2023 State Tax Updates
Important Information for Upcoming 2023 State Tax Changes
Updated at December 12th, 2022
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. |
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