State SUI Directory

Alabama

AL

SUI / SUTA Rate Data — 2026

Source: Alabama Department of Labor

Taxable Wage Base
$8,000
Maximum wages subject to SUI tax per employee per year
SUI Rate Range
0.2% – 5.4%
Experience-rated range for eligible employers
New Employer Rate
2.7%
Standard rate applied before experience rating applies
Voluntary Contributions
Not available
State does not allow voluntary contributions
PFML Program
None
No state-mandated PFML program
State Agency
Alabama Department of Labor
Agency responsible for administering unemployment insurance
Official Agency Website
Alabama Department of Labor
Visit Agency →

About Alabama SUI Rates

Alabama employers pay State Unemployment Insurance (SUI/SUTA) taxes on the first $8,000of each employee's wages per year. New employers start at a rate of 2.7% before experience rating applies. Once rated, Alabama SUI rates range from 0.2% to 5.4%.

SUI rates are set annually by Alabama Department of Laborbased on each employer's experience rating — the ratio of benefits charged to the employer's account relative to taxable wages paid. Errors in SUI rate notices are common; Kreto verifies your assigned rate against payroll data and flags discrepancies before protest deadlines pass.

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