How workers' comp weekly benefits are figured
Workers' comp usually pays a share of your average weekly wage up to a state maximum. How the share, the maximum and the waiting period differ across states.
Checked against official sources: October 31, 2026.
The basic idea
While you cannot work, workers' compensation usually pays part of your lost wages each week. The rule is a share of your average weekly wage, up to a state maximum and sometimes with a state minimum. The share, the maximum, the minimum and whether the share is figured on gross pay or on pay after taxes all depend on the state.
Maximums and minimums
Among the 43 states with a weekly maximum, the highest are Iowa ($2,431), Illinois ($2,045.63), and Massachusetts ($2,007.20) and the lowest are Mississippi ($654.63), Georgia ($800), and Indiana ($878).
Some states pay by the month. Nevada ($5,691.79 a month) and Washington ($9,981 a month). We never turn a monthly figure into a weekly one.
The waiting period
Most states make you wait before wage benefits start. Among the 47 states with a number of waiting days: 21 states wait 3 days, 20 states wait 7 days, 4 states wait 5 days, 2 states wait 4 days. In many states the waiting days are paid back if the disability lasts long enough.
Taxes and Social Security
Taxes on workers' compensation Workers' compensation benefits for a work injury or illness are fully exempt from federal income tax when they are paid under a workers' compensation law. Pay you get for doing light-duty work is taxable as wages. If your workers' compensation reduces your Social Security benefits, that part may be taxable as Social Security benefits. Federal employees: FECA compensation is not taxable, but continuation of pay (up to 45 days) and sick leave pay while a claim is decided are taxed as wages.
Law: IRS Publication 525 (2025), Workers' Compensation; 26 U.S.C. 104(a)(1)
Social Security disability and workers' compensation If you get Social Security disability benefits and workers' compensation at the same time, Social Security may reduce its benefit. The reduction applies when your Social Security benefits (including benefits paid to your family on your record) plus your workers' compensation are more than 80% of your 'average current earnings', or more than your family's Social Security benefit before the reduction, if that is higher. A lump-sum workers' compensation settlement can also be counted. The reduction stops when you reach full retirement age. It does not apply when the state law paying your workers' compensation reduces that benefit instead for people on Social Security, if that state rule was in place on February 18, 1981.
Law: 42 U.S.C. 424a(a), (b), (d); SSA POMS DI 52101.001, DI 52105.001
A federal example
Longshore maximum and minimum for October 1, 2026 to September 30, 2027 (fiscal year 2027): maximum $2,163.92 a week, minimum $540.98 a week.
Law: 33 U.S.C. 906(b); DOL Longshore NAWW table
That example is a federal program for certain maritime workers. Your state sets its own figures.
Estimate your own
On the pages of 26 states you can estimate the weekly benefit from your average weekly wage. The estimate follows the state's own rule and is only an estimate: the insurer figures your real wage. Other states have rules a simple estimate cannot show, so those pages give the rule in words.
Pick your state for its numbers:
- Alabama
- Alaska
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Before you act
This guide is general information. It cannot tell you that you qualify or that a claim will be paid: the insurer, the state agency or a judge decides. Check the official sources on your state's page before you act.
Common questions
Is workers' comp taxable?
Workers' compensation benefits for a work injury or illness are fully exempt from federal income tax when they are paid under a workers' compensation law. Pay you get for doing light-duty work is taxable as wages. If your workers' compensation reduces your Social Security benefits, that part may be taxable as Social Security benefits. Federal employees: FECA compensation is not taxable, but continuation of pay (up to 45 days) and sick leave pay while a claim is decided are taxed as wages.
Does workers' comp affect Social Security disability?
If you get Social Security disability benefits and workers' compensation at the same time, Social Security may reduce its benefit. The reduction applies when your Social Security benefits (including benefits paid to your family on your record) plus your workers' compensation are more than 80% of your 'average current earnings', or more than your family's Social Security benefit before the reduction, if that is higher. A lump-sum workers' compensation settlement can also be counted. The reduction stops when you reach full retirement age. It does not apply when the state law paying your workers' compensation reduces that benefit instead for people on Social Security, if that state rule was in place on February 18, 1981.
Free help
Free legal aid, your state workers' compensation agency and LawHelp.org can explain your options.