Employee Cost: Arizona vs Nevada (2026)

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

At a $60,000 salary

Arizona saves $569/employee/year

$65,362 in Arizona vs $65,931 in Nevada

Arizona

$65,362

1.09x salary

Nevada

$65,931

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AZ NV 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 $711 -$551
Workers' Compensation $570 $588 -$18
Total Employer Cost $65,362 $65,931 -$569

Tax Rate Comparison

Rate Arizona Nevada
SUTA Rate Range 0.05% – 5.6% 0.25% – 5.25%
SUTA Typical Rate 2.0% 1.75%
SUTA Wage Base $8,000 $40,600
Workers' Comp Rate 0.95% 0.98%
State Income Tax Yes No

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Arizona over Nevada saves $569 per employee per year in employer-side payroll costs alone. For a team of 10, that's $5,685 annually.

The biggest difference comes from SUTA (state unemployment tax) — Arizona charges 2.0% vs Nevada's 1.75%. 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 NV Total Difference
$30,000 $32,782 $33,156 -$374
$40,000 $43,642 $44,194 -$552
$50,000 $54,502 $55,068 -$566
$60,000 $65,362 $65,931 -$569
$75,000 $81,652 $82,225 -$573
$100,000 $108,802 $109,383 -$581
$125,000 $135,952 $136,540 -$588
$150,000 $163,102 $163,698 -$596

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

Get Free Business Tips

Join small business owners getting weekly financial tips and calculator updates. No spam, unsubscribe anytime.

We respect your privacy. Unsubscribe with one click.