The Wisconsin Department of Workforce Development has released its 2025 Financial Summary of the state’s Unemployment Insurance Trust Fund, reporting a growing balance and lower tax rates for many employers.
As of December 31, 2025, the trust fund balance stood at more than $2.1 billion. The fund, supported by employer-paid state unemployment taxes, serves as a reserve to cover benefit payments during economic downturns and helps the state avoid borrowing from the federal government.
In 2025, Wisconsin operated under Schedule D — the lowest tax rate schedule. Employers pay unemployment insurance taxes on the first $14,000 of each employee’s wages. More than 95 percent of employers had a tax rate below 4 percent, and more than half paid less than 2 percent. Overall, employers saved an estimated $50.5 million in payable taxes last year, with nearly 58 percent seeing their rates decrease or remain unchanged.
Secretary Amy Pechacek says maintaining a strong and solvent trust fund is essential to supporting both employers and workers, adding that the state should continue strengthening the system to ensure reliable benefits in the future.
A more detailed Financial Outlook Report is expected in May.