$65,362 in Arizona vs $65,570 in Delaware

Arizona

$65,362

1.09x salary

Delaware

$65,570

1.09x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AZ DE Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $160 $158 +$3
Workers' Compensation $570 $780 -$210
Total Employer Cost $65,362 $65,570 -$208

Tax Rate Comparison

Rate Arizona Delaware
SUTA Rate Range 0.05% – 5.6% 0.1% – 8.0%
SUTA Typical Rate 2.0% 1.5%
SUTA Wage Base $8,000 $10,500
Workers' Comp Rate 0.95% 1.3%
State Income Tax Yes Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Arizona over Delaware saves $208 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,075 annually.

The biggest difference comes from workers' compensation rates — Arizona charges 0.95% vs Delaware's 1.3%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary AZ Total DE Total Difference
$30,000 $32,782 $32,885 -$103
$40,000 $43,642 $43,780 -$138
$50,000 $54,502 $54,675 -$173
$60,000 $65,362 $65,570 -$208
$75,000 $81,652 $81,912 -$260
$100,000 $108,802 $109,150 -$348
$125,000 $135,952 $136,387 -$435
$150,000 $163,102 $163,625 -$523

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of AZ.

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