Workers Comp 2027 Rate by State Calculator

Workers compensation premium = (Payroll ÷ $100) × Class Code Rate × Experience Mod. This 2027 calculator uses NCCI benchmark rates by state for common class codes — clerical, retail, restaurant, construction, trucking.

How Workers Comp Premium Is Calculated

Three numbers drive every workers comp premium: (1) Class code rate — NCCI assigns each occupation a rate per $100 of payroll. Clerical (8810) runs $0.20-$0.45; roofing (5645) runs $7-$12. (2) Payroll — total wages by class code, divided by $100. (3) Experience Modifier (EMR) — your business's own loss history vs industry average. EMR starts at 1.00; safe employers earn 0.70-0.90, claims push EMR to 1.20-2.00.

State Rate Differences 2027

Workers comp rates vary 4-5x by state. Cheapest: Texas, North Dakota, Indiana, Virginia. Most expensive: California, New York, Illinois, Washington. State differences come from medical fee schedules, attorney involvement rates, indemnity benefit levels, and historical loss costs. Monopolistic states (Ohio, Washington, Wyoming, North Dakota) sell coverage only through state funds — no private market. California's pure premium rate of $1.84/$100 is highest in the nation; North Dakota's $0.66 is lowest (NCCI 2025).

How To Lower Your Workers Comp Premium

Reduce class codes via accurate payroll allocation (don't put clerical staff in a higher class). Run a written safety program — many carriers credit 5-10%. Use return-to-work programs to close claims faster (huge EMR impact). Audit your annual payroll filing — overstated payroll = overstated premium. Consider a deductible plan ($500-$10K) for 5-15% credit. For high-payroll firms, look at a Captive or Self-Insured Group.

How Your Experience Mod Is Actually Set (And Why Small Claims Hurt Most)

The experience modifier in the formula above is not set by your insurance carrier — it is published by a rating bureau (NCCI in most states, an independent bureau in California, New York, Pennsylvania and a few others), and every carrier quoting you must use the same number. Three consequences worth planning around. You may not have a mod at all: experience rating only applies once your premium clears an eligibility threshold that each state sets, so the smallest employers are rated on class code and payroll alone and cannot earn a credit no matter how safe they are. A claim follows you for three years, starting late: the mod is built from a three-year window that deliberately excludes your most recent policy year, so an injury today does not move your premium until roughly a year from now, then sits in the calculation for three more. Frequency is punished harder than severity: the formula splits every claim at a primary loss threshold, counts the amount below it in full, and heavily discounts the excess above it. Five $6,000 claims therefore raise your mod far more than one $30,000 claim, which is why closing small medical-only claims quickly, and preventing the repeat strains and slips that generate them, moves your premium more than any negotiation. Ask your broker for your mod worksheet — it lists every claim that is driving the number. Methodology and state applicability: NCCI.

Audit Trip-Ups That Cost Businesses Thousands

Workers comp premium is initially estimated and then audited annually. Three audit mistakes cost businesses thousands: (1) Misclassified employees — putting clerical staff in a higher class (e.g., 8810 vs 5403) saves money up front but the audit will reclassify and bill back-premium. (2) Including overtime at time-and-a-half — most states only count OT at straight time for premium calculation. (3) Counting 1099 subcontractors as employees if you can't produce their certificates of insurance — keep COIs on file for every sub. Audit prep saves more than negotiation.

Last updated May 2026. Sources cited in tool output.