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What Gusto actually costs in 2026—from an Enrolled Agent who sets up client payroll every week. Updated plan rates, real monthly totals at 1–25 employees, add-ons that show up on invoices, and which tier I recommend after the Simple base jumped to $49 in March.
For features, pros/cons, and our full rating, see our Gusto review. Comparing vendors? Read Gusto vs ADP or our roundup of best payroll software for small business.
March 2026 price increase
Gusto raised the Simple plan base from $40/mo to $49/mo. Per-person rates ($6/$12/$22) did not change. If you are comparing quotes from late 2025, recalculate before you budget.
Gusto pricing plans (May 2026)
All plans include unlimited payroll runs and automatic tax filing at federal, state, and local levels. No long-term contracts—month-to-month billing. Gusto does not offer a traditional timed free trial; your account stays free until you run your first payroll.
Simple
- Full payroll processing
- Single-state tax setup
- Employee self-service
- Auto tax filing included
Plus
- Everything in Simple
- Multi-state payroll
- Next-day pay included
- Time tracking included
Premium
- Everything in Plus
- Dedicated HR advisor
- Priority support
- Advanced compliance tools
Contractor Only
- 1099 contractors only
- No W-2 employees
- 1099 filing included
- Direct deposit to contractors
Gusto Solo (S-corp owners)
If you pay yourself a W-2 salary from an S-corp with no other employees, Gusto Solo starts at $49/mo + $6 for the owner—essentially the Simple plan packaged for one-person S-corps. See our full Gusto review for setup details.
What you'll pay each month
These totals assume one pay schedule, no optional add-ons, and U.S. W-2 employees on Simple or Plus. I run this math for clients before they sign—per-person fees dominate once you pass ~10 employees.
| Team size | Simple | Plus |
|---|---|---|
| 1 employee | $55/mo | $92/mo |
| 5 employees | $79/mo | $140/mo |
| 10 employees | $109/mo | $200/mo |
| 25 employees | $199/mo | $380/mo |
Formula: Simple = $49 + ($6 × headcount). Plus = $80 + ($12 × headcount). Premium = $180 + ($22 × headcount). Contractor Only = $35 + ($6 × contractors), or $0 base for the first six months under the current promo.
At 25 employees, Plus costs nearly double Simple ($380 vs $199). That gap is why I start comparing Gusto vs ADP around the 20–25 employee mark—ADP's per-employee economics can flip.
Optional add-on fees
Many features bundled into Plus are paid add-ons on Simple. These line items show up on Gusto invoices—budget for them if you need the capability.
- Next-day pay: $15/mo + $3/person — Simple only (included on Plus & Premium)
- Time & Attendance: $6/person/mo — Simple only (included on Plus & Premium)
- Priority Support: $30/mo + $3/person — any plan
- HR Resources: $50/mo + $5/person — policy templates, handbook tools
- Wire transfer to Gusto: $5 per wire — if you fund payroll by bank wire instead of ACH
- State tax registration: Varies by state — one-time or recurring fees when registering in new states
Example: a 5-person team on Simple that adds next-day pay and time tracking pays an extra $15 + ($3 × 5) + ($6 × 5) = $60/mo on top of the $79 base—bringing the real total to $139/mo, nearly matching Plus at $140 with more features built in.
Which Gusto plan should you pick?
After implementing Gusto for dozens of small-business clients, these are the tiers I actually steer people toward—not the marketing labels.
Simple — single-state, lean teams
Pick Simple if all W-2 employees work in one state, you do not need built-in time tracking, and standard support is fine. Works well for 1–10 employees in one location. Recalculate after the $49 base increase—Simple is no longer the sub-$50 entry point it was in 2025.
Plus — my default for growing SMBs
Plus is what I recommend for most clients with 5–25 employees, remote workers in multiple states, or anyone who wants next-day pay and time tracking without stacking add-ons. At 5 employees ($140/mo), the math often beats Simple plus à la carte features.
Premium — hands-on HR support
Choose Premium when you want a dedicated HR advisor and priority phone support—common for owners without an in-house HR person who still want compliance guidance. The $180 base plus $22/person adds up; justify it if advisor time replaces outside HR consulting.
Contractor Only — 1099s only
If you have no W-2 employees, Contractor Only at $35/mo + $6/contractor (or $0 base for six months on promo) is the leanest path. Do not put W-2 staff on this plan—you will need to upgrade.
Still deciding between vendors? Our payroll software roundup compares Gusto to OnPay, QuickBooks Payroll, and others on total cost—not just sticker price.
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Gusto pricing FAQ
How much does Gusto cost per employee in 2026?
On the Simple plan, Gusto charges $49/mo base + $6 per W-2 employee. Plus is $80 + $12/person; Premium is $180 + $22/person. Contractor Only is $35 + $6 per 1099 contractor (promo: $0 base for the first six months).
Did Gusto raise prices in 2026?
Yes. Gusto increased the Simple plan base from $40/mo to $49/mo around March 2026. Per-employee rates on Simple, Plus, and Premium did not change at that time.
Is there a Gusto free trial?
Not a traditional 30-day trial. Gusto is free until you run your first payroll—you can set up your account, add employees, and explore the dashboard without paying until payroll actually processes.
Are payroll taxes included in Gusto's price?
Tax filing is included on every plan—Gusto calculates, files, and remits federal, state, and local payroll taxes. You still pay the actual tax amounts owed; Gusto does not charge extra for the filing service itself on standard plans.
What is the cheapest Gusto plan?
For W-2 payroll, Simple at $49/mo + $6/person is the lowest tier. If you only pay 1099 contractors, Contractor Only is cheaper—especially during the six-month $0 base promo. S-corp owners paying themselves may use Gusto Solo from $49/mo + $6.
When should I upgrade from Simple to Plus?
Upgrade when you need multi-state payroll, next-day pay, or time tracking—all included on Plus but paid add-ons on Simple. If you would stack $15 + $3/person for next-day pay and $6/person for time tracking, Plus is usually cheaper and simpler.
How does Gusto pricing compare to ADP?
Gusto is typically more transparent and affordable for teams under ~25 employees. ADP often wins on custom quotes at scale. See our Gusto vs ADP comparison for side-by-side pricing logic.
Disclaimer: Pricing verified May 2026 and may change. Gusto is a trademark of Gusto, Inc. This guide is independent editorial content—not tax or legal advice.
Thomas Camp Jr., EA
Thomas is an Enrolled Agent and tax accountant with over 14 years of experience helping small businesses choose payroll, accounting, and operational tools. His recommendations come from hands-on implementation—not just feature lists. Verify EA credentials →
