How much does workers' comp pay? The short answer, then the honest one
In most states, workers' comp pays two-thirds of your average weekly wage while you can't work, and that money is generally not taxed. Earn $900 a week and a two-thirds state pays about $600 — untaxed, and with no commute to fund, closer to your old take-home than it sounds.
Now the honest version. The percentage isn't two-thirds everywhere — Michigan pays 80% of after-tax wage, Texas and New Jersey 70%, Massachusetts 60% for total incapacity, Washington 60% to 75% by number of children. More important: every state caps the weekly check at a fixed dollar maximum. Above that line the percentage stops describing anything, and your real replacement rate falls with every dollar you earn.
A New Jersey worker averaging $2,000 a week reads "70%" and expects $1,400. The 2026 maximum there is $1,199 — a real replacement rate of 59.95%. Nobody sends a letter explaining that. The cap section works it through.
Build your own number: the five-line worksheet
Five lines, in order. Each is a fact you can look up, and each is a place checks go wrong.
Do I have the five inputs?
0 of 5 complete
Line 1: how your average weekly wage is really built
Your average weekly wage is the base of every benefit in the claim — the check now, the partial check on light duty, the permanent award later. Get it wrong and everything after is wrong with it.
The lookback window isn't standard. North Carolina, New York and Illinois use 52 weeks; Florida and Texas use 13, so one quarter dominates. New York annualizes: average daily wage × 260 for a five-day worker, × 300 for six-day, ÷ 52. Washington uses your wage at the time of injury; Arizona a monthly wage. Michigan does the most worker-favorable thing in the country — highest-paid 39 of the last 52 weeks, divided by 39, discarding your thirteen worst.
Concurrent employment is the biggest under-known rule here. If you worked two jobs and the injury stopped both, some states combine it all into one wage. Verified in Washington (wages "from all employment"), Texas, Michigan, New York, Illinois and Florida, which penalizes silence: fail to disclose second-job earnings and you lose interest, penalties and attorney's fees for that period. Elsewhere, ask your agency — we won't assert what isn't verified.
Some fringe benefits belong inside the wage. Washington is broadest — board, housing, fuel, employer payments for health care benefits (unless coverage stays in force), reported tips, contract bonuses — while generally excluding overtime. Michigan adds discontinued fringes such as health insurance and pension contributions. North Carolina counts "allowances of any character made in lieu of wages." Florida deducts employer-provided housing instead.
Every wage statute reviewed here has a comparable-worker fallback. North Carolina uses "a person of the same grade and character employed in the same class of employment in the same locality." Texas uses the "prevailing wage in the same or similar employment in the locality." New York uses a comparable employee, with a floor of 200 times the average daily wage. No stubs does not mean no benefits. Ask the insurer in writing for the weeks it used and the gross for each, then check it in the Wage-Loss Calculator.
Line 2: the percentage — and the five states where two-thirds is wrong
Two-thirds is the dominant rule for temporary total disability, paid when you can't work at all. The exceptions aren't obscure states.
| State | What it actually pays | What that means |
|---|---|---|
| Michigan | 80% of after-tax average weekly wage | A bigger percentage of a smaller base — nearer two-thirds of gross than "80%" sounds. |
| Texas | 70% of lost wage; 75% for the first 26 weeks if you earned under $10 an hour | A deliberate boost for the lowest-paid workers. |
| New Jersey | 70% | Highest flat percentage here — and the biggest gap between stated and delivered. |
| Washington | 60% to 75%, on a ladder keyed to your number of children | 0 children 60%, 1 child 65%, 2 67%, 3 69%, 4 71%, 5 73%, 6 or more 75%. |
| Massachusetts | 60% for total incapacity | Lowest headline percentage, one of the highest maximums. |
Washington's ladder changed this year. Effective July 1, 2026 it keys only to the number of children; the old one split workers by marital status and capped unmarried workers at 70%. Unmarried workers with dependents just got a raise.
Pennsylvania does something stranger, and it favors the worker. Instead of one percentage it sorts you into four bands by wage, and the middle band pays a flat amount that beats two-thirds.
