How Much Does Workers' Comp Pay? 2026 State-by-State Guide

Workers' comp typically pays 66.67% of your average weekly wage (AWW), tax-free, up to a state-set maximum. That's the short answer. But the real number you'll see on your check depends on where you live, what you earn, and the type of disability you've been classified under.

After researching every state's workers' comp rates for 2026, I can tell you the gap between states is wider than most injured workers realize. A warehouse worker earning $950 a week in Ohio takes home roughly $633 tax-free. The same worker in Iowa gets capped at $2,194 a week max. And someone earning that $950 in Mississippi? They'd be capped lower than you'd think.

If you're hurt and scared about how you'll pay bills while you heal, I get it. This guide walks through exactly how your weekly check is calculated, what the maximum looks like in your state, and when you'll actually see the money hit your account. No fluff, no legalese — just the numbers you need.

You can also plug your own wage into our free workers' comp calculator to see a personalized estimate in about 30 seconds.

The Basic Formula: How Workers' Comp Is Calculated

Here's the thing — nearly every state uses the same underlying math, with small tweaks. The core formula looks like this:

Average Weekly Wage (AWW) × Benefit Rate = Weekly Workers' Comp Payment

Your AWW is usually calculated by averaging your gross earnings over the 52 weeks before your injury. Some states use the highest-earning 13 weeks instead. Overtime, bonuses, and shift differentials typically count. Tips sometimes count, sometimes don't.

The benefit rate in most states is 66.67% (two-thirds) of AWW. A handful use different percentages:

• Michigan: 80% of after-tax wages
• Iowa: 80% of spendable earnings
• Rhode Island: 75% of spendable earnings
• Alaska: 80% of spendable weekly wage
• Connecticut: 75% of after-tax AWW
• Minnesota: 66.67% of gross AWW

Bottom line? If you earn $900 a week pre-injury in a 66.67% state, you'd receive $600 per week — unless that number exceeds your state's weekly maximum, in which case you get capped.

For the deeper breakdown on math and adjustments, check out our guide on how workers' comp is calculated.

Maximum Weekly Benefits by State (All 50 States 2026)

Every state sets a maximum weekly benefit. If two-thirds of your AWW exceeds this cap, you only get the cap. Some states also set a minimum floor so low-wage workers don't get almost nothing.

Look — these numbers change every July or January depending on the state, because they're tied to the State Average Weekly Wage (SAWW). The table below reflects 2026 rates effective as of April:

| State | Max Weekly Benefit (2026) | Benefit Rate | |-------|--------------------------:|:-------------| | Alabama | $1,103 | 66.67% | | Alaska | $1,499 | 80% spendable | | Arizona | $1,094 | 66.67% | | Arkansas | $819 | 66.67% | | California | $1,680 | 66.67% | | Colorado | $1,394 | 66.67% | | Connecticut | $1,659 | 75% after-tax | | Delaware | $891 | 66.67% | | Florida | $1,260 | 66.67% | | Georgia | $800 | 66.67% | | Hawaii | $1,242 | 66.67% | | Idaho | $1,102 | 67% | | Illinois | $1,903 | 66.67% | | Indiana | $1,205 | 66.67% | | Iowa | $2,194 | 80% spendable | | Kansas | $804 | 66.67% | | Kentucky | $1,171 | 66.67% | | Louisiana | $884 | 66.67% | | Maine | $1,258 | 66.67% | | Maryland | $1,403 | 66.67% | | Massachusetts | $1,829 | 60% of AWW | | Michigan | $1,220 | 80% after-tax | | Minnesota | $1,402 | 66.67% | | Mississippi | $606 | 66.67% | | Missouri | $1,148 | 66.67% | | Montana | $1,024 | 66.67% | | Nebraska | $1,029 | 66.67% | | Nevada | $1,212 | 66.67% | | New Hampshire | $1,847 | 60% of AWW | | New Jersey | $1,295 | 70% of AWW | | New Mexico | $1,073 | 66.67% | | New York | $1,318 | 66.67% | | North Carolina | $1,353 | 66.67% | | North Dakota | $1,197 | 66.67% | | Ohio | $1,214 | 66.67% | | Oklahoma | $993 | 70% of AWW | | Oregon | $1,807 | 66.67% | | Pennsylvania | $1,428 | 66.67% | | Rhode Island | $1,556 | 75% spendable | | South Carolina | $1,134 | 66.67% | | South Dakota | $1,091 | 66.67% | | Tennessee | $1,150 | 66.67% | | Texas | $1,203 | 70% of AWW | | Utah | $1,126 | 66.67% | | Vermont | $1,653 | 66.67% | | Virginia | $1,410 | 66.67% | | Washington | $2,071 | 60–75% (family size) | | West Virginia | $1,135 | 66.67% | | Wisconsin | $1,209 | 66.67% | | Wyoming | $1,168 | 66.67% | | District of Columbia | $1,831 | 66.67% |

Notice how wide the spread is? Iowa tops $2,000 per week. Mississippi caps at $606. Same injury, very different outcomes depending on your zip code.

