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Cost of hiring an employee in Tennessee

A full-time hire at $18/hour costs about $40,835 a year before benefits — $20.42 per hour actually worked with 10 days off.

Last updated October 28, 2026 · 2026 rates

SUTA new-employer rate
2.7%
verified
SUTA wage base
$7,000
verified
Minimum wage
$7.25
verified
Workers' comp (typical)
$0.80/$100
rank 39/51 (1 = priciest)

Minimum wage: No state minimum above federal; federal $7.25 applies.

1About the hire

Adjust tax rates (from your notices or quotes)

2What this employee costs you

Frequently asked questions

How much does it cost to hire an employee in Tennessee?

A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $40,835 a year before benefits: employer payroll tax $2,864, FUTA $42, Tennessee unemployment $189 and typical workers' comp $300. That's $20.42 per hour worked.

What is the Tennessee SUTA rate for new employers in 2026?

2.7% on the first $7,000 of each employee's wages (U.S. DOL, January 2026).

What is the Tennessee minimum wage in 2026?

$7.25 per hour (federal minimum; no higher state rate). No state minimum above federal; federal $7.25 applies.

How much is workers' comp in Tennessee?

The 2024 Oregon premium-rate study puts Tennessee's all-industry index rate at $0.80 per $100 of payroll (rank 39 of 51; national median $1.09). Your real rate depends on job class and claims history.

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