Florida Reemployment Tax Rates 2026: What Employers Pay

If you employ workers in Florida, you are required to pay Reemployment Tax — Florida's version of State Unemployment Insurance (SUI). Florida renamed its "Unemployment Compensation Tax" to "Reemployment Tax" in 2012 to reflect the program's focus on getting unemployed workers back into the workforce. Regardless of what you call it, the obligation is the same: every Florida employer must pay this tax on wages paid to employees, and your rate depends on your business's claims history. This guide breaks down the 2026 rates, wage base, costs, experience rating system, and practical strategies to keep your rate as low as possible.

Florida Reemployment Tax at a Glance

Here is a summary of the key numbers every Florida employer needs to know for 2026:

New Employer Rate: 2.7%

If you are a new Florida employer — meaning you have just registered your business and do not yet have an experience rating — your reemployment tax rate is 2.7%. This is the standard initial rate assigned to most new employers in Florida.

You will pay 2.7% on the first $7,000 of wages paid to each employee during the calendar year. That translates to a maximum cost of:

• $7,000 × 2.7% = $189.00 per employee per year

The 2.7% rate typically applies for your first year of liability (and sometimes longer, depending on when you begin paying wages and how quickly you accumulate enough history for an experience rating). Once you have been in the system long enough — generally 10 quarters of liability — the Florida Department of Revenue will calculate your individual experience-based rate.

Experienced Employer Rates: 0.10% to 5.4%

Once your business accumulates enough payroll history, the Florida Department of Revenue assigns you an experience-rated tax rate. For 2026, experienced employer rates range from a low of 0.10% to a high of 5.4%.

Here is how the rate spectrum breaks down in terms of annual cost per employee (on the $7,000 wage base):

The difference between the best and worst rates is dramatic. An employer with 25 employees at the minimum rate of 0.10% pays just $175 per year in total reemployment tax. The same employer at the maximum rate of 5.4% pays $9,450 per year — a difference of over $9,000. This is why managing your experience rating matters.

Wage Base: $7,000 per Employee

Florida's reemployment tax wage base is $7,000 per employee per calendar year. This means you only pay the tax on the first $7,000 of wages you pay to each employee during the year. Once an employee's cumulative wages for the year exceed $7,000, no additional reemployment tax is owed on that employee for the rest of the year.

Key points about the wage base:

• The $7,000 wage base matches the federal FUTA wage base, which simplifies tracking
• The wage base resets on January 1 of each year — every employee starts fresh
• For full-time employees earning typical wages, you will hit the $7,000 cap within the first quarter of the year, meaning your reemployment tax obligation for that employee is fully paid by March or April
• For part-time or seasonal employees who earn less than $7,000 in the year, you only pay the tax on actual wages paid

Total Cost: What You Actually Pay

Let's put the numbers in context with real-world examples for a Florida small business:

Remember: reemployment tax is just one component of your total employer payroll tax burden. You also owe FICA employer match (7.65% on all wages), FUTA (0.6% on the first $7,000), and potentially workers' compensation insurance premiums. For a complete picture, see our Florida Payroll Taxes 2026 overview.

How the Experience Rating System Works

Florida uses the reserve ratio method to calculate experienced employer rates. Here is how it works in plain English:

1. Your reserve account: The Florida Department of Revenue maintains a "reserve account" for your business. Every dollar of reemployment tax you pay gets credited to this account. Every dollar of unemployment benefits paid to your former employees gets charged against it.
2. Reserve ratio calculation: Your reserve ratio is your account balance (total contributions minus total benefit charges) divided by your average annual payroll over the most recent three years.
3. Rate table lookup: The Department of Revenue maps your reserve ratio to a specific tax rate using a rate schedule that is updated annually. A higher reserve ratio (meaning you have paid in more than has been charged out in claims) results in a lower tax rate.

In simplified terms:

• Few claims against your account = positive reserve = lower rate
• Many claims against your account = depleted reserve = higher rate

How Unemployment Claims Affect Your Rate

Every time a former employee files for and receives unemployment benefits (now called "reemployment assistance" in Florida), the benefits paid are charged to your reserve account. This is the single biggest factor that drives your rate up over time.

Here is what happens when a claim is filed:

1. A former employee files a claim for reemployment assistance with the Florida Department of Economic Opportunity (DEO)
2. The DEO determines whether the claimant is eligible for benefits
3. If approved, the benefits paid are charged to your employer reserve account at the Department of Revenue
4. These charges reduce your reserve balance, which lowers your reserve ratio
5. A lower reserve ratio means a higher tax rate when your next annual rate is calculated

The impact of a single claim depends on the amount of benefits paid relative to your overall payroll. For a small business with just a few employees, one extended unemployment claim can significantly increase your rate for the next several years. For a larger employer with a substantial payroll base, one claim may have minimal impact on the ratio.

