Workers comp rates and rules in Texas
Texas has 3 workers comp class codes with filed rates, a maximum weekly benefit of $1,234 (70% of average weekly wage), and a statute of limitations of 1 year. Verified 2026-05-08.
Class code rate comparison
The top 2 workers comp class codes filed in Texas, sorted from cheapest to most expensive per $100 of payroll. Cross-state percentile shows where each code sits versus the same code in other states.
Texas coverage rules & benefits
Coverage threshold
Workers' compensation coverage is generally optional for private employers in Texas.
Max weekly benefit
$1,234 (70% of average weekly wage), effective 2024.
TTD weeks
104 weeks of temporary total disability benefits.
Death benefit
Up to $443,524 in fatal-claim death benefits to dependents.
Statute of limitations
1 year from injury date to file the claim.
1099 contractor treatment
Texas uses the common law test to determine if a 1099 contractor is an employee; if found to be an employee, they must be covered by a subscribing employer.
Owner exclusion
Allowed. Sole proprietor self-coverage: optional. LLC member self-coverage: optional.
State fund
Texas Mutual Insurance Company is the state-administered carrier.
Estimate your premium in Texas
Pre-filled to Texas. Pick your industry and payroll to see a real premium range from filed rates.
Estimate your workers comp premium
Pick your industry, state, and annual payroll. Range comes from real rate filings.
Filing & compliance in Texas
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Step 1, Confirm coverage threshold
Workers' compensation coverage is generally optional for private employers in Texas.
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Step 2, Determine class code
Your premium uses the NCCI class code that best matches your operation. The wrong class code can cost 4-10x more or get reclassified at audit.
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Step 3, Get a quote (or use the state fund)
Texas Mutual Insurance Company is one option; private carriers like Travelers, Hartford, and Liberty Mutual also write coverage in Texas. Schedule credits up to 25% are typical for low-loss accounts.
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Step 4, Track payroll & subcontractors
If a general contractor is a subscriber, they can be held liable for injuries to employees of an uninsured subcontractor if the subcontractor is performing work that is part of the general contractor's usual trade or business. Keep certificates of insurance for every sub.
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Step 5, Annual audit
Carriers audit payroll within 90 days of policy expiration. Have payroll segregated by class code, job descriptions on file, and overtime properly excluded from rated payroll.
Texas workers comp FAQs
Who has to carry workers compensation insurance in Texas?
Workers' compensation coverage is generally optional for private employers in Texas.
What is the maximum weekly workers comp benefit in Texas?
The current maximum weekly benefit in Texas is $1,234 (effective 2024). Benefits are typically 70% of the average weekly wage, capped at the state maximum.
How long do I have to file a workers comp claim in Texas?
The statute of limitations for filing a workers compensation claim in Texas is 1 year from the date of injury. Notice to the employer is typically required within 30 days.
Are 1099 contractors covered by workers comp in Texas?
Texas uses the common law test to determine if a 1099 contractor is an employee; if found to be an employee, they must be covered by a subscribing employer.
Can business owners exclude themselves from workers comp coverage in Texas?
Yes, Texas allows business owners (sole proprietors, partners, LLC members, corporate officers) to exclude themselves from coverage by filing the appropriate election form. Sole-proprietor self-coverage is not required; LLC member self-coverage is not required.
What is the penalty for not carrying workers comp in Texas?
Must report to the state that they do not have coverage. Must also report to DWC any work-related injuries resulting in more than one day of lost time, as well as all work-related illnesses, and deaths.
When does my workers comp carrier audit my payroll in Texas?
Texas typically requires a payroll audit within 90 days of policy expiration. Final premium is reconciled to actual payroll, and class code allocation can shift based on the audit findings. Keep payroll segregated by class code and have job-duty documentation ready.
Am I liable for subcontractors' workers comp in Texas?
If a general contractor is a subscriber, they can be held liable for injuries to employees of an uninsured subcontractor if the subcontractor is performing work that is part of the general contractor's usual trade or business.