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Texas Workers' Comp Rate Calculator

Calculate your workers' compensation costs in Texas. Compare direct carrier vs PEO rates by industry. All calculations use real NCCI class code data and Texas regulatory filings.

State Avg Rate / $100
$1.05
Regulatory Body
Texas Department of Insurance, Division of Workers' Compensation
Top Carriers
Texas Mutual, Travelers, Zenith National
Market Type
Step 1 — Your Business
About Your Texas Business
Enter your business details to calculate your workers' comp premium. We auto-populate Texas-specific rates based on your industry.
Step 2 — Experience & Claims
Your Claims History
Your Experience Modification Rate (EMR) is the single biggest lever on your premium. Enter your claims history to see how it impacts your costs and future trajectory.
Claims History (Last 3 Years)
Total Incurred ($)
# of Claims
Year 1
Year 2
Year 3
Step 3 — Compare Options
Compare Your Coverage Options
See how a PEO's pooled workers' comp program could reduce your rates. PEOs leverage group buying power across thousands of employees to negotiate lower rates, especially for high-risk trades.
Your Results
Workers' Comp Premium Analysis
Your estimated annual premium based on Texas rates, your industry classification, and experience modification.
Current Annual Premium
$0
Payroll/100 × Rate × EMR
Based on Texas filed rates for selected class code
3-Year Premium Projection
YearDirect Carrier
EMR Trajectory: Direct vs PEO Path (3-Year Projection)
Direct Path
PEO Path
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Built on Real Pricing Data — Not Guesswork

This tool is powered by actuarial and regulatory datasets, calibrated to 2026 Texas market conditions.

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NCCI Class Codes & Base Rates

Official class code classifications and advisory base rates filed with the Texas Department of Insurance, Division of Workers' Compensation for Texas employers.

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State WC Bureau Filings

Texas workers' comp rate filings, loss cost multipliers, and regulatory requirements from the Texas Department of Insurance, Division of Workers' Compensation.

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NAPEO PEO Benchmarks

PEO pooled rate benchmarks from the National Association of Professional Employer Organizations, covering 500+ PEOs nationwide.

Get a Free Custom Report

Get a detailed workers' comp report with your specific numbers — prepared by a BENEFITRA advisor who specializes in Texas employers.

Calculation Methodology ▼
How This Calculator Works
  • Annual Premium = (Annual Payroll / 100) × Base WC Rate × Experience Modification Rate (EMR)
  • PEO Premium = (Annual Payroll / 100) × PEO Pooled Rate × PEO Pooled EMR Factor
  • EMR Projection: Based on NCCI split-point formula. Claims history impacts future EMR over a 3-year rolling window.
  • PEO Discount: PEO rates use a discount factor of 0.55 applied to direct market rates, reflecting pooled buying power.
  • 3-Year Trend: Direct carrier premiums trend at +3%/year (10-year average). PEO premiums trend at +2%/year due to scale.
  • Safety Credit: A 5% premium credit is applied when a formal safety program is in place.

Disclaimer: This calculator provides estimates for educational purposes. Actual premiums depend on your specific underwriting, claims history, and carrier selection. Data sources: NCCI, Texas Department of Insurance, Division of Workers' Compensation, NAPEO, BLS. Calibrated to 2026 market conditions.

Workers' comp in Texas: how the system works

Texas is the only state where carrying workers' compensation is largely optional for private employers. Many still carry it, and those that opt out, known as non-subscribers, give up key liability protections in exchange. Coverage that is purchased is written on the private market, with rates filed using NCCI loss costs.

For roofing and construction employers, the class code drives the rate more than anything else: roofing carries some of the highest workers' comp rates of any trade because of fall exposure. Wherever you operate, the experience modification rate is the biggest lever you control, and a cleaner claims history compounds into lower premiums year over year.

Texas workers' comp at a glance:

Official source: the Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC).

Model your own numbers with the EMR Scenario Modeler, then see how lower comp cost frees budget for benefits in the Benefits ROI Calculator.

Frequently asked questions

Who sets workers' comp rates in Texas?

For employers who carry coverage, rates are filed through the Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC) using NCCI loss costs, with individual carriers adding their own multipliers.

Is workers' comp required in Texas?

Largely optional in Texas, unlike every other state. But opting out removes important legal protections, so most employers still carry it. Confirm your situation with the TDI Division of Workers' Compensation.

Reviewed by Sam Newland, CFP, Founder of Benefitra. Last updated June 2026.