Texas Workers' Comp Calculator

Calculate workers' compensation insurance costs in Texas (TX). Estimate premiums by industry, payroll, and experience modification rate. Free Texas workers' comp calculator.

Estimate your workers' compensation insurance premium in Texas (TX). Enter your payroll and industry to get an instant quote estimate.

Calculate Your Premium

Annual Payroll ($)

Number of Employees

Industry / Class Code

Experience Mod Rate (EMR)

Your Estimated Workers' Comp Premium

Annual Premium

Monthly Cost

Cost Per Employee

Rate Per $100 Payroll

Premium Breakdown by Classification

Industry Comparison

Industry	Rate/$100	Est. Premium	Monthly

Workers' Compensation in Texas

Workers' compensation insurance is required for most employers in Texas. The state base rate index averages approximately $0.98 per $100 of payroll, though actual rates vary significantly by industry classification code and your company's claims history.

Key Texas Workers' Comp Facts

Average Rate: $0.98 per $100 of payroll
State Minimum Wage: $7.25/hour
State Fund: Competitive — private insurers available
Exemptions: Varies by business type and employee count
Filing Deadline: Must obtain coverage before first employee starts

How Texas Workers' Comp Premiums Are Calculated

Your workers' comp premium in Texas is calculated using this formula:

Premium = (Payroll ÷ 100) × Class Rate × Experience Mod Rate

Class Rate: Based on your industry's NCCI classification code and risk level
Experience Modification Rate (EMR): Your company's claims history vs. industry average (1.0 = average)
Payroll: Total annual employee wages subject to workers' comp

Highest-Risk Industries in Texas

Industries with the highest workers' comp rates in Texas include roofing ($8-12 per $100), trucking ($4-6 per $100), and construction ($3-5 per $100). Office and technology workers have the lowest rates, typically under $0.50 per $100 of payroll.

How to Lower Your Workers' Comp Costs

Safety programs: Implement workplace safety training to reduce claims
Return-to-work programs: Get injured employees back to light duty faster
Classify correctly: Ensure employees are in the right class codes
Shop around: Compare quotes from multiple private insurers
Pay-as-you-go: Use monthly premium payments based on actual payroll
Drug-free workplace: Many states offer premium discounts for drug-free programs

Frequently Asked Questions

Is workers' comp required in Texas? +

Yes, most employers in Texas are required to carry workers' compensation insurance. Some exceptions may apply for sole proprietors or very small businesses.

How much does workers' comp cost in Texas? +

The average rate in Texas is approximately $0.98 per $100 of payroll. For a business with $250,000 in annual payroll, that's roughly $2,450/year before experience modification. Actual costs vary by industry — office workers pay much less than construction or roofing.

What does workers' comp cover in Texas? +

Workers' compensation in Texas covers medical expenses for work-related injuries, lost wages (typically 2/3 of average weekly wage), rehabilitation costs, and death benefits for families of workers killed on the job.

What is an Experience Modification Rate (EMR)? +

Your EMR compares your company's claims history to the industry average. An EMR of 1.0 means you're average. Below 1.0 means fewer claims (lower premium), above 1.0 means more claims (higher premium). A new business typically starts at 1.0.

Can I get workers' comp for just myself as a sole proprietor? +

In Texas, sole proprietors and independent contractors can typically opt into workers' comp coverage voluntarily. This is sometimes called a "ghost policy" and may be required by general contractors before they'll hire you as a subcontractor.

What happens if I don't have workers' comp in Texas? +

Operating without required workers' compensation insurance in Texas can result in significant fines, criminal penalties, and personal liability for employee injuries. The state may also issue a stop-work order until coverage is obtained.

⚠️ Disclaimer: This tool provides estimates for informational and educational purposes only. Results may not reflect actual values and should be verified independently. CalcLeap makes no warranties regarding the accuracy or completeness of any calculations. Use at your own discretion.