Starting in October 2025, the maximum weekly benefit amount (WBA) for unemployment benefits will increase from $504 per week to $869 per week. Scheduled increases to the maximum WBA have been delayed for years because the state had an outstanding advance from a Title XII loan which was initiated to keep the New York Department of Labor Division of Unemployment’s trust fund solvent. 
The loan and interest were both paid in full recently so the new, higher WBA can now go into effect.
Employers will also see an increase in the taxable wage base (TWB) for 2026 and a decrease in the unemployment tax rate schedule to be used for the 2026 tax rates. The taxable wage base for 2026 is $13,000 which represents an increase of $200 from 2025. The tax rate table to be used for 2026 is not yet finalized because it is based on the Size of Fund Index (SOFI) at the end of the rate fiscal year, which is September 30.
Effective Date
- October 1, 2025 for the increase in the maximum WBA
- January 1, 2026 for the taxable wage base increase
- January 1, 2026 for the decrease in the tax rate schedule
Implication to Stakeholders
The substantial increase in the maximum WBA could negatively impact employers doing business in the state. This is a 72% increase in the weekly benefit amount. Since benefits paid from an employer’s fund balance have an impact on future tax rates, this increase could signal increases in tax rates for years to come.
The increase in TWB may also mean an increase in taxes for employers doing business in the state starting in 2026.
The decrease in the tax rate schedule for 2026 should mean lower taxes for employers however, that, coupled with the increase in the TWB could mean a wash for tax liability year over year (2025/2026). That remains to be seen.
Recommended Action
Employers should monitor their benefit charge statements and tax rates as soon as they are received to prevent unwarranted charges from hitting their account and increasing tax rates.
