Cheapest Wave Payroll plan in 2026
Wave Payroll has two price points depending on your state. Tax-service states (14 of them) are $40 base plus $6 per employee with full filing included. Self-service states (the rest) are $20 base plus $6 per employee, and you file federal and state taxes yourself. The cheapest answer depends entirely on which list your state is on.
Wave Payroll true monthly cost by state tier
Source: Wave Payroll pricing page as of April 2026.
| Employees | Tax-service / mo | Self-service / mo | Difference |
|---|---|---|---|
| 1 | $46 | $26 | $20 |
| 3 | $58 | $38 | $20 |
| 5 | $70 | $50 | $20 |
| 10 | $100 | $80 | $20 |
| 15 | $130 | $110 | $20 |
Wave Payroll tax-service states (April 2026)
The Wave Payroll tax-service tier is available in exactly 14 states: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. The list has been stable since 2023, with no new states added in the most recent two years.
If your business is in any of the 14, you can buy Wave Payroll at $40 + $6 per employee and have Wave file federal 941, federal 940, state unemployment, and state income withholding on your behalf. This is the genuinely competitive Wave tier and where Wave wins cheapest-payroll comparisons.
If your business is in any of the other 36 states (plus DC), the tax-service tier is not available. You can still buy Wave Payroll at $20 + $6 per employee, but you are buying the self-service tier, and the filing is your responsibility. This changes the math entirely.
The honest version of the $20 sticker
Wave's self-service tier calculates the taxes owed for each payroll run and tells you the exact amount and the agency to pay. It generates the underlying tax forms. What it does not do is file the forms or send the payments.
For federal taxes, you log into the IRS Electronic Federal Tax Payment System and make the payment. You file Form 941 quarterly. You file Form 940 annually. You issue W-2s in January. None of those steps are difficult individually, but they all have deadlines, and missed deadlines trigger penalties.
For state taxes, you log into the state Department of Revenue and Department of Labor websites and file unemployment and income withholding. The procedure varies by state. Some states require quarterly filings, some monthly, some semi-monthly above a certain dollar threshold.
The self-service tier is appropriate for solo owners with one or two employees, no multi-state complexity, and enough comfort with tax compliance to handle quarterly filings on time. It is not appropriate for businesses with no finance background or for any roster where missing a deadline would be expensive.
The cohort Wave is genuinely the cheapest answer for
Solo founder paying themselves a reasonable S-corp salary in California, Texas, Florida, or any other tax-service state, already using Wave Accounting for bookkeeping. Total cost is $46 per month for tax-service Wave Payroll plus $0 for Wave Accounting. The bundle is cheaper than any combination of Patriot Full Service + Xero or Gusto Simple + Wave Accounting.
Two- or three-person LLC in a tax-service state with no multi-state complexity and no time-tracking needs. Wave Payroll at $58 to $70 per month with Wave Accounting bundled in is the cheapest done-for-you-tax option that includes an accounting tool. Patriot Full Service is $49 to $57 for payroll alone but you still need accounting.
Solo owner in a self-service state who is confident filing federal and state taxes. Wave Payroll at $26 per month for one employee is the cheapest legitimate payroll plan in the US market when self-service tax filing is acceptable. Patriot Basic at $21 is slightly cheaper but does not include the accounting bundle.
When the price is not enough to make Wave the right choice
Multi-state payroll. Wave Payroll's tax-service tier is single-state. Multi-state on self-service is technically possible but means filing in multiple states yourself, which negates the cheap-and-easy positioning. OnPay at $40 + $6 with multi-state included is the cheaper safe path for multi-state SMBs.
Hourly workforces. Wave does not include time tracking. For restaurants, retail, and other hourly teams, Square Payroll at $35 + $6 with Square Team time tracking included is cheaper than Wave plus a separate time tracker.
Growing teams. Wave's pricing is competitive up to about 10 employees. Beyond that, the $6 per employee per month adds up faster than Patriot Full Service at $4 per employee. At 25 employees, Patriot is meaningfully cheaper than Wave even in tax-service states.
Other cheapest-vendor breakdowns
Cheapest Patriot plan
Basic at $17 + the $30 tax add math
Cheapest OnPay plan
Flat $40 + $6, multi-state included
Cheapest Gusto plan
Simple at $40 + $6, multi-state trap
Cheapest Square Payroll plan
$35 + $6, time tracking included
Cheapest payroll for S-corp owner
Solo owner reasonable comp path
Free payroll software honest review
Wave free, Payroll4Free, DIY, all stress-tested
Common questions
How much does Wave Payroll cost?
Wave Payroll is $40 per month base plus $6 per employee in 14 tax-service states, or $20 per month base plus $6 per employee in the rest. The pricing difference is the tax filing service. Tax-service states get Wave to file federal and state taxes for them; self-service states do it themselves.
Which states are Wave Payroll tax-service states?
As of April 2026 the 14 Wave Payroll tax-service states are Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. The list has not changed in two years. Verify on Wave's pricing page before relying on it.
How much does Wave Payroll cost for 5 employees?
Wave Payroll at 5 employees is $40 + (5 x $6) = $70 per month in tax-service states, or $20 + (5 x $6) = $50 per month in self-service states. Both prices include direct deposit and the Wave Accounting integration.
Is Wave Payroll really $20 a month?
Only in self-service states, and only if you are willing to file federal 941, federal 940, state unemployment, and state income withholding yourself. For a solo owner with one or two employees in a non-tax-service state who is comfortable filing taxes, yes, $20 + $6 per employee is the real price. Outside that profile, the $40 tax-service price applies.
Does Wave Payroll include year-end W-2 filing?
Wave includes W-2 distribution to employees on both tiers, with filing to the SSA on the tax-service tier. On the self-service tier, the W-2 is generated for you but the SSA filing is your responsibility. Year-end 1099-NEC filing follows the same split.
When is Wave Payroll the cheapest option?
Wave is the cheapest legitimate payroll for solo owners or two-employee businesses in any of the 14 tax-service states, especially if you already use Wave Accounting (free) for bookkeeping. In self-service states it ties with Patriot Basic but adds the Wave Accounting bundle as the differentiator.