Yes. Unemployment benefits are treated as ordinary income by the federal government. And as of 2022, only 5 states that levy an income tax exempt unemployment from state income taxation (California, New Jersey, Oregon, Pennsylvania, and Virginia). In addition, 9 states do not have an income tax at all, and so they do not tax unemployment at the state level either (Alaska, Florida, New Hampshire, Nevada, South Dakota, Texas, Washington, and Wyoming).