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2023 State Tax Updates

Important Information for Upcoming 2023 State Tax Changes

Written by Jenn Berlin

Updated at July 5th, 2023

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The following State Tax Changes will take effect on January, 1 2023.  For information regarding Federal Tax Updates for 2023 see: Annual Limits and Bank Holidays.

Arizona
SUI - Increased the SUI taxable wage base from $7,000.00 to $8,000.00.  For more information visit: AZ DES.
WH - Withholding Rates Revised.  Note: Employees need to fill out a new A-4 and select a new tax rate. If the employee does not supply an updated A-4 by January 31, 2023, the employer must select 2% as the default rate on behalf of the employee.  For more information visit: AZ DOR.
 
California
SDI - Increased the SDI wage base from $145,600.00 to $153,164.00 & Decreased the SDI tax rate from 1.1% to .9%.  For more information visit: CA EDD.
WH - Increased the low-income exemption limits, Increased the standard deduction amounts, Increased the tax credit amount from $141.90 to $154.00 per credit & revised the withholding tables. For more information visit: CA EDD.
 
Colorado
NEW PFL - Added employee default tax rate of .45% and employer default tax rate of .45% & Increased the Paid Family and Medical Leave employer and employee wage base from $147,000.00 to $160,200.00. For more information visit: Colorado Family Leave.
SUI - Increased the SUI taxable wage base from $17,000.00 to $20,400.00.  For more information visit: CO DLE.
 
Connecticut
PFL - Increased the Paid Family and Medical Leave wage base from $147,000.00 to $160,200.00.  For more information visit: CT Paid Leave.
 
Iowa
SUI - Increased the SUI taxable wage base from  $34,800 to $36,100.  For more information visit: Iowa Workforce Development.
 
Kentucky
WH - Increased the standard deduction from $2,770.00 to $2,980.00 & decreased the withholding tax rate from 5% to 4.5%.  For more information visit: Kentucky DOR.
 
Massachusetts
PFL - Decreased the Paid Family and Medical Leave employee tax rate from 0.344% to 0.318%.  Decreased the Paid Family and Medical Leave employer tax rate from 0.336% to 0.312%.  Increased the Paid Family and Medical Leave wage base from $147,000.00 to $160,200.00.  For more information visit: MA PFML.
 
Minnesota
SUI - Decreased the SUI taxable wage base from $11,000.00 to $10,500.00.  For more information visit: MN DOL.
 
Missouri
SUI - Increased the SUI taxable wage base from $38,000.00 to $40,000.00.  For more information visit: MO DOL.
 
Montana
SUI - Increased the SUI taxable wage base from $38,100.00 to $40,500.00 for the following: SUI, SUI Administrative Fund Tax.  For more information visit: MT DLI.
WH - Increased the withholding allowance from $1,900.00 to $2,070.00 & revised withholding tables. For more information visit: MT DOR.
 
Nebraska
WH - Increased the withholding allowance from $2,080.00 to $2,140.00 & revised the withholding tables.  For more information visit: NE DOR.
 
Nevada
SUI - Increased the SUI taxable wage base from $36,600.00 to 40,100.00 for the following: SUI, SUI Career Enhancement Program.  For more information visit: NV UI.
 
New Jersey
SUI - Increased the employee and employer SUI wage base from $39,800.00 to $41,100.00.  For more information visit: NJ DOL.
SDI - Increased the employer SDI wage base from $39,800.00 to $41,100.00, increased the employee SDI wage base from $151,900.00 to $156,800.00 & eliminated the employee SDI tax rate of .14%.  For more information visit: NJ DOL.
PFL - Increased the Family Leave Insurance wage base from $151,900.00 to $156,800.00 & decreased the Family Leave Insurance tax rate from .14% to .06%.  For more information visit: NJ DOL.
 
New Mexico
SUI - Increased the SUI wage base from $28,700.00 to $30,100.00.  For more information visit: NM DWS.
 
New York
PFL - Decreased tax rate from .511% to .455% & decreased annual maximum tax from $423.71 to $399.43.  For more information visit: Paid Family Leave.
SUI - Increased the SUI taxable wage base from $12,000.00 to $12,300.00 for the following: SUI, SUI Re-Employment Service Fund.  For more information visit: NY DOL.
 
Oklahoma
SUI - Increased the SUI taxable wage base from $24,800.00 to $25,700.00.  The 5% allocation of state unemployment tax dollars towards the OESC Technology Fund has been discontinued; all OK UI tax dollars can now be claimed on IRS Form 940.  For more information visit: OK ESC.
 
Oregon
NEW PFL - Added Paid Leave Oregon with an employee default tax rate of .6% and employer default tax rate of .4%. The wage base limit is currently $132,900.00 and is set by the department and will be announced by November 15th each year.   For more information visit: Paid Leave Oregon.
Transit Tax - Increased the LTD transit tax rate from .77% to .78%.  For additional information visit: OR LTD.  Increased the Tri-Met transit tax rate from .7937% to .8037%.  
 
Vermont
SUI - Decreased the SUI taxable wage base from $15,500 to $13,500.  For more information visit: VT DOL.
 
Washington
PFL - Increased the Paid Family and Medical Leave wage base from $147,000.00 to $160,200.00 & Increased the Paid Family and Medical Leave tax rate from .6% to .8%.  Employees will pay 72.76% and employers will pay 27.24%.  For more information visit: WA ESD.
SUI - Increased the SUI taxable wage base from $62,500.00 to $67,600.00 for the following: SUI, SUI Employment Administrative Fund.  For more information visit: WA ESD.
 
Wyoming
SUI - Increased the SUI taxable wage base from $27,700.00 to $29,100.00 for the following: SUI, SUI Employment Support Fund Factor.  For more information visit: WY DWS.

Employdrive does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only.   You should consult your own tax, legal and accounting advisors before engaging in any transaction. 

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