How Much Does It Cost to Hire an Employee in Virginia? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Virginia.
Hiring a $60,000/year employee in Virginia costs employers approximately $65,285 total in 2026, including $5,285 in mandatory payroll taxes and workers' comp. That's a 1.09x multiplier on base salary.
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Total Cost at $60K Salary
$65,285
Cost multiplier: 1.09x
SUTA Rate (Mid)
1.56%
Wage base: $8,000
Workers' Comp Rate
0.88%
Has state income tax
Key Insight
For a $60,000 salary in Virginia, employers pay $5,285 in mandatory taxes — a 1.09x cost multiplier. Virginia's SUTA rate (1.56%) is below the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Virginia's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Virginia Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.17% – 6.5% |
| SUTA New Employer Rate (typical) | 1.56% — No change from 2025 |
| SUTA Wage Base | $8,000 |
| Workers' Compensation (avg) | 0.88% of payroll ↓ 0.02% from 2025 |
| State Income Tax | Yes |
2026 Rate Changes in Virginia
- — SUTA rate unchanged at 1.56% from 2025 to 2026.
- ↓ Workers' comp rate decreased from 0.9% (2025) to 0.88% (2026) — saving approximately $12 per $60K employee per year.
Rate changes reflect Virginia #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
Example Employer Costs in Virginia
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (VA) | $125 | $125 | $125 |
| Workers' Comp | $352 | $528 | $704 |
| Total Employer Taxes | $3,579 | $5,285 | $6,991 |
| Total Cost (salary + taxes) | $43,579 (1.09x) | $65,285 (1.09x) | $86,991 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Virginia Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Virginia Compares
Virginia's typical SUTA rate of 1.56% is below the national average of ~1.70%. With a relatively low wage base of $8,000, the maximum SUTA cost per employee is capped early.
Workers' compensation at 0.88% of payroll is below the national average of ~1.20%.
Virginia Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- SUTA rate 1.56% (wage base $8,000) — in line with national average
- Competitive workers' comp rate (0.88%) — below-average, favorable for labor-intensive businesses
Virginia's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Virginia Employment Profile
Virginia has a moderate employer tax profile with a $8,000 SUTA wage base and no paid family leave mandate, supported by a large federal government contracting economy.
federal government & defense contracting, cybersecurity & IT, financial services
Northern Virginia's massive federal contractor presence (Amazon AWS, Booz Allen, Leidos) drives IT wages significantly higher than state averages; employers outside NoVA often find recruitment difficult.
Cost at Different Salary Levels in Virginia
Total employer cost including all mandatory payroll taxes
Compare Virginia With
Employee Costs in Other States
Hiring Cost by Industry in Virginia
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Virginia
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $136,430 | 261,140 |
| Computer and Mathematical | $126,830 | 238,320 |
| Legal | $105,700 | 35,540 |
| Architecture and Engineering | $98,570 | 74,160 |
| Business and Financial Operations | $92,050 | 394,760 |
| Life, Physical, and Social Science | $82,850 | 44,310 |
| Healthcare Practitioners and Technical | $81,700 | 228,840 |
| Arts, Design, Entertainment, Sports, and Media | $60,820 | 58,950 |
States With Similar Hiring Costs
These states have SUTA rates close to Virginia's 1.56% — good for cost benchmarking.
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Simplify Payroll in Virginia
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