Workers Comp Rates in Texas (TX)

Texas workers comp rates are approximately 5% below the national average. Here's what Texas business owners need to know about classification and premiums.

Texas Workers Comp Overview

Texas is unique — it's the only state where workers comp is not mandatory for private employers. But if you do carry it, proper classification matters. Texas uses the NCCI system and rates are moderate compared to coastal states.

How Texas Rates Compare

With a state modifier of 0.95x, a business in Texas paying $10,000 in base premium nationally would pay approximately $9,500 in TX. This makes proper classification even more important in Texas — every misclassified employee costs more.

The most impactful thing a Texas business owner can do is ensure that office, clerical, and administrative employees are coded separately from their operational staff. In TX, the difference between a clerical code (8810 at $0.16/$100) and a construction code (5403 at $9.42/$100) is massive — and that gap is amplified by the state modifier.

This guide is for informational purposes only and is not insurance advice. Texas rates and requirements are subject to change.