Business & Insurance · Texas

Workers Comp Cost in Texas

2026 rates — mandatory for most Texas employers

$1.10 per $100 payroll
Texas avg rate
$7,350/yr
$500K payroll, avg risk
Mandatory in Texas: NO — Texas is the only state where workers comp is NOT mandatory

Calculate Your Texas Workers Comp Cost

Workers Comp Rates by Industry — Texas 2026

Industry Class Risk Level Rate / $100 payroll
Clerical / Office (8810) Very Low $0.20 – $0.45
Retail / Wholesale (8017–8018) Low $0.80 – $2.00
Restaurant / Food Service (9082) Moderate $1.50 – $3.50
Light Manufacturing (3632) Moderate $2.00 – $5.00
Trucking / Delivery (7219–7231) High $4.00 – $8.00
Construction / Carpentry (5645) High $5.00 – $12.00
Roofing (5551) Very High $8.00 – $18.00

Rates are advisory/illustrative. Actual Texas rates vary by carrier, your specific class codes, and Experience Mod.

Workers Comp in Texas — Key Facts

1. Texas Requirement & Market

Mandatory: NO — Texas is the only state where workers comp is NOT mandatory

Market: Private market only (no state fund) — "non-subscriber" option exists

Texas is the only US state where workers' compensation is NOT mandatory for most private employers. Texas employers can be "non-subscribers" — meaning they opt out of the workers' comp system entirely. However, non-subscribers face significant legal liability for workplace injuries (cannot use most common law defenses). Most Texas employers still purchase workers' comp coverage for liability protection.

2. Top Cost Tips for Texas

Texas employers: consult an attorney before choosing "non-subscriber" status — while it's legal, the legal exposure from workplace injuries without workers' comp can be severe. For most businesses, standard workers' comp provides better protection. Texas rates are below national average in most class codes.

Compare Workers Comp Quotes in Texas

Rates vary 20–40% between carriers for identical coverage. Compare before your next renewal.

Texas Workers Comp Summary

  • Avg rate: $1.10 per $100 payroll
  • $500K payroll: ~$7,350/yr avg risk
  • Cost vs national: near average
  • Mandatory: No (only such state)