If you own a corporation or LLC and you’re covered by your own workers’ comp policy, your premium isn’t based on what you actually pay yourself. Every state’s rating rules set a minimum and maximum annual payroll for executive officers, and a flat amount or cap for sole proprietors and partners who choose to be covered. The premium auditor plugs those numbers in, whatever your W-2 or draws say.
That matters most at the extremes. An owner who pays themselves little is billed as if they earned the state minimum; a high-earning owner is billed only up to the maximum. The table below gives the 2026 figures for every state that uses them.
How the Limits Work
- Executive officers and LLC members who are covered: actual remuneration is used, but never less than the state minimum or more than the state maximum.
- Sole proprietors and partners are usually not covered unless they elect it. When they do, most states assign a flat annual amount; some use actual earnings up to a cap.
- Owners who exclude themselves add no payroll — but they also have no benefits if they’re hurt. Whether and how an owner can opt out depends on the state (ownership percentage, title, and the form to file).
- The limits change every year, usually on a date tied to the state’s rate filing. The figures in force on your policy’s effective date are the ones used at audit.
| Owner pays themselves | Payroll used for premium (Tennessee example: $67,600–$270,400) | Premium at $3.00 per $100 |
|---|---|---|
| $30,000 | $67,600 (minimum applies) | $2,028 |
| $120,000 | $120,000 (actual pay) | $3,600 |
| $400,000 | $270,400 (maximum applies) | $8,112 |
Tennessee non-construction officer limits for policies from March 1, 2026; rate is illustrative. Premium shown before experience mod, schedule rating and other adjustments.
2026 Owner and Officer Payroll Limits by State
| State | Executive officers (annual) | Sole proprietors / partners (if covered) | Policies effective on or after |
|---|---|---|---|
| Alabama | $59,800 – $244,400 | $61,000 flat | March 1, 2026 |
| Alaska | $33,800 – $135,200 | $43,200 flat | January 1, 2026 |
| Arizona | $70,200 – $286,000 | actual, up to $70,879 | January 1, 2026 |
| Arkansas | $57,200 – $234,000 | $58,300 flat | July 1, 2026 |
| California | $63,700 – $165,100 | actual, up to $165,100 | September 1, 2025 |
| Colorado | $79,800 flat | $79,800 flat | January 1, 2026 |
| Connecticut | $88,400 – $176,800 | $89,200 flat | January 1, 2026 |
| Delaware | $72,072 – $288,600 | actual, up to $288,600 | December 1, 2025 |
| District of Columbia | $93,600 – $374,400 | $94,100 flat | January 1, 2026 |
| Florida | $67,600 – $202,800 | $67,300 flat | January 1, 2026 |
| Georgia | $72,800 – $286,000 | $71,600 flat | March 1, 2026 |
| Hawaii | $62,400 – $249,600 | $62,000 flat | January 1, 2026 |
| Idaho | $54,600 – $223,600 | $27,900 flat | January 1, 2026 |
| Illinois | $75,400 – $301,600 | $75,500 flat | January 1, 2026 |
| Indiana | $54,600 – $254,800 | actual, up to $254,800 | January 1, 2026 |
| Iowa | $31,200 – $244,400 | actual, up to $244,400 | January 1, 2026 |
| Kansas | $59,800 – $239,200 | $60,300 flat | January 1, 2026 |
| Kentucky | $57,200 – $234,000 | $58,200 flat | January 1, 2026 |
| Louisiana | $59,800 – $182,000 | $60,800 flat | May 1, 2026 |
| Maine | $31,200 – $249,600 | $62,300 flat | April 1, 2026 |
| Maryland | $78,000 – $312,000 | $77,600 flat | January 1, 2026 |
| Massachusetts | $16,120 – $79,560 | $70,000 flat | October 1, 2025 |
| Michigan | $32,916 – $130,000 | $26,000 flat | January 1, 2026 |
| Minnesota | $73,996 – $295,984 | actual, up to $295,984 | January 1, 2026 |
| Mississippi | $49,400 – $166,400 | $49,200 flat | March 1, 2026 |
| Missouri | $57,100 flat | $57,100 flat | January 1, 2026 |
| Montana | $10,400 – $88,686 | actual, up to $88,686 | July 1, 2025 |
| Nebraska | $59,800 – $234,000 | $58,800 flat | February 1, 2026 |
| Nevada | $6,000 – $36,000 | $3,600 flat | March 1, 2025 |
| New Hampshire | $39,000 – $322,400 | $40,000 flat | January 1, 2026 |
| New Jersey | $44,720 – $178,360 | actual, up to $178,360 | January 1, 2026 |
| New Mexico | $59,800 – $239,200 | $59,600 flat | January 1, 2026 |
| New York | $50,700 – $153,400 | actual, up to $153,400 | October 1, 2025 |
| North Carolina | $65,000 – $130,000 | $65,300 flat | April 1, 2026 |
| Oklahoma | $57,200 – $223,600 | $56,300 flat | January 1, 2026 |
| Oregon | $72,800 – $296,400 | $73,700 flat | January 1, 2026 |
| Pennsylvania | $70,044 – $280,800 | actual, up to $280,800 | April 1, 2026 |
