Employee Cost: Texas vs Wisconsin (2026)

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

At a $60,000 salary

Texas saves $395/employee/year

$65,337 in Texas vs $65,732 in Wisconsin

Texas

$65,337

1.09x salary

Wisconsin

$65,732

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component TX WI 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) $135 $392 -$257
Workers' Compensation $570 $708 -$138
Total Employer Cost $65,337 $65,732 -$395

Tax Rate Comparison

Rate Texas Wisconsin
SUTA Rate Range 0.31% – 6.31% 0.0% – 9.0%
SUTA Typical Rate 1.5% 2.8%
SUTA Wage Base $9,000 $14,000
Workers' Comp Rate 0.95% 1.18%
State Income Tax No Yes

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Texas over Wisconsin saves $395 per employee per year in employer-side payroll costs alone. For a team of 10, that's $3,950 annually.

The biggest difference comes from SUTA (state unemployment tax) — Texas charges 1.5% vs Wisconsin's 2.8%. 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 TX Total WI Total Difference
$30,000 $32,757 $33,083 -$326
$40,000 $43,617 $43,966 -$349
$50,000 $54,477 $54,849 -$372
$60,000 $65,337 $65,732 -$395
$75,000 $81,627 $82,057 -$430
$100,000 $108,777 $109,264 -$487
$125,000 $135,927 $136,472 -$545
$150,000 $163,077 $163,679 -$602

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

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.