Workers Comp Cost in Texas
2026 rates — mandatory for most Texas employers
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.
How Your Safety Record Affects Workers Comp Cost in Texas
Estimated annual cost at $500K payroll, average industry risk — Texas rates
| EMR | Safety Profile | Est. Annual Cost |
|---|---|---|
| 0.75 | Excellent safety | $5,513/yr |
| 0.85 | Good safety record | $6,248/yr |
| 1.00 ★ | Average (no claims) — baseline | $7,350/yr |
| 1.15 | Some claims history | $8,453/yr |
| 1.30 | Frequent claims | $9,555/yr |
| 1.50 | Poor safety record | $11,025/yr |
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.
5 Ways to Lower Your Workers Comp Cost in Texas
Audit Your Class Codes
Workers comp premiums are driven by class codes — and misclassification is extremely common. A clerical employee coded as a "general laborer" can cost 10–20× more in premium. Request a full class code audit from your broker or carrier. Texas businesses that correct misclassifications routinely save 15–30% without changing coverage.
Implement a Formal Safety Program
Most Texas carriers offer Schedule Credits of 5–25% for documented safety programs. Requirements typically include: written safety manual, regular safety meetings, incident reporting procedures, and a designated safety officer. A formal program also reduces actual claims — the biggest long-term driver of your EMR and future premiums.
Start a Return-to-Work Program
The #1 way to reduce claim costs is getting injured employees back to work as quickly as possible — even in a modified-duty role. Claims that result in extended time off are 3–5× more expensive than those with immediate return to modified duty. Texas employers with documented return-to-work programs typically reduce claim duration by 30–50%.
Use Pay-As-You-Go Workers Comp
Traditional workers comp requires a large upfront deposit and a year-end audit — audits commonly result in surprise additional premiums. Pay-as-you-go workers comp (tied to each payroll run) eliminates deposit requirements, spreads costs evenly, and eliminates large audit adjustments. Widely available in Texas through most major carriers including NEXT Insurance and The Hartford.
Shop Carriers at Every Renewal
Rate variations of 20–40% between carriers for identical Texas coverage are common. Construction and roofing rates in Texas track near national averages. Never auto-renew — get at least 3 quotes before your renewal date. Online carriers like NEXT Insurance offer instant quotes for most Texas industries, making comparison shopping faster than ever.
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)