2026 Workers' Comp Cost Index — Rates by State & Industry
Workers' compensation rates vary dramatically by state — sometimes 3-4× between the highest and lowest. We compile annual data from NCCI, state-bureau filings, and the Oregon DCBS biennial study to give business owners a clear picture of what they should expect to pay. This 2026 edition reflects the most recent rate filings effective through 2026.
Highest-rate states (most expensive)
1. Alaska — avg $2.25 per $100 payroll. Driven by remote labor costs and high medical care.
2. New Jersey — avg $1.99. Strict regulation and high benefit levels.
3. Hawaii — avg $1.69. Independent rating system, geographic isolation.
4. Illinois — avg $1.66. Generous benefits + significant litigation.
5. Montana — avg $1.66. State Fund pricing pressure.
Tie-6. Louisiana ($1.59), New York ($1.41 statewide but high in NYC).
Lowest-rate states (cheapest)
1. Ohio — avg $0.74 per $100 payroll. Monopolistic state fund (BWC).
2. North Dakota — avg $0.78. Monopolistic (WSI).
3. Nevada — avg $0.81. Below-average across most class codes.
4. Arkansas — avg $0.83.
5. Virginia — avg $0.83.
6. North Carolina — avg $0.84.
By industry — average rate per $100 payroll
Office / clerical (8810): $0.10-$0.30 — lowest in the system
Retail (8017, 8008): $0.60-$3.50
Restaurants (9082): $1.50-$4.50
Janitorial (9014): $3.50-$9.50
Plumbing (5183): $4.00-$10.00
Electrical (5190): $3.50-$9.00
Carpentry / framing (5645): $8.00-$22.00
Trucking long-haul (7229): $7.00-$17.00
Tree service (0106): $12.00-$30.00
Roofing (5551): $18.00-$45.00 — highest in standard market
Rate trends 2024-2026
Average rates declined modestly nationally as claim frequency continues a multi-decade decline. Severity (cost per claim) is rising due to medical inflation, but more than offset by frequency drops.
The biggest exceptions are construction trades (seeing rate increases in CA, FL, NY) and home health (increasing nationally as medical costs rise).
Pay-as-you-go and digital quoting platforms (Pie, NEXT, Cerity, biBerk) have driven small-business pricing down 10-20% over five years through better risk selection.
How to use this data
The numbers above are state averages — your actual rate depends on your specific class code, payroll, claims history, and carrier. Use these as a sanity check on quotes you receive. If you're paying significantly above the state average for your class code, you're likely overpaying and should re-shop.
For an exact rate for your business, get a free quote — we'll show you actual filed rates from 12+ carriers in 60 seconds.
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