How Workers' Comp Benefits Are Calculated
Workers' compensation replaces part of your paycheck when a job injury keeps you from working. Most states pay 66.67% of your average weekly wage, capped at a state maximum. That cap is the number most injured workers don't know — and it matters more than anything else on your weekly check.
Your average weekly wage (AWW) drives the entire calculation. AWW is your total gross earnings in the 52 weeks before the injury, divided by 52. That includes overtime, bonuses, shift differentials, and money from any second job you held at the time of the injury. Insurance carriers frequently calculate AWW using base hourly wages only. That shortcut can cut your check by 15 to 30 percent — every week, for the life of your claim.
Run the numbers before you accept anything. That is what this calculator is for.
The Four Types of Workers' Comp Benefits
Understanding which benefit type applies to your situation changes how much money you receive and for how long.
Temporary Total Disability (TTD) pays weekly benefits when you cannot work at all while recovering. Most states pay 66.67% of your AWW, subject to the state cap. TTD stops when you return to work, reach Maximum Medical Improvement (MMI), or hit your state's maximum duration limit.
Temporary Partial Disability (TPD) applies when you return to light duty at reduced hours or pay. Most states pay two-thirds of the difference between your pre-injury wage and your current reduced earnings.
Permanent Partial Disability (PPD) pays a lump sum or additional weekly benefits after you reach MMI with lasting impairment. The amount depends on your impairment rating, the affected body part, and your state's scheduled-loss formula. A 20% impairment rating to the arm in most states produces 62.4 weeks of benefits. A 20% rating to the whole person produces 100 weeks.
Permanent Total Disability (PTD) applies when your injuries prevent you from returning to any work, ever. PTD often pays lifetime benefits at your TTD rate.
Use the TTD Calculator for temporary benefits. Use the PPD Calculator for permanent impairment awards. Use the Settlement Calculator to see the lump-sum value of your full claim.
Why State Maximums Vary So Dramatically
Georgia caps weekly TTD at $675. Missouri caps at $2,350. Illinois caps at $2,008. Connecticut pays 75% of AWW up to $1,897. Michigan pays 80% of after-tax wages. The same injury and the same wage produce wildly different weekly checks depending solely on where you work.
State caps are typically set as a percentage of the State Average Weekly Wage (SAWW) and updated annually. Some states update every January 1. Others update mid-year. The rates hardcoded into this calculator reflect each state's current 2026 maximums.
See the full 2026 Weekly Benefit Rates table for all 50 states plus DC.
When to Get an Attorney
Workers' comp attorneys work on contingency. You pay nothing unless they win. Attorney fees are typically 15 to 20% of the settlement and come out of the recovery — not your pocket.
Studies by multiple state workers' compensation boards show that injured workers who hire attorneys receive settlements 30 to 40% higher than those who settle unrepresented. The gap is largest on claims involving surgery, permanent impairment, or a disputed AWW calculation.
You do not need an attorney to use this calculator. But if our number is higher than what the insurance carrier is paying you — take that discrepancy to a free attorney consultation before you assume the carrier is right.
What This Calculator Does Not Cover
This calculator estimates benefits based on the formula your state uses for standard TTD and PPD claims. It does not calculate:
- Vocational rehabilitation or retraining benefits
- Death benefits for surviving family members
- Penalties for late or denied payments (which vary significantly by state)
- Medicare Set-Aside amounts for large settlements
- Benefits under employer self-insurance programs, which may use different rates
If any of those apply to your situation, talk to a workers' comp attorney. Consultations are free.
Workers' Comp Calculators by State
Pick your state for benefit caps, weekly rate, and a state-specific calculator.
Workers' Comp Calculator FAQ
How do I calculate my workers' comp weekly benefit?+
Multiply your average weekly wage by your state's benefit rate — usually 66.67% — then check whether the result exceeds your state's weekly maximum. If your AWW times 66.67% is $1,200 and your state cap is $900, your weekly benefit is $900. If it comes in under the cap, you receive the full 66.67%. For example, an AWW of $800 produces a weekly benefit of $534 in most states. Your AWW is your total gross earnings in the 52 weeks before the injury, divided by 52, and it must include overtime, bonuses, and second-job income.
Are workers' comp benefits taxable?+
No. Workers' compensation benefits are exempt from federal income tax under Section 104 of the Internal Revenue Code. They are also exempt from state income tax in all 50 states. You do not report workers' comp payments as income on your tax return. The only exception involves situations where workers' comp is coordinated with Social Security Disability — the workers' comp offset can reduce your SSDI benefit, which may have indirect tax implications if your SSDI is taxable.
How long does workers' comp pay benefits?+
TTD benefits continue until you return to work, are released to return to work by your treating physician, or reach Maximum Medical Improvement. Most states also set a maximum duration — California limits TTD to 104 weeks within 5 years of injury. PPD benefits pay for a fixed number of weeks determined by your impairment rating and body part. PTD benefits can be lifetime in many states.
What is Maximum Medical Improvement (MMI)?+
Maximum Medical Improvement is the point at which your treating physician determines that your condition has stabilized and further medical treatment is unlikely to produce significant improvement. MMI does not mean you are fully healed — it means your condition has reached a plateau. Once you reach MMI, your doctor assigns a permanent impairment rating, which determines your PPD award. TTD benefits stop at MMI. PPD benefits begin.
What is an average weekly wage and why does it matter?+
Your average weekly wage is the foundation of every workers' comp calculation. AWW is calculated by adding all earnings in the 52 weeks before your injury — including overtime, bonuses, commissions, and second-job income — and dividing by 52. Your weekly TTD benefit equals AWW times your state's benefit rate. If the insurance carrier calculates AWW using only your base hourly rate and ignores your regular overtime, your benefit could be 20 to 30% lower than it should be.
Can I work while receiving workers' comp?+
You can work in a light-duty or modified capacity while receiving Temporary Partial Disability benefits. TPD pays two-thirds of the difference between your pre-injury earnings and your current reduced earnings. Working without disclosing it to the carrier while receiving TTD benefits is fraud. If you are earning any wages, report them to your claims adjuster.
What is the difference between workers' comp and a personal injury lawsuit?+
Workers' compensation is a no-fault system. You do not have to prove your employer was negligent to receive benefits — only that the injury happened at work. In exchange, workers' comp is typically your exclusive remedy against your employer, meaning you cannot sue your employer in civil court for the same injury. Personal injury lawsuits against third parties — equipment manufacturers, contractors, or other non-employer parties — are still possible alongside a workers' comp claim and often produce significantly larger recoveries.