The same job costs
5× more to insure,
state to state.
Run identical payroll in Hawaii and North Dakota and the workers’ compensation bill isn’t close: the priciest state charges five times what the cheapest does for the same mix of work. Here is every state, ranked, from one government dataset.
Across all 50 states and DC, the workers’ compensation premium index rate runs from $0.50 to $2.52 per $100 of payroll — a fivefold spread for the same standardized mix of jobs. The national median is $1.09, the lowest since the study began in 1986. Where your business operates is one of the largest factors in what you pay.
- Hawaii is the most expensive at $2.52 per $100 of payroll — 231% of the national median — followed by New Jersey, New York, and California.
- North Dakota is the cheapest at $0.50, with Arkansas and West Virginia close behind at the low end.
- The middle is a traffic jam. Rates across the central 26 states differ by an average of just two cents per rank, so a small rate change can move a state several places.
- Five states run monopoly funds. In North Dakota, Ohio, Washington, West Virginia, and Wyoming, employers must buy coverage from the state, not a private insurer.
- Texas is the outlier twice over. It ranks 40th at $0.78 — well below median — and it’s the only state where private employers can legally skip workers’ comp entirely.
Every state, one table
The workers’ compensation premium index rate for all 50 states and the District of Columbia, in dollars per $100 of covered payroll, as ranked by the Oregon DCBS 2024 study. Tap a column to sort. The toggle switches between the dollar index rate and each state’s rate as a percentage of the national median — a fairer way to read distance from the middle.
| Rank ▴ | State | Index Rate | % of Median | 2022 Rank |
|---|
Where it costs most
— and least
10 most expensive states
10 least expensive states
Why the same work
costs so differently
The gap between Hawaii and North Dakota isn’t about how dangerous the work is — the study deliberately holds the mix of jobs constant across every state. It’s about the rules each state writes around that work: how generous its injury benefits are, how much medical care costs, how litigation-prone its claims process is, and how its insurance market is structured.
That’s the point of an index rate. Rather than compare a logging state to an office-heavy state and call one “cheaper,” the Oregon study applies the same standardized basket of 50-plus job classifications to every jurisdiction. What’s left when you strip out the industry mix is the price of the state’s own system — and that price varies fivefold.
The middle of the pack barely moves
The eye-catching numbers are at the edges, but most states cluster tightly. Across the central 26 jurisdictions, consecutive ranks differ by an average of two cents per $100 of payroll. That compression is why rankings can be misleading on their own: a state can drop several places between studies without its actual rate changing much at all. Reading a state’s rate as a percentage of the median — the second view in the table above — tells you more than its rank does.
Monopoly states play by different rules
In four states — North Dakota, Ohio, Washington, and Wyoming — employers can’t shop for workers’ comp at all; coverage comes only from a state-run fund. West Virginia operated the same way until 2006 and still shows monopoly-era characteristics. It’s notable that two of the cheapest states in the country, North Dakota and West Virginia, are monopoly funds — a reminder that “competitive market” and “low price” don’t always travel together in this line of coverage.
Texas is the exception that proves the rule
Texas sits at 40th, with a $0.78 index rate that’s well under the national median. But its bigger distinction isn’t price — it’s that Texas is the only state that doesn’t require most private employers to carry workers’ comp at all. That makes the coverage a business decision rather than a legal mandate, which changes the calculation for every Texas employer weighing whether, and how much, to buy. A low index rate and an opt-out system pull in different directions, and the right answer depends on the specific payroll and risk in front of you.
None of these figures is the exact rate a given employer pays. Experience modifiers, class codes, deductible plans, and insurer competition all move the final premium. What the index rate captures is the one thing an individual quote hides: how expensive a state’s system is before any of that personalization begins.
Methodology & sources
- Primary — full report — Oregon DCBS, Workers’ Compensation Premium Rate Ranking, Calendar Year 2024 (PDF, Table 1). oregon.gov — 2024 Premium Rate Ranking (PDF)
- Primary — landing page — Oregon DCBS, 2024 workers’ compensation premium index rates. oregon.gov/dcbs — premium index rates
- Method detail — Oregon DCBS, Workers’ compensation comparison across the states. oregon.gov/dcbs — comparison across states
- Corroborating — National Academy of Social Insurance, Employers’ Costs for Workers’ Compensation Per $100 of Covered Wages by State. nasi.org