Calculation Examples at Different Wage Levels

Abstract percentages aren't helpful when you're worried about rent. Let's run through four real scenarios with the actual dollar amounts you'd see.

Example 1: Warehouse Worker in Ohio at $950/week

Maria works at a distribution center in Columbus. She earns $950 per week in gross wages. She hurts her back lifting a pallet and her doctor pulls her out of work for 10 weeks.

Calculation:

• AWW: $950
• Benefit rate: 66.67%
• Weekly payment: $950 × 0.6667 = $633.37 per week
• Ohio's 2026 max: $1,214 (so no cap applies)
• Total over 10 weeks: $6,333.70 tax-free

Compare that to what $950/week looks like after federal tax, state tax, and FICA — probably around $735 take-home. So her workers' comp check is about 86% of her usual take-home. Not bad, but not whole.

Example 2: Nurse in California at $1,600/week

David is an ICU nurse in San Diego. He earns $1,600 per week between base pay and shift differentials. He contracts a serious infection through a needle stick and needs 16 weeks off.

Calculation:

• AWW: $1,600
• Benefit rate: 66.67%
• Unadjusted weekly payment: $1,600 × 0.6667 = $1,066.67
• California's 2026 max: $1,680 (no cap applies)
• Weekly payment: $1,066.72 per week
• Total over 16 weeks: $17,067.52 tax-free

California has one of the highest maxes in the country, so high earners there actually get the full two-thirds. Want to run your own California numbers? Try our California workers' comp calculator.

Example 3: Construction Worker in Texas at $1,200/week

James does commercial roofing in Austin, earning $1,200 per week. He falls off a ladder and breaks his femur. He's out for 22 weeks.

Calculation:

• AWW: $1,200
• Texas benefit rate: 70%
• Weekly payment: $1,200 × 0.70 = $840 per week
• Texas 2026 max: $1,203 (no cap applies)
• Total over 22 weeks: $18,480 tax-free

Texas uses 70% instead of the standard 66.67%, so Texans generally come out slightly ahead on the percentage — though the state max is lower than many others. For your own Texas estimate, use the Texas workers' comp calculator.

Example 4: Office Manager in New York at $1,400/week

Priya manages a law office in Manhattan, earning $1,400 per week. She develops severe carpal tunnel that requires surgery and 8 weeks of recovery.

Calculation:

• AWW: $1,400
• Benefit rate: 66.67%
• Unadjusted weekly payment: $1,400 × 0.6667 = $933.38
• New York 2026 max: $1,318 (no cap applies)
• Weekly payment: $933.38 per week
• Total over 8 weeks: $7,467.04 tax-free

Her take-home on $1,400 gross is probably around $1,015 after taxes, so she's replacing about 92% of her usual take-home. That's the magic of tax-free benefits.

TTD vs TPD vs PPD: Different Benefits, Different Amounts

Not all workers' comp payments are the same. Depending on how your doctor classifies your disability, you'll get one of four benefit types — and the dollar amounts vary significantly.

Temporary Total Disability (TTD) — You can't work at all while you recover. This is the classic two-thirds-of-AWW payment we've been calculating. Most injured workers start here.

Temporary Partial Disability (TPD) — You can work, but only in a reduced capacity earning less than before. Workers' comp pays roughly two-thirds of the difference between your old and new wages.

Permanent Partial Disability (PPD) — Your injury has stabilized but left you with a permanent impairment. Payment is calculated using an impairment rating (a percentage) multiplied by the number of weeks assigned to the body part in your state's schedule.

Permanent Total Disability (PTD) — You can't return to any gainful employment ever again. In most states, this means lifetime benefits at the TTD rate.

Here's a quick example of PPD math: if you lose 20% use of your arm in Pennsylvania, and your state schedules 410 weeks for an arm, you'd receive 20% × 410 = 82 weeks of benefits at your compensation rate. At, say, $750/week, that's $61,500 total in PPD benefits.

PPD benefits are often where settlements come into play. You can estimate your settlement value with our workers' comp settlement calculator.

Are Workers' Comp Payments Tax-Free?

Yes — and this is one of the most misunderstood facts in the whole system.

Under 26 U.S.C. § 104(a)(1), workers' comp benefits are completely exempt from federal income tax. They're also exempt from state income tax in all 50 states. You won't receive a W-2 or 1099 for them at year-end. They don't count as "income" for IRS purposes.

What does this mean practically? If you're earning $900/week gross in wages, you probably take home $700 after taxes. Your 66.67% workers' comp benefit of $600 is only $100 less than your usual take-home — not $300 less. That's a meaningful difference when you're trying to figure out if you can pay the mortgage.

