What is the FUTA tax rate for 2025?

FUTA is 6.0% on the first $7,000 of each employee's wages. Employers who pay their state unemployment tax in full and on time receive a credit of up to 5.4%, dropping the net FUTA rate to 0.6% — a maximum of $42 per employee per year. (Source: IRS Topic No. 759; Form 940.)

Is FUTA withheld from the employee's paycheck?

No. FUTA is an employer-only tax — it is never withheld from employees. It is reported and paid by the employer on IRS Form 940. (State unemployment tax rates are separate and vary by state and employer.) (Source: IRS Topic No. 759.)

Does this include state unemployment or income tax?

No. This covers federal FICA (Social Security + Medicare), the 0.9% Additional Medicare surtax, and federal FUTA only. State unemployment (SUTA) rates vary by state and employer, and federal/state income-tax withholding is a separate system not computed here. (Source: IRS Topic No. 751 & 759.)

Is my data sent anywhere when I use this calculator?

No. All calculations run entirely in your browser using JavaScript. No wage figures or other inputs are ever transmitted to any server.

FUTA Tax Calculator 2025 — 0.6% on the First $7,000

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FUTA Tax Calculator 2025 (2025)

FUTA (federal unemployment tax) is an employer-only tax of 6.0% on the first $7,000 of each employee’s wages. With the 5.4% state-unemployment credit, the net rate is just 0.6% — at most $42 per employee for 2025. It is never withheld from workers.

Enter annual wages below to see the employee share, the employer share, and the combined payroll tax — Social Security capped at the wage base, Medicare on every dollar, the 0.9% surtax for high earners, and employer FUTA. Everything runs in your browser — no wage data is transmitted.

Important: This covers federal FICA (Social Security + Medicare), the 0.9% Additional Medicare surtax, and federal FUTA only. It does not include state unemployment (SUTA), which varies by state and employer, or federal/state income-tax withholding, which is a separate system. Source: IRS Topic No. 751 & 560 & 759, Social Security Administration 2025 wage base, and IRS Form 8959/940 (2025); figures for the 2025 tax year, data as of 2024-10-10. Rates and the wage base change yearly; this is not tax or legal advice.