New York vs North Dakota: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,942 in New York and $65,834 in North Dakota. North Dakota saves $108/year per hire.
North Dakota is $108 per year cheaper than New York for a $60,000 employee in 2026, with total employer costs of $65,834 vs $65,942 including all mandatory payroll taxes.
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At a $60,000 salary
North Dakota saves $108/employee/year
$65,942 in New York vs $65,834 in North Dakota
New York
$65,942
1.1x salary
North Dakota
$65,834
1.1x salary
Shareable Insights
New York adds $60 in mandatory programs
Disability insurance and paid family leave that North Dakota doesn't require.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | NY | ND | 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) | $440 | $494 | -$54 |
| Workers' Compensation | $810 | $708 | +$102 |
| State-Mandated Insurance | $60 | $0 | +$60 |
| Total Employer Cost | $65,942 | $65,834 | +$108 |
Tax Rate Comparison
| Rate | New York | North Dakota |
|---|---|---|
| SUTA Rate Range | 0.13% – 8.9% | 0.08% – 9.75% |
| SUTA Typical Rate | 2.5% | 1.06% |
| SUTA Wage Base | $17,600 | $46,600 |
| Workers' Comp Rate | 1.35% | 1.18% |
| State Income Tax | Yes | Yes |
| Disability Insurance | 0.1% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing North Dakota over New York saves $108 per employee per year in employer-side payroll costs alone. For a team of 10, that's $1,080 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from workers' compensation rates — New York charges 1.35% of payroll vs North Dakota's 1.18%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.
A notable difference between these states is mandatory benefit programs. New York requires employer contributions to disability insurance programs that North Dakota does not mandate — adding $60 per employee annually.
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.
Choosing Between New York and North Dakota?
Cost alone favors North Dakota: At a $60K salary, you save $108 per employee — a real number that compounds across a growing team. At 20 employees, that's $2,161/year before factoring in any raises.
When New York might still make sense: If your business depends on talent concentrated in New York — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $108/employee savings a strong argument for North Dakota-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. New York has state income tax; North Dakota has state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
New York
New York has a high employer tax profile with a $17,600 SUTA wage base, disability insurance contributions, and among the highest workers' compensation costs of any major state.
financial services, healthcare, technology & media
New York City employers face additional local taxes and mandatory benefits not captured in state-level SUTA figures; real hiring costs in NYC are materially higher than upstate New York.
North Dakota
North Dakota uses a state-managed workers' compensation system (WSI) and has a $46,600 SUTA wage base, reflecting full reserve funding from its energy-sector boom years.
oil & gas (Bakken shale), agriculture, healthcare
North Dakota's energy sector wages set the regional floor; even service employers offer above-average pay to compete with oil patch wages during boom cycles.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- State income tax applies — factor into total compensation packages
- Above-average SUTA rate (2.5% on $17,600 wage base) — one of the higher state unemployment rates nationally
- Workers' comp rate 1.35% — near national average, varies by industry classification
- Mandatory disability insurance (0.1%) — required employer contribution on top of federal obligations
- State income tax applies — factor into total compensation packages
- Low SUTA rate (1.06% on $46,600 wage base) — below-average unemployment insurance cost
- Workers' comp rate 1.18% — near national average, varies by industry classification
Hiring Strategy Takeaway
The $108 per-employee cost gap at $60K salary is primarily driven by workers' compensation rates (NY: 1.35% vs ND: 1.18%). For a growing business, this difference compounds quickly — a 10-person team in North Dakota costs $1,080 less annually than the same team in New York, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | NY Total | ND Total | Difference |
|---|---|---|---|
| $30,000 | $33,212 | $33,009 | +$203 |
| $40,000 | $44,122 | $43,998 | +$124 |
| $50,000 | $55,032 | $54,951 | +$81 |
| $60,000 | $65,942 | $65,834 | +$108 |
| $75,000 | $82,307 | $82,158 | +$149 |
| $100,000 | $109,582 | $109,366 | +$216 |
| $125,000 | $136,857 | $136,573 | +$284 |
| $150,000 | $164,132 | $163,781 | +$351 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of NY.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
New York
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