U.S. Virgin Islands payroll taxes for employers
What an employer in U.S. Virgin Islands pays on top of wages in 2026: state unemployment insurance (SUTA), federal unemployment tax (FUTA) and the employer half of Social Security and Medicare.
State unemployment insurance (SUTA)
Employers in U.S. Virgin Islands pay unemployment insurance tax on the first $32,100 of each employee's wages in 2026. New employers start at 4.04%, and rates for established employers range from 2.43% to 5.4%, based on their history of layoffs and claims.
Federal taxes every employer pays
- Social Security: 6.2% from the employer and 6.2% from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each, with no cap. Withhold an extra 0.9% from an employee's wages above $200,000 (employee only).
- FUTA: 0.6% on the first $7,000 of each employee's wages after the normal state credit, up to $42 per employee. U.S. Virgin Islands is a credit reduction state: for 2025 its employers lost 4.5% of the credit, making the rate 5.1%. For 2026 the reduction could reach 4.8%; the final figure comes after November 10, 2026.
Example: one new employee earning $50,000
| Social Security and Medicare (employer share) | $3,825 |
| FUTA at 5.1% (2025 rate, with credit reduction) | $357 |
| U.S. Virgin Islands SUTA at 4.04% on $32,100 | $1,297 |
| Employer payroll taxes | $5,479 (11% of wages) |
Excludes workers' compensation insurance, benefits and any local taxes. The 2026 FUTA credit reduction may be higher (up to 4.8%). Your actual SUTA rate is on the notice the state sends you.
Running payroll in U.S. Virgin Islands?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- US Department of Labor, Employment and Training Administration (Significant Provisions of State UI Laws, July 2026) · data as of July 1, 2026 · last checked October 9, 2026
- Internal Revenue Service, Publication 15 (Circular E), 2026 · data as of January 1, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.