Short answer. EDD lists $7,000 per employee per calendar year for 2027. New employers pay 3.4%.
$7,000
taxable wages per employee for 2027
Unemployment tax at a glance
- 2027 wage base
- $7,000 (unchanged)
- 2026 wage base
- EDD: the UI and ETT taxable wage limit is $7,000 per employee per calendar year.
- New employer rate
- 3.4%. EDD assigns new employers 3.4% for two to three years, depending on section 982(b) of the Unemployment Insurance Code.
- Rate range
- 1.5%–6.2% (2027). Schedule F+ provides UI rates from 1.5% to 6.2% for both 2026 and 2027 (EDD). Employers under section 977(c) pay the highest rate plus 2%.
- Employee share
- None for unemployment insurance on the pages we read
- Agency
- California Employment Development Department (EDD)
- Registration
- We didn't find the registration link on the official pages we opened; start from the agency's employer page.
- Notes
- California is the state IRS's draft 2026 Schedule A (Form 940) assumes will have a FUTA credit reduction for 2026; the final list and rate come after November 10, 2026.
Other amounts on the same official pages
- State Disability Insurance (SDI), withheld from employees: 1.4% (2027). EDD: 1.4% for 2027 (1.3% in 2026), with no taxable wage limit since January 1, 2024. SDI is disability insurance, not unemployment insurance.
- Employment Training Tax (ETT): 0.1%. 0.1% on the same first $7,000 per employee, in 2026 and 2027 (EDD).
What it costs: an example
Three employees at the new employer rate of 3.4% on the $7,000 base, with wages paid evenly through 2027. FUTA is 0.6% of the first $7,000. The employee share, if any, isn't included.
| Employee | Annual wages | SUTA | Base reached | FUTA |
|---|---|---|---|---|
| Part time | $3,000.00 | $102.00 | Not reached | $18.00 |
| Around the base | $7,000.00 | $238.00 | Q4 | $42.00 |
| Above the base | $13,000.00 | $238.00 | Q3 | $42.00 |
Total for the three: $578.00 state plus $102.00 federal. Run your own staff in the SUTA and FUTA calculator set to California.
Setting up the account for 2027
- Register for an unemployment tax account with the California Employment Development Department (EDD) after your first payroll in the state.
- Set the 2027 wage base of $7,000 in payroll.
- Use 3.4% until your rate notice arrives; then enter the notice rate for the year.
- Confirm the quarterly report dates with the agency and put them on the calendar.
- Keep each rate notice and wage base change with your payroll records; FUTA's 5.4% credit depends on paying the state tax on time.
Not stated on the official pages we opened: quarterly due dates, the registration link.
Official sources
- California EDD: Contribution Rates, Withholding Schedules, and Meals and Lodging Values
- US Department of Labor: Significant Provisions of State Unemployment Insurance Laws, effective January 2026
- US Department of Labor: FUTA Credit Reductions (page updated September 11, 2026)
- IRS: FUTA credit reduction (page last reviewed September 8, 2026)
- IRS: draft Schedule A (Form 940) for 2026, created March 18, 2026 (draft, do not file)
General information, not tax or legal advice. Checked November 2026 against the official pages above. States set each employer's own rate every year, and a base or rate can change after we check. Use the rate on your state notice, and confirm with the state agency, your payroll provider or a tax professional before you file. MCC Solutions isn't affiliated with any government agency.
California unemployment tax questions
What is the California unemployment tax wage base for 2027?
$7,000 per employee, the same as 2026. EDD lists $7,000 per employee per calendar year for 2027.
What SUTA rate does a new employer pay in California?
3.4%. EDD assigns new employers 3.4% for two to three years, depending on section 982(b) of the Unemployment Insurance Code. On a full $7,000 base that's $238.00 per employee for the year.
Are there other California employer assessments on the same wages?
Employment Training Tax (ETT): 0.1%. 0.1% on the same first $7,000 per employee, in 2026 and 2027 (EDD).
What is the range of California unemployment tax rates for 2027?
1.5%–6.2% of taxable wages. Schedule F+ provides UI rates from 1.5% to 6.2% for both 2026 and 2027 (EDD). Employers under section 977(c) pay the highest rate plus 2%. An established employer's own rate is on the notice the state mails each year; at the top rate one employee on a full $7,000 base costs $434.00.
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