There's one small exception worth knowing: if you're receiving Social Security Disability (SSDI) at the same time as workers' comp, a portion of your workers' comp may become taxable due to the "SSDI offset." This only affects a small percentage of claimants. For most people, every dollar is tax-free.

When Does Workers' Comp Start Paying?

Workers' comp doesn't start the moment you file. Every state imposes a waiting period — usually 3 to 7 days — before benefits kick in. Here's how it works in practice:

• Days 1–7 (or 1–3): Not covered. You use sick time, PTO, or go unpaid.
• After the waiting period: Benefits begin retroactively from day 1 if you're out long enough.
• "Long enough" is the retroactive threshold — usually 14 or 21 days.

Let's say you live in a state with a 7-day waiting period and a 14-day retroactive threshold. If you're out for 10 days, you get paid for days 8–10 only. If you're out for 15 days, you get paid for all 15 days, retroactive to day 1.

Waiting periods by category:

• 3-day states: California, New York, New Jersey, Kentucky, Pennsylvania, Ohio, Michigan
• 4-day states: Georgia, Indiana, North Carolina
• 5-day states: Arizona, New Mexico, Oklahoma
• 7-day states: Florida, Illinois, Texas, Washington, Tennessee
• Longer: A handful of states have 14-day waiting periods

Your first check typically arrives 14 to 21 days after your injury is reported, assuming the claim isn't disputed. Disputed claims can take months. If yours is being delayed past 21 days, something's off and you should ask the adjuster directly why.

How Payments Are Made

Most states require weekly or bi-weekly payments. A few allow monthly. Once your claim is approved, you'll typically get paid by one of four methods:

1. Paper check mailed to your home
2. Direct deposit into your bank account
3. Prepaid debit card (Comdata, Wisely, etc.)
4. Employer-continued payroll (some states allow this as a pass-through)
5. Lump-sum advance against future benefits (rare, court-approved only)
6. Structured settlement (for PPD/PTD cases at the end)
7. Combination (weekly checks + lump sum for specific losses)

I'd recommend setting up direct deposit as soon as you're eligible. Paper checks get lost, prepaid cards often charge fees, and payroll pass-throughs sometimes get taxes withheld in error (remember — this money is tax-free).

Your best bet? Ask your adjuster on the first call what payment methods they offer and pick direct deposit. Get the ACH info in writing.

FAQ

1. How much does workers' comp pay per week? Most states pay 66.67% (two-thirds) of your average weekly wage, tax-free, up to a state maximum. So if you earn $900/week, you'd typically receive $600/week in benefits. Max benefits range from $606 (Mississippi) to over $2,100 (Iowa, Washington).

2. Is workers' comp less than my regular paycheck? Usually yes, on gross terms — but not by as much as you'd think. Workers' comp is tax-free, so the real comparison is to your take-home pay. Two-thirds of gross often replaces 85–95% of take-home, depending on your tax bracket.

3. Can I get more than the state maximum? No. If two-thirds of your AWW exceeds the cap, you get the cap. High earners often feel this. In Georgia ($800 max), anyone earning over $1,200/week hits the cap.

4. Do bonuses and overtime count toward my AWW? In most states, yes — overtime, shift differentials, and regular bonuses are included. One-time bonuses and tips are trickier and vary by state. Always give your adjuster full wage records including pay stubs showing overtime.

5. When will I get my first workers' comp check? Usually 14 to 21 days after your injury is reported, assuming no dispute. If you're past day 21 with no check, contact your adjuster immediately and ask for a status update in writing.

6. How long can I receive workers' comp? Depends on the benefit type and state. TTD is typically capped at 104–500 weeks depending on state. PTD can be lifetime. PPD is based on impairment rating. I cover this in our guide on how long workers' comp lasts.

7. Do I pay taxes on workers' comp? No — not federal, state, or local income tax. The only exception is a partial offset if you also receive SSDI. You won't get a W-2 or 1099 for workers' comp benefits.

8. What if my employer pays me my regular wages while I'm out? Some employers continue your full salary and collect the workers' comp benefit themselves (called "salary continuation" or "wage continuation"). This is legal in most states and actually leaves you better off financially since your full wages continue. Just confirm in writing that your PTO isn't being burned.

Sources

• U.S. Department of Labor — Office of Workers' Compensation Programs
• IRS Publication 525 — Taxable and Nontaxable Income
• 26 U.S.C. § 104(a)(1) — Compensation for injuries or sickness
• National Academy of Social Insurance — Workers' Compensation Benefits
• California Department of Industrial Relations — DWC
• New York State Workers' Compensation Board
• Texas Department of Insurance — Division of Workers' Compensation
• Ohio Bureau of Workers' Compensation

Have specific numbers you want to run? Plug your wage, state, and injury details into our free workers' comp calculator and get a personalized benefit estimate in under a minute. If you're thinking about settling your claim, the settlement calculator will give you a ballpark based on your impairment rating and state schedule.