| Rhode Island | $65,000 – $260,000 | n/a | August 1, 2025 |
| South Carolina | $28,600 – $234,000 | $59,000 flat | April 1, 2026 |
| South Dakota | $54,600 – $223,600 | $55,400 flat | July 1, 2025 |
| Tennessee | $67,600 – $270,400 | $67,400 flat | March 1, 2026 |
| Texas | $7,800 – $62,400 | $79,200 flat | July 1, 2026 |
| Utah | $67,600 – $270,400 | $67,900 flat | February 1, 2026 |
| Vermont | $31,200 – $244,400 | $30,600 flat | April 1, 2025 |
| Virginia | $39,000 – $150,800 | $76,100 flat | April 1, 2026 |
| West Virginia | $57,200 – $228,800 | $57,700 flat | January 1, 2026 |
| Wisconsin | $20,696 – $103,428 | $68,952 flat | October 1, 2025 |
Sources: ICW Group 2026 officer and partner payroll billing table; LUBA Workers’ Comp owner and executive officer payroll limitations (May 5, 2026) for Arkansas and Texas 2026–27 values. Ohio, North Dakota, Washington and Wyoming are monopolistic state-fund states with their own owner-coverage rules and aren’t listed. Confirm current figures with your carrier.
State Quirks Worth Knowing
- Flat-amount states: Colorado ($79,800) and Missouri ($57,100) count every covered officer, owner or partner at one figure regardless of pay.
- Texas has a very low officer range ($7,800 to $62,400) but counts sole proprietors and partners who elect coverage at a flat $79,200.
- Construction: Florida sets a lower $33,800 minimum for construction officers, and Tennessee uses separate construction limits ($33,800 to $99,320 for officers). Construction is also where states most often require owners to be covered or to hold an exemption certificate.
- Massachusetts and Montana have unusually low officer minimums ($16,120 and $10,400); Nevada’s published figures are lower still and older, so check them with your carrier.
- California applies its own rules through the WCIRB, with the officer range shown above effective September 1, 2025.
Should an Owner Be Included?
Including yourself costs the state minimum times your class rate, every year. Excluding yourself saves that, but your own health insurance and disability coverage then carry the cost of a work injury, and some health insurers deny claims for injuries that are work-related. Two situations push owners toward inclusion: working in a high-hazard trade, and clients who require proof of coverage for everyone on site — the reason ghost policies exist for owners with no employees. Our workers’ comp calculator estimates premium by class and payroll, and the premium audit guide explains how the auditor applies these limits.
Frequently Asked Questions
What is the minimum payroll for a corporate officer on workers' comp?
It depends on the state. Each state sets an annual minimum and maximum for covered executive officers; for 2026 policies the minimum ranges from under $10,000 in a few states to more than $80,000 in others, for example $67,600 in Tennessee and $75,400 in Illinois. If an officer is paid less than the minimum, premium is charged on the minimum.
How is workers' comp premium calculated for a sole proprietor?
Sole proprietors are usually not covered unless they elect coverage. If they do, most states assign a flat annual payroll, such as $67,400 in Tennessee or $79,800 in Colorado, and premium is that amount divided by 100 times the class rate. A few states use actual earnings up to a cap.
Is there a maximum payroll for owners on workers' comp?
Yes, for executive officers in most states. Payroll above the state maximum is not counted; for example, the 2026 maximum is $270,400 in Tennessee and Utah and $301,600 in Illinois. Colorado and Missouri use a single flat figure instead.
Can an owner exclude themselves from workers' comp?
In most states, corporate officers and LLC members who meet ownership and title requirements can file to exclude themselves, and sole proprietors and partners are excluded unless they elect coverage. Excluded owners add no payroll but have no workers' comp benefits. Rules are stricter in construction in several states.
When do owner payroll limits change?
Annually, on a date tied to each state's rate filing, often January 1, March 1, April 1 or July 1. The limits in effect on your policy's effective date are the ones applied at the premium audit.
This content is for informational purposes only and does not constitute insurance advice. Figures are taken from published 2026 carrier billing tables that reflect NCCI and state rating-bureau rules; they change annually and your carrier may apply different effective dates. Confirm the limits that apply to your policy with your agent or insurer.