The United States has no disability employment levy
Several countries charge employers a levy when they employ fewer workers with disabilities than a statutory quota. The United States does not. There is no federal quota and no payment an employer makes for falling short. Instead the Americans with Disabilities Act forbids discrimination and requires reasonable accommodation, and federal contractors work toward an aspirational utilization goal. This tool therefore reports your utilization rate and the tax incentives available, not a levy.
What the 7 percent figure actually is. Under Section 503 of the Rehabilitation Act, as implemented at 41 C.F.R. §60-741.45, federal contractors and subcontractors apply a 7 percent utilization goal for individuals with disabilities in each job group. Missing the goal is not a violation and triggers no fine; it obliges the contractor to review its outreach and recruitment. Employers who are not federal contractors have no such goal at all.
Tax incentives instead of penalties. Two federal provisions reward accessibility spending. The Disabled Access Credit at 26 U.S.C. §44 gives eligible small businesses a credit of 50 percent of access expenditures above $250 and up to $10,250, a maximum credit of $5,000 per year. The barrier removal deduction at 26 U.S.C. §190 allows up to $15,000 a year in deductible expenses for removing architectural and transportation barriers. Figures are current as of September 2026.
This tool produces an estimate and does not determine whether your expenditures qualify or whether your business meets the small business test for the credit. Compliance obligations under the ADA, Section 503 and state fair employment laws are fact-specific. This calculator is for reference only and is not legal or tax advice. Consult a licensed attorney or CPA about your specific situation.
Frequently Asked Questions
No. The Section 503 utilization goal is aspirational. Falling below it requires a federal contractor to review its outreach efforts, but it is not itself a violation and carries no levy.
Only eligible small businesses, measured by prior-year gross receipts or full-time headcount under 26 U.S.C. §44. Larger employers may still use the §190 barrier removal deduction.