TWC Lowers Taxes for Texas Employers in 2023

Texas Workforce Commission • January 11, 2023

The Texas Workforce Commission (TWC) announced the average unemployment insurance (UI) tax rate for all employers will be 1.16% for calendar year (CY) 2023. Last year, the average tax rate was 1.35%.

The minimum tax rate is paid by more than 370,000 employers, which represents 61.5% of experience-rated employers. The minimum UI tax rate paid by Texas employers in CY 2023 will be 0.23%, which is 0.08 percentage points lower than 0.31% in CY 2022. These employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own.

An experience rating is determined by the amount of an employer’s taxable wages and the amount of UI benefits that have been paid to former employees and charged to the employer’s account for the last three years. An employer paying the standard minimum tax will pay $20.70 per employee in CY 2023 on the first $9,000 in wages per employee compared with $27.90 per employee in CY 2022. The average tax rate for experience-rated employers is 0.89%. The maximum UI tax rate, paid by 4.2% of Texas employers, will be 6.23%, down 0.08 percentage points from CY 2022 at 6.31%.

TWC is dedicated to finding ways to lower the financial impact of UI taxes on Texas employers. TWC and the state’s 28 local workforce boards are also committed to helping UI claimants return to work as soon as possible. Because the Texas Unemployment Compensation Trust Fund has risen above its statutory minimum required balance, TWC will not charge employers any deficit tax in 2023. More information about the components of the tax rate are on TWC’s website.


Wages often can be the largest portion of expenses for a business. As Texas business owners begin staffing plans for the next year, TWC invites businesses to access data from its annual Occupational Wage Survey, which can provide valuable insights on competitive wages for all types of positions for any area in Texas. Information gathered in the survey is confidential and is reported from Texas employers who participate in the survey. For more information or to participate and assist in making Texas more competitive in the labor marketplace, please contact us by emailing oesinfo@twc.texas.gov or by calling (800) 252-3616.

Request for Applications: High Demand Job Training Grant FY26

By ETCOG & Workforce Solutions East Texas • September 4, 2025
Deadline for applications - September 26, 2025
Two women: one laughing, the other with a raised hand, in a well-lit room, possibly a home or office.

You’re Invited: Let’s Celebrate National Disability Employment Awareness Month (NDEAM)

By Workforce Solutions East Texas • September 3, 2025
Workforce Solutions East Texas (WSET) and Texas Workforce Solutions -Vocational Rehabilitation Services (TWS-VRS) invite you to a celebration event on Tuesday, October 7, 2025, from 9:30 am to noon at the Longview Workforce Solutions Center located at 1905 W. Loop 281, Longview, TX 75604. At WSET, we are deeply committed to fostering an environment that welcomes all abilities in the workforce. National Disability Employment Awareness Month (NDEAM) is a powerful reminder of the immense talent and untapped potential that individuals with disabilities bring to our workplaces. Whether you are an employer seeking to hire individuals with disabilities, an organization championing disability rights, or someone seeking to learn more TWS-VRS we invite you to attend our upcoming event. Our event promises insightful discussions, valuable networking opportunities, stories from participants who are successfully navigating their journey after receiving services through TWS-VRS along with those business partners who have hired them. There will also be resources aimed at helping businesses take significant steps toward creating a workplace that includes all abilities on their team. Let's come together to celebrate our 80th anniversary of National Disability Employment Awareness Month (NDEAM). We celebrate the value and talent that all Americans - including people with disabilities – bring to our businesses, organizations, and communities. Join us in the momentous occasion as we celebrate this milestone in our nation’s history.
A man in a white shirt stands in front of a bookshelf. The words

From Summer Job to Career Path: Malachi Whedbee’s SEAL Success

By Workforce Solutions East Texas • August 26, 2025
When Malachi Whedbee joined the Summer Earn and Learn (SEAL) program, he saw it as an opportunity to gain experience, learn new skills, and contribute to his community. What he didn’t expect was how much of an impact his dedication would make—both on his future and on the people around him. Through SEAL, Malachi began working full-time at the Upshur Rural Library, clocking in at 8:00 a.m. every morning and working until 5:00 p.m. His days were filled with tasks like completing computer library entries, assisting with various projects, and lending a hand wherever needed. But for Malachi, these duties weren’t just boxes to check—they were chances to prove himself. And prove himself he did. Malachi’s exceptional work ethic showed in everything he did. He was always on time, completed assignments with precision, and eagerly stepped up for additional responsibilities. His positive attitude was contagious, creating a welcoming environment for both staff and patrons. Mrs. King, the library’s supervisor, quickly recognized that Malachi was more than just a temporary hire—he was an asset. Describing him as “outgoing, dependable, and hardworking,” she praised his professionalism and the joy he brought to the workplace. By the end of the program, Malachi’s efforts had done more than meet expectations—they had opened a door. Mrs. King was so impressed that she offered him an interview for a permanent position at the library. With the same enthusiasm and determination he brought to every day on the job, Malachi accepted the opportunity. Malachi’s journey through SEAL is more than a personal achievement—it’s a shining example of how young adults with disabilities can break barriers and build meaningful careers when given the chance. His story is a reminder that talent, dedication, and opportunity are the real building blocks of success.
Show More