Employee Cost: District of Columbia vs Tennessee (2026)
Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.
At a $60,000 salary
Tennessee saves $366/employee/year
$65,751 in District of Columbia vs $65,385 in Tennessee
District of Columbia
$65,751
1.1x salary
Tennessee
$65,385
1.09x salary
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | DC | TN | 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) | $153 | $105 | +$48 |
| Workers' Compensation | $810 | $648 | +$162 |
| State-Mandated Insurance | $156 | $0 | +$156 |
| Total Employer Cost | $65,751 | $65,385 | +$366 |
Tax Rate Comparison
| Rate | District of Columbia | Tennessee |
|---|---|---|
| SUTA Rate Range | 0.16% – 7.0% | 0.1% – 5.0% |
| SUTA Typical Rate | 1.7% | 1.5% |
| SUTA Wage Base | $9,000 | $7,000 |
| Workers' Comp Rate | 1.35% | 1.08% |
| State Income Tax | Yes | No |
| Paid Family Leave | 0.26% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Tennessee over District of Columbia saves $366 per employee per year in employer-side payroll costs alone. For a team of 10, that's $3,660 annually.
The biggest difference comes from workers' compensation rates — District of Columbia charges 1.35% vs Tennessee's 1.08%. 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.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | DC Total | TN Total | Difference |
|---|---|---|---|
| $30,000 | $32,973 | $32,766 | +$207 |
| $40,000 | $43,899 | $43,639 | +$260 |
| $50,000 | $54,825 | $54,512 | +$313 |
| $60,000 | $65,751 | $65,385 | +$366 |
| $75,000 | $82,140 | $81,695 | +$446 |
| $100,000 | $109,455 | $108,877 | +$578 |
| $125,000 | $136,770 | $136,060 | +$711 |
| $150,000 | $164,085 | $163,242 | +$843 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of DC.
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