A Pennsylvania worker averaging $900 gets a flat $697.00. Two-thirds of $900 is $600.00, so the flat tier pays $97 a week more — 77.4% replacement instead of 66.7%. A worker at $1,046.00, just above the band, gets 66 2/3% = $697.33: the same dollars off a higher wage. One caution: Pennsylvania grants no cost-of-living increase once benefits begin.
Line 3: the cap, where the stated percentage becomes a fiction
Your state's percentage applies only until the check hits the state maximum. Above that wage it describes nothing.
Take New Jersey, which pays 70%. A worker with a $2,000 average weekly wage does the obvious math: 70% × $2,000 = $1,400. The 2026 New Jersey maximum is $1,199, so the check is $1,199. Divide that by the wage it is meant to replace:
$1,199 ÷ $2,000 = 0.5995 — a real replacement rate of 59.95%.
The cut is $201 every week — $5,226 over six months. Nobody made an error; the system is working as written.
Every state has this line, and one division finds yours. Divide the maximum by the percentage — the result is the wage where the cap starts cutting.
| State | 2026 maximum ÷ percentage | Cap starts cutting above |
|---|---|---|
| Georgia | $800.00 ÷ 66 2/3% | $1,200.00 — about $62,400 a year |
| Indiana | $878.00 ÷ 66 2/3% | $1,317.00 |
| New Jersey | $1,199.00 ÷ 70% | $1,712.86 |
| New York | $1,281.50 ÷ 66 2/3% | $1,922.25 |
| Florida | $1,358.00 ÷ 66 2/3% | $2,037.00 |
| North Carolina | $1,446.00 ÷ 66 2/3% | $2,169.00 |
Georgia deserves its own paragraph. Its $800 maximum has not moved since July 1, 2023 — no automatic index ties it to the state average weekly wage, so it erodes every year. A Georgia worker earning roughly $62,400 is already capped. Partial disability is capped lower still, at $533; the light-duty rules cover those checks.
Maximums generally attach to the date of injury, not the date the check is written. If you were hurt in 2024, a 2026 maximum is the wrong yardstick.
The 2026 maximum weekly rate table
Percentages and maximums as published by the state agencies. Where a cell is blank we could not verify the figure against the agency's own page, so the footnote gives the mechanism instead — on a page about money, an invented figure is the worst possible error.
| State | Rate for total disability | 2026 maximum | 2026 minimum |
|---|---|---|---|
| Arizona | 66 2/3% of average monthly wage | $6,131.00 monthly wage cap | — |
| California | 66 2/3% | $1,764.11 | $264.61 |
| Colorado | 66 2/3% | $1,464.12 | — |
| Florida | 66 2/3% | $1,358.00 | — |
| Georgia | 66 2/3% | $800.00 (partial $533.00) | — |
| Illinois | 66 2/3% | $2,045.63 | $400.00 |
| Indiana | 66 2/3% | $878.00 | $75.00 |
| Massachusetts | 60% total incapacity | $1,922.48 | $384.50 |
| Michigan | 80% of after-tax wage | $1,201.00 | — |
| Missouri | 66 2/3% | $1,294.71 temporary; $678.18 permanent partial | — |
| New Jersey | 70% | $1,199.00 | $320.00 |
| New York | 66 2/3% | $1,281.50 | $384.45 |
| North Carolina | 66 2/3% | $1,446.00 | — |
| Ohio | 72% of full weekly wage for 12 weeks, then 66 2/3% | $1,281.00 | $427.00 |
| Pennsylvania | Tiered — see the four bands above | $1,394.00 | — |
| Tennessee | 66 2/3% | $1,488.30 temporary; $1,353.00 permanent | $202.95 |
| Texas | 70% of lost wage; 75% for the first 26 weeks under $10/hr | $1,271.00 | $191.00 |
| Virginia | 66 2/3% | $1,507.01 | $376.75 |
| Washington | 60%–75% by number of children | $9,981.00 per month | — |
