Employee Cost: Colorado vs District of Columbia (2026)

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

At a $60,000 salary

District of Columbia saves $90/employee/year

$65,841 in Colorado vs $65,751 in District of Columbia

Colorado

$65,841

1.1x salary

District of Columbia

$65,751

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component CO DC 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) $405 $153 +$252
Workers' Compensation $534 $810 -$276
State-Mandated Insurance $270 $156 +$114
Total Employer Cost $65,841 $65,751 +$90

Tax Rate Comparison

Rate Colorado District of Columbia
SUTA Rate Range 0.64% – 5.11% 0.16% – 7.0%
SUTA Typical Rate 1.7% 1.7%
SUTA Wage Base $23,800 $9,000
Workers' Comp Rate 0.89% 1.35%
State Income Tax Yes Yes
Paid Family Leave 0.45% 0.26%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing District of Columbia over Colorado saves $90 per employee per year in employer-side payroll costs alone. For a team of 10, that's $896 annually.

The biggest difference comes from workers' compensation rates — Colorado charges 0.89% vs District of Columbia's 1.35%. 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 CO Total DC Total Difference
$30,000 $33,144 $32,973 +$171
$40,000 $44,043 $43,899 +$144
$50,000 $54,942 $54,825 +$117
$60,000 $65,841 $65,751 +$90
$75,000 $82,189 $82,140 +$49
$100,000 $109,437 $109,455 -$18
$125,000 $136,684 $136,770 -$86
$150,000 $163,932 $164,085 -$153

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

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