Southeast Employee Cost by State (2026)
State-by-state employer payroll costs across the Southeast at all salary levels. Regional averages, state rankings, and key cost drivers.
Hiring a $60,000/year employee in the Southeast costs employers an average of $65,440 in 2026 — 0.6% below the national average of $65,802. The lowest-cost state is Virginia ($65,285) and the highest is West Virginia ($65,698).
The Southeast offers some of the most employer-friendly payroll tax environments in the country. Florida and Tennessee have no state income tax, and SUTA rates tend to be lower than coastal states — though workers' compensation rates vary significantly by industry.
Regional Average at $60K
$65,440
Across 12 states
Lowest-Cost State
Virginia
$65,285 at $60K
Highest-Cost State
West Virginia
$65,698 at $60K
Southeast is 0.6% below the national average
National average at $60K salary: $65,802. The Southeast average is $65,440 — a difference of $362/year per employee.
Regional Average Employer Cost by Salary Level
What employers in the Southeast pay on average at each salary tier (includes all mandatory taxes)
| Salary | Southeast Avg | National Avg | Overhead Cost | Multiplier |
|---|---|---|---|---|
| $30,000 | $32,813 | $33,027 | +$2,813 | 1.09x |
| $40,000 | $43,691 | $43,964 | +$3,691 | 1.09x |
| $50,000 | $54,565 | $54,890 | +$4,565 | 1.09x |
| $60,000 benchmark | $65,440 | $65,802 | +$5,440 | 1.09x |
| $75,000 | $81,751 | $82,153 | +$6,751 | 1.09x |
| $100,000 | $108,937 | $109,392 | +$8,937 | 1.09x |
| $125,000 | $136,123 | $136,630 | +$11,123 | 1.09x |
| $150,000 | $163,310 | $163,867 | +$13,310 | 1.09x |
Southeast States Ranked by Employer Cost
Cheapest to most expensive at $60K salary
| Rank | State | $30K | $50K | $60K | $75K | $100K | $150K | Multiplier | |
|---|---|---|---|---|---|---|---|---|---|
| #1 | Virginia | $32,726 | $54,432 | $65,285 | $81,564 | $108,697 | $162,962 | 1.088x | Full breakdown → |
| #2 | Florida no income tax | $32,707 | $54,437 | $65,302 | $81,600 | $108,762 | $163,087 | 1.088x | Full breakdown → |
| #3 | Kentucky | $32,751 | $54,477 | $65,340 | $81,635 | $108,792 | $163,107 | 1.089x | Full breakdown → |
| #4 | Tennessee no income tax | $32,766 | $54,512 | $65,385 | $81,695 | $108,877 | $163,242 | 1.09x | Full breakdown → |
| #5 | Arkansas | $32,785 | $54,525 | $65,395 | $81,700 | $108,875 | $163,225 | 1.09x | Full breakdown → |
| #6 | South Carolina | $32,758 | $54,518 | $65,398 | $81,718 | $108,918 | $163,318 | 1.09x | Full breakdown → |
| #7 | Georgia | $32,827 | $54,573 | $65,446 | $81,756 | $108,938 | $163,303 | 1.091x | Full breakdown → |
| #8 | Alabama | $32,835 | $54,585 | $65,460 | $81,773 | $108,960 | $163,335 | 1.091x | Full breakdown → |
| #9 | Mississippi | $32,850 | $54,610 | $65,490 | $81,810 | $109,010 | $163,410 | 1.092x | Full breakdown → |
| #10 | Louisiana | $32,832 | $54,622 | $65,517 | $81,860 | $109,097 | $163,572 | 1.092x | Full breakdown → |
| #11 | North Carolina | $32,931 | $54,699 | $65,562 | $81,857 | $109,014 | $163,329 | 1.093x | Full breakdown → |
| #12 | West Virginia | $32,989 | $54,795 | $65,698 | $82,052 | $109,310 | $163,825 | 1.095x | Full breakdown → |
Key Findings: Southeast Employer Costs
- The regional average employer cost for a $60K employee is $65,440, 0.6% below the national average of $65,802.
- Virginia is the most cost-effective state for employers at $65,285 per $60K employee (1.088x salary).
- West Virginia has the highest employer costs at $65,698 per $60K employee (1.095x salary).
- Florida and Tennessee have no state income tax. SUTA wage bases are generally lower than the national average. Workers' comp rates vary widely across the region.
- The spread between lowest and highest cost states within the region is $413/year per $60K employee. At a 10-person team, that's a potential difference of $4,130/year.
Compare Other Regions
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