Is Unemployment Taxable? A State-by-State Guide

The federal government taxes unemployment benefits. But is unemployment taxable in your state? Here's what you need to know.

magnifying glass over keyboard with red unemployment benefits key
(Image credit: Getty Images)

You can’t escape federal income tax on your unemployment benefits. But you may be wondering if unemployment is taxable at the state level. The answer to that depends on where you live. That’s because some states consider these benefits taxable income, while others don’t. 

Where is unemployment taxable?  

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Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.