Texas Workers' Compensation Cost Calculator
Key facts: workers' comp in Texas
- Who must be covered
- Optional for most private employersOfficial agency: TDI-DWC
- Average rate
- $0.78 per $100 of payrollRank #40 of 51 (#1 = most expensive), below the $1.09 national median
- Rating organization
- NCCINational Council on Compensation Insurance · Private insurers and a state-created carrier
- Verified from official records
- October 3, 2026Rates: Oregon DCBS study, June 2025
In Texas, workers' comp is elective for most private employers: those who don't buy it are known as non-subscribers. Public employers must be covered. Employers who buy coverage can turn to Texas Mutual, which state law charges with being a competitive force in the market and the insurer of last resort.
Rates in effect July 1, 2023 · Oregon Department of Consumer and Business Services, 2024 study (June 2025) · Nothing you enter leaves your browser
2024 study rate for all industries in Texas. 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
$7,800
per year at an EMR of 1.00
At an average mod
$7,800
per year at an EMR of 1.00
Your EMR's impact
$0
no adjustment
Effective cost: $0.78 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 Texas?
Coverage optional
Optional for most private employers
Private employers can choose whether to carry coverage; public employers must be covered.
Employers who opt out are called non-subscribers. They must report to the state that they don't have coverage, and if an injured employee sues them, they can't defend themselves by arguing that the employee was negligent, assumed the risk, or was hurt by a co-worker's negligence (Tex. Lab. Code § 406.033). Coverage, by contrast, limits that liability except when gross negligence results in a fatality.
Official agency
Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC)
Market: Private insurers and a state-created carrier · Law: Tex. Lab. Code § 406.002
Texas workers' comp rates by business type
Rate per $100 of payroll for common class codes in Texas, against the median of the 51 jurisdictions in the study.
| Business type (NCCI code) | Texas | U.S. median | Difference |
|---|---|---|---|
| Office and clerical staff (8810) | $0.07 | $0.11 | −36% |
| Retail store (8017) | $0.99 | $1.20 | −17% |
| Restaurant (full service) (9082) | $0.81 | $1.09 | −26% |
| Restaurant (fast food) (9083) | $0.81 | $1.09 | −26% |
| Hotel (all other employees) (9052) | $1.19 | $1.79 | −34% |
| Assisted living / retirement center (care staff) (8824) | $1.70 | $2.03 | −16% |
| Hospital (professional staff) (8833) | $0.51 | $0.82 | −38% |
| Electrical contractor (5190) | $2.51 | $2.37 | +6% |
| Plumbing contractor (5183) | $2.13 | $2.70 | −21% |
| Residential carpentry (up to 3 stories) (5645) | $6.40 | $8.71 | −27% |
| Roofing (5551) | $2.57 | $9.64 | −73% |
| Trucking (7219) | $2.31 | $5.72 | −60% |
Texas uses NCCI class codes. Your insurer applies the rate for your own classes, then your EMR.
What a bad EMR costs in Texas
Take $500,000 of payroll at Texas's $0.78 index rate: $3,900 a year at an average mod of 1.00.
- EMR 0.85
- $3,315/yr
- EMR 1.25
- $4,875/yr
- Difference
- +$1,560/yr
A claim year usually stays in the mod for three renewals, so the gap adds up to about $4,680. 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 accountTexas workers' comp FAQ
Is workers' comp insurance mandatory in Texas?
It's optional (Tex. Lab. Code § 406.002). Private employers can choose whether to carry coverage; public employers must be covered. Employers who opt out are called non-subscribers. They must report to the state that they don't have coverage, and if an injured employee sues them, they can't defend themselves by arguing that the employee was negligent, assumed the risk, or was hurt by a co-worker's negligence (Tex. Lab. Code § 406.033). Coverage, by contrast, limits that liability except when gross negligence results in a fatality. Source: Texas Department of Insurance, Division of Workers' Compensation.
How are workers' comp rates set in Texas?
Employers can buy coverage from private insurers or from a carrier created by the state that competes with them. The Oregon DCBS study lists NCCI (the National Council on Compensation Insurance) as Texas'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 Texas?
The Oregon Department of Consumer and Business Services's 2024 study puts Texas's all-industry index rate at $0.78 per $100 of payroll for rates in effect on July 1, 2023, 72% of the study's national median of $1.09. That ranks Texas #40 of 51 jurisdictions, where #1 is the most expensive (#43 in the 2022 study). Your own rate depends on your class codes.
Sources
Official texts behind this page (7 quotes)
“Texas Department of Insurance 1601 Congress Avenue, Austin, TX 78701”
Employer resources — Texas Department of Insurance (opens in a new tab) · checked October 3, 2026
“In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases.”
Employer resources — Texas Department of Insurance (opens in a new tab) · checked October 3, 2026
“Sec. 406.002. COVERAGE GENERALLY ELECTIVE. (a) Except for public employers and as otherwise provided by law, an employer may elect to obtain workers' compensation insurance coverage.”
Texas Labor Code, Chapter 406 — Texas Legislature (opens in a new tab) · checked October 3, 2026
“Sec. 406.033. COMMON-LAW DEFENSES; BURDEN OF PROOF. (a) In an action against an employer by or on behalf of an employee who is not covered by workers' compensation insurance obtained in the manner authorized by Section 406.003 to recover damages for personal injuries or death sustained by an employee in the course and scope of the employment, it is not a defense that: (1) the employee was guilty of contributory negligence; (2) the employee assumed the risk of injury or death; or (3) the injury or death was caused by the negligence of a fellow employee.”
Texas Labor Code, Chapter 406 — Texas Legislature (opens in a new tab) · checked October 3, 2026
“Except when gross negligence results in a fatality, coverage limits liability if an employee sues your business for damages.”
Employer resources — Texas Department of Insurance (opens in a new tab) · checked October 3, 2026
“Employers without workers' compensation insurance coverage (also called non-subscribers) Must report to the state that they do not have coverage.”
Employer resources — Texas Department of Insurance (opens in a new tab) · checked October 3, 2026
“The company shall: (1) serve as a competitive force in the marketplace; (2) guarantee the availability of workers' compensation insurance in this state; and (3) serve as an insurer of last resort as provided by Subchapter H.”
Texas Insurance Code, Chapter 2054 (Texas Mutual Insurance Company) — Texas 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.