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.
| Base class code rate | — |
| State multiplier | — |
| Adjusted rate / $100 | — |
| Payroll units ($100s) | — |
| Manual premium | — |
| Experience modifier (EMR) | — |
| Premium discount | — |
| Annual premium | — |
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.
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.