The Wagevane Index 2026
Two rankings from the same data that powers our calculators. Where does a $50,000 hire cost an employer the most in payroll taxes and insurance, and where does a $60,000 paycheck stretch the furthest?
Last verified November 2, 2026.
Key findings
- New Jersey is the most expensive state for employer payroll costs on a $50,000 hire ($6,451); Arkansas is the least ($4,272).
- Adjusted for local prices, a $60,000 salary goes furthest in South Dakota ($56,883 of buying power) and least far in Hawaii ($43,050).
- The gap between the most and least expensive states to hire in is $2,179 per employee per year.
Employer cost ranking
| Rank | State | Employer taxes & insurance on $50,000 | % of wages |
|---|---|---|---|
| 1 | New Jersey | $6,451 | 12.9% |
| 2 | Hawaii | $6,332 | 12.7% |
| 3 | Oregon | $5,712 | 11.4% |
| 4 | New York | $5,579 | 11.2% |
| 5 | Colorado | $5,545 | 11.1% |
| 6 | Nevada | $5,543 | 11.1% |
| 7 | Washington | $5,328 | 10.7% |
| 8 | Minnesota | $5,328 | 10.7% |
| 9 | California | $5,147 | 10.3% |
| 10 | Wyoming | $5,143 | 10.3% |
| 11 | Montana | $5,142 | 10.3% |
| 12 | Connecticut | $5,120 | 10.2% |
| 13 | Maine | $5,107 | 10.2% |
| 14 | Rhode Island | $5,035 | 10.1% |
| 15 | Illinois | $5,014 | 10% |
| 16 | Wisconsin | $5,004 | 10% |
| 17 | Vermont | $4,986 | 10% |
| 18 | Alaska | $4,947 | 9.9% |
| 19 | Massachusetts | $4,933 | 9.9% |
| 20 | Idaho | $4,917 | 9.8% |
| 21 | Oklahoma | $4,907 | 9.8% |
| 22 | District of Columbia | $4,868 | 9.7% |
| 23 | Pennsylvania | $4,819 | 9.6% |
| 24 | Utah | $4,782 | 9.6% |
| 25 | New Mexico | $4,740 | 9.5% |
| 26 | Missouri | $4,736 | 9.5% |
| 27 | Delaware | $4,726 | 9.5% |
| 28 | New Hampshire | $4,715 | 9.4% |
| 29 | South Dakota | $4,695 | 9.4% |
| 30 | North Carolina | $4,684 | 9.4% |
| 31 | Iowa | $4,676 | 9.4% |
| 32 | Georgia | $4,669 | 9.3% |
| 33 | Louisiana | $4,642 | 9.3% |
| 34 | Alabama | $4,638 | 9.3% |
| 35 | Kansas | $4,586 | 9.2% |
| 36 | North Dakota | $4,583 | 9.2% |
| 37 | Kentucky | $4,571 | 9.1% |
| 38 | Michigan | $4,560 | 9.1% |
| 39 | Florida | $4,556 | 9.1% |
| 40 | Nebraska | $4,540 | 9.1% |
| 41 | Maryland | $4,533 | 9.1% |
| 42 | South Carolina | $4,530 | 9.1% |
| 43 | Texas | $4,500 | 9% |
| 44 | Mississippi | $4,477 | 9% |
| 45 | Ohio | $4,464 | 8.9% |
| 46 | Indiana | $4,460 | 8.9% |
| 47 | Tennessee | $4,456 | 8.9% |
| 48 | Virginia | $4,432 | 8.9% |
| 49 | West Virginia | $4,394 | 8.8% |
| 50 | Arizona | $4,377 | 8.8% |
| 51 | Arkansas | $4,272 | 8.5% |
Paycheck buying power ranking
| Rank | State | Take-home on $60,000 | Price level | Buying power |
|---|---|---|---|---|
| 1 | South Dakota | $50,390 | 88.6 | $56,883 |
| 2 | North Dakota | $50,390 | 89.0 | $56,644 |
