Arizona Workers' Compensation Cost Calculator
Key facts: workers' comp in Arizona
- Who must be covered
- Mandatory starting at 1 employeeOfficial agency: ICA
- Average rate
- $0.70 per $100 of payrollRank #46 of 51 (#1 = most expensive), below the $1.09 national median
- Rating organization
- NCCINational Council on Compensation Insurance · Private insurers
- Verified from official records
- October 3, 2026Rates: Oregon DCBS study, June 2025
Arizona's workers' comp law covers every employer of workers regularly employed in the same business, except employers of domestic servants. Employers insure with a carrier authorized by the Department of Insurance and Financial Institutions, or prove to the Industrial Commission they can pay directly or through an approved pool.
Rates in effect January 1, 2024 · Oregon Department of Consumer and Business Services, 2024 study (June 2025) · Nothing you enter leaves your browser
2024 study rate for all industries in Arizona. Edit it if your policy shows a different rate.
For the class you're pricing. Insurers rate each class code's payroll separately.
Printed on your experience rating worksheet or renewal. New or small employers that don't qualify for experience rating are rated at 1.00.
Estimated premium
$7,000
per year at an EMR of 1.00
At an average mod
$7,000
per year at an EMR of 1.00
Your EMR's impact
$0
no adjustment
Effective cost: $0.70 per $100 of payroll.
At an EMR of 1.00, your claims history neither raises nor lowers this premium.
Every claim from now on counts toward your next three renewals. IncidentLog makes the first step — a complete, same-day incident report — take about 90 seconds from a job-site QR code.
Create a free accountEstimate before schedule credits or debits, premium discounts, expense constants, state assessments and minimum premiums — your insurer's quote will differ.
Who must carry workers' comp in Arizona?
Mandatory starting at 1 employee
Employers of domestic servants are exempt.
Official agency
Industrial Commission of Arizona (ICA)
Market: Private insurers · Law: Ariz. Rev. Stat. §§ 23-902 and 23-961
Arizona workers' comp rates by business type
Rate per $100 of payroll for common class codes in Arizona, against the median of the 51 jurisdictions in the study.
| Business type (NCCI code) | Arizona | U.S. median | Difference |
|---|---|---|---|
| Office and clerical staff (8810) | $0.08 | $0.11 | −27% |
| Retail store (8017) | $0.89 | $1.20 | −26% |
| Restaurant (full service) (9082) | $0.74 | $1.09 | −32% |
| Restaurant (fast food) (9083) | $0.61 | $1.09 | −44% |
| Hotel (all other employees) (9052) | $1.15 | $1.79 | −36% |
| Assisted living / retirement center (care staff) (8824) | $1.35 | $2.03 | −33% |
| Hospital (professional staff) (8833) | $0.50 | $0.82 | −39% |
| Electrical contractor (5190) | $1.81 | $2.37 | −24% |
| Plumbing contractor (5183) | $2.03 | $2.70 | −25% |
| Residential carpentry (up to 3 stories) (5645) | $8.25 | $8.71 | −5% |
| Roofing (5551) | $5.39 | $9.64 | −44% |
| Trucking (7219) | $3.95 | $5.72 | −31% |
Arizona uses NCCI class codes. Your insurer applies the rate for your own classes, then your EMR.
What a bad EMR costs in Arizona
Take $500,000 of payroll at Arizona's $0.70 index rate: $3,500 a year at an average mod of 1.00.
- EMR 0.85
- $2,975/yr
- EMR 1.25
- $4,375/yr
- Difference
- +$1,400/yr
A claim year usually stays in the mod for three renewals, so the gap adds up to about $4,200. The mod is built from claims, and the cheapest claim is the injury caught early.
IncidentLog lets crews report an injury or near miss from a job-site QR code in about 90 seconds, so you hear about it the same shift and see patterns on your OSHA 300 log before they become claims.
Create a free accountArizona workers' comp FAQ
Is workers' comp insurance mandatory in Arizona?
Yes. Arizona requires workers' compensation coverage from the first employee (Ariz. Rev. Stat. §§ 23-902 and 23-961). Employers of domestic servants are exempt. Source: Industrial Commission of Arizona.
How are workers' comp rates set in Arizona?
Employers buy coverage from private insurance companies. The Oregon DCBS study lists NCCI (the National Council on Compensation Insurance) as Arizona's rating organization. Your own premium then depends on your class codes, your payroll and your experience modification rate (EMR).
What is the average workers' comp rate in Arizona?
The Oregon Department of Consumer and Business Services's 2024 study puts Arizona's all-industry index rate at $0.70 per $100 of payroll for rates in effect on January 1, 2024, 64% of the study's national median of $1.09. That ranks Arizona #46 of 51 jurisdictions, where #1 is the most expensive (#44 in the 2022 study). Your own rate depends on your class codes.
Sources
Official texts behind this page (3 quotes)
“Employers subject to this chapter are the state, each county, city, town, municipal corporation and school district and every person who employs any workers or operatives regularly employed in the same business or establishment under contract of hire, including covered employees pursuant to a professional employer agreement, except domestic servants.”
A.R.S. 23-902, Employers subject to chapter — Arizona Legislature (opens in a new tab) · checked October 3, 2026
“A. Employers shall secure workers' compensation to their employees in one of the following ways: 1. By insuring and keeping insured the payment of such compensation with an insurance carrier authorized by the director of the department of insurance and financial institutions to write workers' compensation insurance in this state.”
A.R.S. 23-961, Methods of securing compensation by employers — Arizona Legislature (opens in a new tab) · checked October 3, 2026
“A. There shall be an industrial commission of Arizona.”
A.R.S. 23-101, Industrial commission — Arizona Legislature (opens in a new tab) · checked October 3, 2026
An estimate for planning, not a quote, legal or insurance advice. IncidentLog is not an insurer or broker. Median rate across all industries: $1.09 per $100.