New Jersey SUI Rates 2026: What Employers Pay for Unemployment Insurance

State Unemployment Insurance (SUI) in New Jersey is a direct employer cost. Unlike income tax withholding, SUI contributions come entirely out of your business — employees do not contribute. Understanding how the rates work and what drives them up or down can have a real impact on your payroll budget.

SUI at a Glance

New Employer Rate: 2.8%

When you first register as an employer in New Jersey, you are assigned the new employer SUI rate of 2.8%. This rate applies until you have enough employment history for the state to calculate an experience-based rate — typically after 2–3 years of quarterly reporting.

Experienced Employer Rates: 0.40%–5.40%

After your initial period, New Jersey assigns an experience rate based on your claims history. The more unemployment claims charged to your account relative to the wages you’ve paid, the higher your rate. Rates range from 0.40%–5.40%.

The $42,300 Wage Base

SUI tax in New Jersey only applies to the first $42,300 of each employee’s wages per calendar year. Once an employee’s year-to-date wages exceed $42,300, no additional SUI tax is owed for that employee for the rest of the year.

Total Annual Cost Per Employee

At the new employer rate of 2.8%, your maximum SUI cost per employee is approximately $1,184.40 per year. Actual cost may be lower if the employee does not earn $42,300 annually.

💼 From the Payroll Desk

SUI is often the most variable employer-paid tax. A single unemployment claim can raise your rate significantly. Track your experience rate annually and budget accordingly.

How Experience Rating Works

New Jersey uses an experience rating system to determine each employer’s SUI rate. The state looks at the ratio of unemployment benefits charged to your account versus the taxable wages you’ve reported. A lower ratio of claims to wages results in a lower rate.

How to Register

Register for a New Jersey SUI account through the New Jersey Department of Labor and Workforce Development. You’ll receive an employer account number and your initial SUI rate assignment.

For step-by-step registration instructions, see our New Jersey New Employer Registration guide.

Filing and Payment

New Jersey SUI taxes are filed quarterly. You must submit a quarterly wage report listing all employees and their wages, along with payment for any SUI tax owed. Reports are typically due by the last day of the month following the end of each quarter (April 30, July 31, October 31, January 31).

How to Keep Your Rate Low

• Minimize layoffs: Every unemployment claim charged to your account increases your rate
• Respond to claims promptly: Contest fraudulent or ineligible claims
• Document terminations: “For cause” terminations with proper documentation may not be charged to your account
• Maintain stable employment: Consistent employment levels over time lead to lower experience ratings

Frequently Asked Questions

What is the New Jersey SUI rate for new employers in 2026?

New employers in New Jersey pay an SUI rate of 2.8% on the first $42,300 of each employee's wages.

What is the New Jersey SUI wage base for 2026?

The New Jersey SUI wage base for 2026 is $42,300. Once an employee's year-to-date wages exceed this amount, no additional SUI tax is owed for that employee.

How is the New Jersey SUI experience rate calculated?

New Jersey calculates experienced employer SUI rates based on your claims history — the ratio of unemployment benefits charged to your account versus the wages you've paid. Rates range from 0.40%–5.40%.

How do I register for New Jersey SUI?

Register through the New Jersey Department of Labor and Workforce Development at https://www.nj.gov/labor. You'll receive an employer account number and your assigned SUI rate.

Can I lower my New Jersey SUI rate?

Yes. Minimize layoffs, respond to all unemployment claims promptly, and maintain a stable workforce. Over time, fewer claims against your account will reduce your experience-rated SUI rate.