2026-2027 Maximum Workers’ Compensation Weekly Benefit By State

Key Takeaways

Workers' comp weekly benefits are typically two-thirds of your average weekly wage (AWW), capped at your state's maximum - a handful of states (Michigan, Iowa, Rhode Island, Connecticut, Alaska) use different formulas based on after-tax or spendable earnings.
Maximum weekly benefits vary enormously by state: Illinois' cap topped $2,000/week in early 2026, while smaller states cap well under $1,000.
Most states adjust their maximum every January 1; a few - including New York, Massachusetts, Texas, and Illinois - adjust on other dates (July 1, October 1, or twice a year).
Your benefit rate locks in on your date of injury and does not increase later even if the state raises its maximum the following year.
Workers' comp benefits are completely exempt from federal and state income tax under 26 U.S.C. u00a7 104(a)(1).

Every state, U.S. territory, and D.C. sets its own maximum weekly workers’ compensation benefit — the highest amount an injured worker can receive, regardless of how much they earned before the injury.

These caps are recalculated every year (and sometimes twice a year), tied to each state’s average weekly wage, so the number that applied to your 2023 injury is almost never the number that applies today.

If you were hurt on the job in 2026, your benefit is based on the maximum rate in effect on your date of injury — not the rate in effect when your claim is decided or when you read this article.

Covered in this Article:

2026 Maximum Weekly Workers’ Comp Benefit by State

Because each state sets its own formula and adjustment date, there’s no single federal table — unlike, say, the minimum wage, which the Department of Labor tracks centrally.

State	2026 Maximum Weekly Benefit	Adjusts On
California	$1,764.11	January 1
Florida	$1,358	January 1
Illinois	$2,008.60 (as of Jan 15, 2026)	January 15 & July 15
Maryland	$1,322	January 1
Massachusetts	$1,922.48	October 1
New Jersey	$1,199	January 1
New York	$1,222.42	July 1
Ohio	$1,281	January 1
Pennsylvania	$1,394.00	January 1
South Carolina	$1,178.30	January 1
Texas	$1,271	October 1
District of Columbia	$1,808.66 (2025 confirmed rate)	Annual COLA

Sources: state workers’ compensation boards and insurance departments — California DIR, Florida CFO’s Office, Illinois Workers’ Compensation Commission, Maryland WCC, Massachusetts EOLWD, New Jersey DOL, New York WCB, Ohio BWC, Pennsylvania DLI, South Carolina WCC, Texas DWC. Full 50-state + territory chart: SSA POMS DI 52150.045.

The verified 2026 maximums above cover the most-searched states; for any state not listed, the Social Security Administration maintains an official chart of every state’s maximum workers’ comp benefit that’s updated as states publish new rates.

How the Maximum Is Calculated

Most states pay two-thirds (66.67%) of your average weekly wage, capped at the state maximum. A few states use a different formula entirely:

Michigan and Alaska: 80% of your after-tax or “spendable” wages
Iowa: 80% of spendable earnings
Rhode Island: 75% of spendable earnings
Connecticut: 75% of after-tax average weekly wage
Texas: 70% of average weekly wage

Your average weekly wage (AWW) is usually calculated from your gross earnings over the 52 weeks before your injury, though some states use your highest-earning 13 weeks instead. Overtime and shift differentials typically count toward AWW; tips and one-time bonuses are handled differently depending on the state.

If two-thirds (or your state’s percentage) of your AWW comes out above the state maximum, you’re capped at the maximum — you don’t get the extra. If it comes out below your state’s minimum weekly benefit, most states have a wage floor instead.

Subscribe or follow us to get updates as more states finalize their 2027 rates.

Two Examples: What This Looks Like on a Paycheck

Maria works at a distribution center in Ohio earning $950/week. She injures her back and is out of work for 10 weeks. Ohio pays two-thirds of AWW: $950 × 0.667 = $633.37/week, well under Ohio’s $1,281 maximum, so she receives the full two-thirds — about $6,334 tax-free over 10 weeks.

David is an ICU nurse in California earning $1,900/week between base pay and shift differentials. Two-thirds of that is $1,266.87/week — still under California’s $1,764.11 maximum for 2026, so he also receives the full two-thirds rather than being capped.

A higher earner making $3,000/week in the same California claim would be capped at $1,764.11/week regardless of how much two-thirds of their actual wage would otherwise come to.

Common Issues to Watch Out For

Using last year’s rate. Because most states adjust every January 1 (with New York, Massachusetts, and Texas on their own schedules), an injury in December 2025 and an injury in January 2026 can be governed by two different maximums even though only weeks apart.
Assuming the national two-thirds rule applies everywhere. Michigan, Iowa, Rhode Island, Connecticut, Alaska, and Texas all use different percentages or definitions of wages — don’t assume your state uses the standard two-thirds-of-gross formula.
Confusing the benefit type. Temporary total disability (TTD), temporary partial disability (TPD), permanent partial disability (PPD), and permanent total disability (PTD) are calculated differently, and only TTD uses the straightforward AWW-times-percentage math shown above.
Forgetting the waiting period. Most states require you to be out of work 3 to 7 days before benefits start, and some don’t pay retroactively for that waiting period unless your disability lasts past a state-set threshold (often 14 or 21 days).
Not knowing your rate is locked in. If your state raises its maximum the year after your injury, your benefit does not increase — it stays tied to the maximum in effect on your date of injury.

Looking Ahead: 2027 Outlook

Workers’ comp maximums are tied to each state’s average weekly wage, which typically rises 2–5% a year depending on local wage growth. States that adjust every January 1 will publish their 2027 maximums in the final months of 2026 — usually October through December — based on wage data collected earlier in the year. States on other cycles (New York and Illinois in July, Massachusetts and Texas in October) will publish their next adjustments closer to those dates.

If you were injured in late 2026 and your state hasn’t published its 2027 rate yet, the current-year maximum still applies to your claim based on your date of injury — it won’t change retroactively once the new rate is announced.

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Frequently Asked Questions

QHow much does workers' comp pay per week in 2026?

AMost states pay two-thirds of your average weekly wage, tax-free, up to a state-set maximum. The 2026 maximums range from around $1,178/week (South Carolina) to over $2,000/week (Illinois), depending on the state.

QIs workers' comp taxable?

ANo. Workers' compensation benefits are exempt from federal and state income tax under 26 U.S.C. u00a7 104(a)(1). The only exception is a partial offset if you're also receiving Social Security Disability (SSDI) at the same time.

QWhich state has the highest workers' comp maximum in 2026?

AIllinois had the highest confirmed 2026 maximum at $2,008.60/week (effective January 15, 2026), followed by Massachusetts at $1,922.48/week.

QCan I get more than my state's maximum workers' comp benefit?

ANo. If two-thirds of your average weekly wage exceeds your state's cap, you receive the cap - not the full two-thirds. High earners are the most likely to be affected by the cap.

QDoes my workers' comp rate increase if my state raises the maximum the next year?

ANo. Your benefit rate is locked in based on your date of injury and does not increase later, even if your state adopts a higher maximum in a subsequent year.

QWhen does workers' comp start paying after an injury?

AMost states have a waiting period of 3 to 7 days before benefits begin. If your disability lasts past a state-set threshold (often 14-21 days), benefits are typically paid retroactively back to day one.