Every number here has an expiration date. Verified August 2026 against the publishing agencies. Figures are weekly unless the cell says otherwise — Arizona and Washington publish monthly ceilings, not weekly ones. Adjustment dates are staggered — January 1 for Arizona, Florida, Michigan, New Jersey, North Carolina, Ohio and Pennsylvania; July 1 for Colorado, Indiana, Missouri, New York, Tennessee, Virginia and Washington; October 1 for Massachusetts and Texas; twice yearly for Illinois. Massachusetts figures run only through September 30, 2026; Georgia's $800 dates from July 1, 2023, unchanged as published. Reading this months after your state's date? Re-check with the agency, and see the state comparison tool or the state guides. Four states work differently enough to need a sentence each. Arizona caps the wage rather than the benefit: $6,131.00 a month is the most the formula will look at for injuries dated in 2026, so 66 2/3% of it — $4,087.33 a month — is the real ceiling on a check. Washington pays monthly too; its $9,981.00 is 120% of the state average wage, for injuries on or after July 1, 2026. Colorado's $1,464.12 is 91% of a $1,608.91 state average weekly wage, covers temporary total, temporary partial, permanent total and death benefits alike, and runs through June 30, 2027 — you need to have earned $2,196.18 a week to reach it. Ohio's $1,281.00 is the statewide average weekly wage, and its $427.00 minimum is a third of that, both for calendar year 2026. Colorado and Washington set no minimum for total disability, so those cells are empty rather than unknown. Two Texas notes: the $1,271.00 ceiling covers temporary income benefits, lifetime benefits and death benefits, but impairment and supplemental income benefits are capped separately at $890.00 — and Texas runs its year from 1 October, so this figure holds through 30 September 2026. Illinois moves twice a year, on 15 January and 15 July; the figures here are the 15 July 2026 rates, and its minimum rises with dependents from $400.00 to $600.00 at four or more. Arizona indexes its ceiling to the BLS employment cost index; Colorado, Ohio and Washington all key theirs to a state average wage.
Line 4: the waiting period and the retroactive cliff
Almost every state makes you wait before wage benefits start; medical treatment isn't subject to the wait. Most then repay that first stretch if your disability lasts long enough, and that rule is where the money is. The retroactive trigger has nothing to do with the length of the wait, and it is a cliff rather than a slope.
| State | Waiting period | First week paid back if out |
|---|---|---|
| Arizona | 7 days | Past 14 days — paid from injury date |
| Colorado | 3 shifts | More than 2 weeks |
| Florida | 7 days | More than 21 days |
| Georgia | 7 days | More than 21 consecutive days |
| Illinois | 3 lost workdays | 14+ calendar days |
| Indiana | 7 calendar days | Longer than 21 days |
| Massachusetts | 5 calendar days | 21+ days — paid from onset |
| Michigan | 7 days | 2 weeks or longer |
| Missouri | 3 days | More than 14 days |
| New Jersey | 7 days | Beyond 7 days — paid at once |
| New York | 7 days | More than 14 days |
| North Carolina | 7 days | More than 21 days |
| Ohio | 7 days | A continuous 2 weeks |
| Pennsylvania | 7 calendar days (pay starts day 8) | Off 14 days — first 7 paid |
| Tennessee | 7 days (excluding injury day) | Disability lasts 14 days |
| Texas | 1 week (accrues from day 8) | 2 weeks or longer |
| Virginia | 7 calendar days | More than 3 weeks |
| Washington | 3 days | Unable to work on day 14 |
Read the columns against each other and the disconnect jumps out. Indiana makes you wait 7 days then requires 21 before repaying them. New Jersey makes you wait 7 and repays at day 8. Same wait, opposite rule.
The cliff matters because the date gets set casually — whether you were "out of work" on a given day generally comes from your doctor's work-status note. A North Carolina worker with a $1,050 wage and a $700 rate released on day 20 loses that first week permanently; released on day 22, the same worker receives it. That is emphatically not a reason to stay out longer than your doctor thinks you should. It is a reason to know your state's number, and to speak up if a note records a release that never happened.
