If a Tennessee employee is hurt on the job between July 1, 2026, and June 30, 2027, the most workers’ compensation can pay in weekly temporary benefits is $1,488.30, according to the Tennessee Bureau of Workers’ Compensation. The permanent-benefit maximum is $1,353.00 a week, and the minimum weekly benefit for both is $202.95.
Those caps rise every July 1 because they are tied to the state average weekly wage. The Bureau’s rate table lists that wage at $1,353 for the current period. Temporary benefits are capped at 110% of it and permanent benefits at 100%.
The new caps next to last year’s
| Item | Injuries 7/1/25 – 6/30/26 | Injuries 7/1/26 – 6/30/27 |
|---|---|---|
| Minimum weekly rate | $194.55 | $202.95 |
| Benefit percentage | 66.67% | 66.67% |
| State average weekly wage | $1,297 | $1,353 |
| Maximum weekly temporary benefit | $1,426.70 | $1,488.30 |
| Maximum weekly permanent benefit | $1,297.00 | $1,353.00 |
| Body as a whole | 450 weeks | 450 weeks |
| Maximum total benefit | $583,650 | $608,850 |
The benefit percentage, 66.67%, means a worker generally receives two-thirds of their average weekly wage, subject to the minimum and maximum above. Higher-wage employees hit the cap sooner.
2026 workers’ comp laws in plain English
The Bureau’s July 10, 2026 overview of workers’ comp legislation from the 2026 session of the 114th General Assembly lists several changes employers should know:
- Public Chapter 705 (Bureau administration bill). Authorizes the Bureau to use the Subsequent Injury and Vocational Recovery Fund to build and maintain a modernized technology system. Signed April 14, 2026; effective July 1, 2026.
- Public Chapter 845 (attorney fees). For injuries from July 1, 2026, through June 30, 2030, the Court of Workers’ Compensation Claims may award attorney fees and court costs at an expedited hearing if an employer unreasonably denies a claim or delays benefits. Signed April 27, 2026; effective July 1, 2026.
- Public Chapter 950 (kratom). For workers’ comp purposes, kratom is classified as a regulated substance, extending workplace drug-testing policies to include it. Signed May 7, 2026; effective July 1, 2026.
- Public Chapter 721 (emergency responders). An estate’s filing deadline now runs three years from an official determination that a line-of-duty death was work-related, rather than three years from the date of death. Signed April 13, 2026; effective July 1, 2026.
- Public Chapter 600 (arson investigators). Adds arson investigators to the firefighter cancer presumption. Signed March 18, 2026; effective upon signing.
- Public Chapter 942 (municipal linemen). Provides a $250,000 annuity, paid over five years, to estates of municipal or local government electrical linemen killed on the job. Signed May 7, 2026; effective July 1, 2026.
And the premium side moved too
Separately, TDCI approved the National Council on Compensation Insurance’s request to raise Tennessee loss costs and assigned risk rates by 4.8%, effective Oct. 1, 2026. Your actual premium also depends on your carrier, class codes, payroll, and experience mod. We covered that filing in Tennessee approved a 4.8% workers' compensation rate increase effective October 1, 2026..
What Tennessee employers should review
- Claim handling. With fee-shifting now possible on unreasonable denials or delays, make sure supervisors report injuries promptly and your carrier has what it needs to decide quickly.
- Drug-free workplace policy. If you test, update the written policy for kratom.
- Payroll at audit. Higher wages and higher caps can change how claims develop. Keep payroll estimates current.
- Proof of coverage. See TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.. If you have trouble finding a carrier, read TDCI explains how Tennessee employers buy workers’ comp and reach the residual market..
Medical costs are a separate track. For the fee schedule change, see Tennessee’s Workers Comp Medical Fee Schedule Reset April 1 — 31 Days After the 2% Loss-Cost Cut.
Related reading from All Seasons
- Tennessee approved a 4.8% workers' compensation rate increase effective October 1, 2026.
- TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
- Tennessee’s Workers Comp Medical Fee Schedule Reset April 1 — 31 Days After the 2% Loss-Cost Cut
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
What is Tennessee’s maximum weekly workers’ comp benefit for 2026-27 injuries?
For injuries from July 1, 2026, through June 30, 2027, the Bureau lists $1,488.30 for temporary benefits and $1,353.00 for permanent benefits.
What is the minimum weekly benefit?
$202.95 for both temporary and permanent benefits for injuries in that period.
Why do the caps change every July 1?
They are tied to the state average weekly wage, which the Bureau lists at $1,353 for the current period.
What changed about attorney fees?
Under Public Chapter 845, for injuries from July 1, 2026, through June 30, 2030, the court may award attorney fees and costs at an expedited hearing if an employer unreasonably denies a claim or delays benefits.
Does kratom affect workplace drug testing?
The Bureau says Public Chapter 950 classifies kratom as a regulated substance for workers’ comp purposes, extending drug-testing policies to include it.
Did workers’ comp premiums change this fall?
TDCI approved a 4.8% increase in loss costs and assigned risk rates effective Oct. 1, 2026. Individual premiums still depend on carrier, class, payroll, and experience.
Where can I read the full law changes?
The Bureau’s 2026 legislative summary links to the General Assembly site for full bill text.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
