Unemployment Benefit Calculator

Unemployment Benefits & Wage Replacement Guide

Unemployment Insurance (UI) provides temporary financial assistance to eligible workers who become unemployed through no fault of their own. Benefit amounts are determined based on past quarter earnings and state benefit caps.

How Unemployment Benefits Are Calculated

Most states replace roughly 50% of your average weekly gross wages during your highest-earning quarter (highest quarter earnings divided by 13 weeks), up to a maximum weekly benefit cap:

$$\text{Raw Weekly Benefit} = \text{Average Weekly Wage} \times \text{Replacement Rate}$$

$$\text{Actual Weekly Benefit} = \min(\text{Raw Weekly Benefit}, \text{State Maximum Cap})$$

Taxability of Unemployment Payouts

Unemployment benefits are considered taxable income by the IRS and must be reported on federal tax returns. Claimants can choose to have a flat 10% withheld for federal income taxes.