Workers are told the waiting period is unpaid, full stop, and never hear about the retroactive rule. If you were out past your state's trigger and the first week never arrived, that is a claim for back benefits — check the payment history, then ask in writing. The deadline checker helps place the dates.
Line 5: which benefit you're actually being paid
"Two-thirds" describes one benefit out of four. Which one you're on sets the formula and the cap.
| Benefit | When it applies | How it's calculated |
|---|---|---|
| Temporary total — TTD | Can't work at all, before maximum medical improvement | Your state's percentage of the average weekly wage, up to the maximum. |
| Temporary partial — TPD | Back at work but earning less | A percentage of the difference between your old wage and current earnings. Georgia caps it lower, $533 against $800, for up to 350 weeks. |
| Permanent partial — PPD | After maximum medical improvement, impaired but still able to work | A scheduled award (weeks per body part × impairment % × rate), whole-person impairment × weeks, or wage loss. |
| Permanent total — PTD | Can't return to any gainful employment | Generally the TTD rate, running far longer. |
The scheduled award, worked through. A Georgia worker with a $900 wage is rated at 20% permanent impairment to the hand. Comp rate: 66 2/3% × $900 = $600, under the $800 maximum. Georgia values a hand at 160 weeks; 20% × 160 = 32 weeks; the award is 32 × $600 = $19,200. The rest of the schedule runs the same way — thumb 60 weeks, arm 225, leg 225, eye 150 — with a 400-week limit for non-catastrophic injuries. How the percentage is assigned: the MMI and ratings guide.
Workers assume the maximum they were told about covers every check in the claim. Frequently it doesn't. Missouri's permanent partial maximum is $678.18 against a temporary total maximum of $1,294.71 — roughly half. Tennessee runs $1,353.00 against $1,488.30. When checks change character at maximum medical improvement, ask which cap was applied. What that number becomes in a settlement: the settlement chart.
What workers' comp does not pay
Comp pays medical treatment, a percentage of lost wages, compensation for permanent impairment, and death benefits. Nothing for pain and suffering or punitive damages. That is the trade at the center of the system: benefits without proving fault, in exchange for giving up the right to sue your employer. It is called the exclusive remedy, and it is why your amount is a formula rather than a jury's verdict.
There is a real exception. If someone other than your employer caused the injury — a negligent driver, a defective machine's manufacturer — you may have a separate claim against that third party, and it can include pain and suffering. It runs alongside the comp claim, and the carrier usually holds a lien on what you recover. Third-party claims covers it.
On taxes: under IRS Publication 525, amounts received under a workers' compensation act for occupational sickness or injury are generally exempt from federal income tax. The exception is the portion that reduces Social Security or railroad retirement benefits — see is workers' comp taxable.
Five mistakes that shrink the weekly check
The insurer builds it from what the employer sends, and overtime and bonuses go missing routinely. A $100 error costs about $67 a week, and shrinks the permanent award too.
Nobody adds wages the insurer doesn't know about. In Florida, silence costs interest, penalties and fees.
Rates attach to the date of injury, so a 2026 table is the wrong yardstick for a 2024 injury.
If your time out crossed the trigger, that week is owed — and it doesn't always arrive on its own.
When temporary benefits end and permanent partial begins, the maximum can fall by half. Any drop deserves a written explanation.
Two signs your check needs a second look:
Real wage math rarely lands on $600.00 exactly. A round benefit often means someone estimated from an hourly rate.
If the cap bites above $2,000 and you averaged $1,100, a maximum-rate check means a wrong figure is in the file.
If your wage was straightforward, your checks match the arithmetic here, and the claim was accepted, there may be nothing for a lawyer to add. Wage corrections are often fixed with pay stubs and a polite written request — no fee, no case, no delay. Get advice when the wage is genuinely disputed and the insurer won't move, or when checks stop and nobody will explain why in writing. See do I need a lawyer and the denied-claims guide.
Frequently asked questions
Wage disputes are among the most fixable problems in a claim, and a fix is worth every remaining week of benefits. Bring your pay stubs and the insurer's calculation; consultations are free.
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Terms used here are defined in the glossary. More in getting paid; new to a claim? Start with the first 24 hours guide.