FUTA Credit: How Florida Reemployment Tax Reduces Your Federal Tax

There is a direct connection between your Florida reemployment tax and your Federal Unemployment Tax (FUTA). The gross FUTA rate is 6.0% on the first $7,000 of wages per employee. However, employers who pay their state unemployment taxes (reemployment tax in Florida) on time and in full receive a credit of up to 5.4%, reducing the effective FUTA rate to just 0.6%.

This means:

• FUTA without state credit: $7,000 × 6.0% = $420 per employee
• FUTA with full 5.4% credit: $7,000 × 0.6% = $42 per employee
• Savings from the credit: $378 per employee per year

To earn the full 5.4% FUTA credit, you must:

1. Pay your Florida reemployment tax on time (by the quarterly filing deadline)
2. Be in a state that is not under a FUTA credit reduction (Florida is currently in good standing and not a credit reduction state as of 2026)

Strategies to Lower Your Reemployment Tax Rate

Your reemployment tax rate is not something you passively accept — there are concrete steps you can take to manage and reduce it over time:

1. Maintain Stable Employment

The most effective strategy is the simplest: keep your workforce stable. Every layoff or termination that results in an unemployment claim adds charges to your reserve account. Hire carefully, invest in employee retention, and avoid overstaffing during busy periods if you know you will need to lay people off later.

2. Respond to Every Claim Notice

When the DEO sends you a notice that a former employee has filed for reemployment assistance, you have 20 days to respond. Always respond, even if you think the claim is legitimate. If the employee quit voluntarily or was fired for misconduct, providing documentation can prevent the benefits from being charged to your account. Failing to respond is the most common mistake employers make — and it is entirely preventable.

3. Document All Terminations Thoroughly

If you terminate an employee for cause, thorough documentation is your strongest tool. The DEO needs to see evidence that the separation was due to misconduct or that the employee voluntarily quit. Without documentation, the DEO will typically rule in the claimant's favor, and the charges hit your account.

4. Contest Improper Claims

You have the right to protest any claim that you believe is improper. If an employee was terminated for documented misconduct, or if the employee voluntarily resigned, file your protest with supporting evidence within the response deadline. You can also appeal initial DEO determinations if they are not in your favor.

5. Consider the Timing of Separations

If a layoff is unavoidable, be aware that the timing can affect which reporting period the charges fall into and how they impact your rate calculation. While this should never be the primary factor in an employment decision, it is worth understanding in the context of planned workforce reductions.

6. Monitor Your Rate Notice Annually

Review your Form RT-20 rate notice carefully each year. If you believe the rate is incorrect — perhaps due to improperly charged claims or data errors — you can file a protest with the Department of Revenue. The deadline to protest is typically 20 days from the date of the rate notice.

7. Use Payroll Software That Tracks It

Modern payroll software like Gusto automatically applies your correct reemployment tax rate, tracks the $7,000 wage base per employee, and files your quarterly RT-6 returns on time. This eliminates the risk of manual errors and late filings that can cost you the FUTA credit.

Frequently Asked Questions

What is the difference between "reemployment tax" and "SUI"?

They refer to the same tax. Florida officially renamed its State Unemployment Insurance tax to "Reemployment Tax" in 2012 (effective January 1, 2012). You may see either term used in payroll software, IRS publications, and business references. On Florida-specific forms, it is always called "Reemployment Tax."

When are quarterly filings due?

Florida reemployment tax returns (Form RT-6) are due on the last day of the month following the end of each quarter:

• Q1 (Jan–Mar): April 30
• Q2 (Apr–Jun): July 31
• Q3 (Jul–Sep): October 31
• Q4 (Oct–Dec): January 31

Can I pay my reemployment tax online?

Yes. The Florida Department of Revenue requires electronic filing and payment for most employers. You can file and pay through the Department of Revenue's online portal at floridarevenue.com.

What happens if I do not pay?

Late payments are subject to a penalty of the greater of $10 or 10% of the amount due per month (up to 50% of the tax due), plus interest. Additionally, late payment can jeopardize your 5.4% FUTA credit, dramatically increasing your federal unemployment tax cost.

Does Florida have any additional payroll taxes beyond reemployment tax?

Florida has no state income tax, which means there is no state income tax withholding for employees. The reemployment tax is Florida's only state-level payroll tax. This makes Florida payroll simpler than many other states. However, you still owe all applicable federal payroll taxes (FICA, FUTA, and federal income tax withholding). For more details, see our Florida payroll tax overview.

I bought an existing Florida business. Do I inherit the previous owner's rate?

Possibly. If you acquire a business (or a portion of one) in Florida, the Department of Revenue may transfer part or all of the previous owner's unemployment experience to your account. This can be beneficial if the prior owner had a low rate, or costly if they had a high one. The transfer rules depend on the specific circumstances of the acquisition. Contact the Department of Revenue for guidance on your situation.

What is the minimum number of employees to owe reemployment tax?

In Florida, you become liable for reemployment tax if you pay $1,500 or more in wages in any calendar quarter, or if you employ one or more persons for some portion of a day during any 20 different calendar weeks in the current or preceding calendar year. Most employers with even a single employee will meet one of these thresholds quickly.