| 3 | Mississippi | $48,722 | 87.0 | $56,033 |
| 4 | Arkansas | $48,658 | 86.9 | $55,969 |
| 5 | Iowa | $48,762 | 87.8 | $55,561 |
| 6 | Louisiana | $48,976 | 88.2 | $55,524 |
| 7 | Oklahoma | $48,236 | 87.8 | $54,911 |
| 8 | Tennessee | $50,390 | 91.9 | $54,849 |
| 9 | Wyoming | $50,390 | 92.7 | $54,363 |
| 10 | West Virginia | $48,524 | 89.5 | $54,218 |
| 11 | Nebraska | $48,540 | 90.1 | $53,871 |
| 12 | Kentucky | $48,408 | 90.2 | $53,691 |
| 13 | Alabama | $47,655 | 88.8 | $53,652 |
| 14 | Missouri | $48,507 | 90.8 | $53,412 |
| 15 | Ohio | $49,522 | 92.8 | $53,380 |
| 16 | Kansas | $47,842 | 90.1 | $53,117 |
| 17 | New Mexico | $48,736 | 92.2 | $52,852 |
| 18 | South Carolina | $49,012 | 93.7 | $52,279 |
| 19 | Indiana | $48,650 | 93.3 | $52,127 |
| 20 | Texas | $50,390 | 97.1 | $51,918 |
| 21 | Wisconsin | $48,531 | 94.1 | $51,577 |
| 22 | North Carolina | $48,505 | 94.3 | $51,422 |
| 23 | Montana | $48,327 | 94.6 | $51,061 |
| 24 | Idaho | $48,318 | 95.5 | $50,598 |
| 25 | Nevada | $50,390 | 100.0 | $50,401 |
| 26 | Georgia | $48,145 | 96.3 | $49,998 |
| 27 | Michigan | $48,091 | 96.2 | $49,982 |
| 28 | Vermont | $48,748 | 98.0 | $49,764 |
| 29 | Pennsylvania | $48,464 | 97.6 | $49,670 |
| 30 | Arizona | $49,293 | 100.7 | $48,961 |
| 31 | Florida | $50,390 | 103.4 | $48,726 |
| 32 | Alaska | $49,848 | 102.4 | $48,699 |
| 33 | Utah | $48,143 | 98.9 | $48,696 |
| 34 | Maine | $47,222 | 97.0 | $48,657 |
| 35 | New Hampshire | $50,390 | 104.2 | $48,375 |
| 36 | Minnesota | $47,569 | 98.6 | $48,235 |
| 37 | Delaware | $47,497 | 99.8 | $47,588 |
| 38 | Illinois | $47,565 | 100.0 | $47,585 |
| 39 | Virginia | $47,754 | 101.1 | $47,233 |
| 40 | Rhode Island | $48,097 | 102.3 | $47,025 |
| 41 | Colorado | $48,194 | 103.1 | $46,767 |
| 42 | Connecticut | $48,315 | 103.6 | $46,632 |
| 43 | Washington | $49,558 | 107.0 | $46,310 |
| 44 | Maryland | $47,904 | 105.0 | $45,640 |
| 45 | Massachusetts | $47,334 | 105.8 | $44,757 |
| 46 | New Jersey | $47,989 | 108.8 | $44,106 |
| 47 | Oregon | $45,550 | 103.4 | $44,068 |
| 48 | New York | $47,457 | 107.9 | $43,973 |
| 49 | District of Columbia | $47,937 | 109.9 | $43,618 |
| 50 | California | $47,970 | 110.7 | $43,326 |
| 51 | Hawaii | $47,334 | 110.0 | $43,050 |
Methodology
Employer cost includes the employer share of Social Security and Medicare, FUTA net of the state credit (including any credit reduction), the state's new-employer SUTA rate on its wage base, employer-paid state leave programs and a workers' compensation benchmark per $100 of payroll. Take-home pay assumes a single filer with the standard deduction. Buying power divides take-home pay by the BEA regional price parity. Journalists may cite the index with a link to this page. Full details are in our methodology.