Quick Answer: Best States for Freelancers in 2026
The 9 states with zero state income tax — Wyoming, South Dakota, Nevada, Florida, Texas, Washington, Alaska, Tennessee, and New Hampshire — are the best for freelancers. A $75K freelancer in these states takes home roughly $5,000–$7,000 more per year than one in California or Oregon.
🏆 Top 10 Best States for Freelancers (2026)
Estimated take-home for a single filer earning $75,000/year after SE tax + federal income tax + state income tax. Standard deduction assumed.
🧮 Calculate Your Exact Take-Home Pay
Use our free 1099 tax calculator to see exactly what you'd owe in any state. Enter your income, pick your state — instant results.
Open the Free Calculator →⚠️ 5 Worst States for Freelancers (2026)
These states cost a $75K freelancer an extra $4,000–$8,000+ per year vs. no-tax states.
📊 All 50 States: Freelancer Tax Comparison (2026)
Estimated take-home for a single filer earning $75,000/year with standard deduction only.
| State | State Tax Rate | State Tax on $75K | Est. Take-Home | Calculator |
|---|---|---|---|---|
| Wyoming | 0% | $0 | $59,095 | Calculate → |
| South Dakota | 0% | $0 | $59,095 | Calculate → |
| Nevada | 0% | $0 | $59,095 | Calculate → |
| Florida | 0% | $0 | $59,095 | Calculate → |
| Texas | 0% | $0 | $59,095 | Calculate → |
| Washington | 0% | $0 | $59,095 | Calculate → |
| Alaska | 0% | $0 | $59,095 | Calculate → |
| Tennessee | 0% | $0 | $59,095 | Calculate → |
| New Hampshire | 0% | $0 | $59,095 | Calculate → |
| Arizona | 2.5% | $1,877 | $57,218 | Calculate → |
| North Dakota | 2.5% | $1,877 | $57,218 | Calculate → |
| Louisiana | 3% | $2,253 | $56,842 | Calculate → |
| Indiana | 3.15% | $2,366 | $56,729 | Calculate → |
| Pennsylvania | 3.07% | $2,306 | $56,789 | Calculate → |
| Ohio | 4% | $3,004 | $56,091 | Calculate → |
| Michigan | 4.25% | $3,192 | $55,903 | Calculate → |
| Colorado | 4.4% | $3,305 | $55,790 | Calculate → |
| Kentucky | 4.5% | $3,380 | $55,715 | Calculate → |
| Arkansas | 4.7% | $3,530 | $55,565 | Calculate → |
| Oklahoma | 4.75% | $3,568 | $55,527 | Calculate → |
| North Carolina | 4.75% | $3,568 | $55,527 | Calculate → |
| Illinois | 4.95% | $3,718 | $55,377 | Calculate → |
| Missouri | 4.9% | $3,680 | $55,415 | Calculate → |
| Utah | 4.85% | $3,643 | $55,452 | Calculate → |
| Alabama | 5% | $3,755 | $55,340 | Calculate → |
| Massachusetts | 5% | $3,755 | $55,340 | Calculate → |
| Mississippi | 5% | $3,755 | $55,340 | Calculate → |
| Georgia | 5.5% | $4,130 | $54,965 | Calculate → |
| Virginia | 5.75% | $4,318 | $54,777 | Calculate → |
| Maryland | 5.75% | $4,318 | $54,777 | Calculate → |
| Idaho | 5.8% | $4,355 | $54,740 | Calculate → |
| Kansas | 5.7% | $4,280 | $54,815 | Calculate → |
| New Mexico | 5.9% | $4,431 | $54,664 | Calculate → |
| Iowa | 6% | $4,506 | $54,589 | Calculate → |
| Rhode Island | 5.99% | $4,499 | $54,596 | Calculate → |
| New Jersey | 6.37% | $4,783 | $54,312 | Calculate → |
| West Virginia | 6.5% | $4,882 | $54,213 | Calculate → |
| Delaware | 6.6% | $4,957 | $54,138 | Calculate → |
| New York | 6.85% | $5,144 | $53,952 | Calculate → |
| Nebraska | 6.84% | $5,137 | $53,958 | Calculate → |
| Connecticut | 6.99% | $5,250 | $53,845 | Calculate → |
| South Carolina | 7% | $5,257 | $53,838 | Calculate → |
| Maine | 7.15% | $5,370 | $53,725 | Calculate → |
| Wisconsin | 7.65% | $5,745 | $53,350 | Calculate → |
| Montana | 6.9% | $5,181 | $53,914 | Calculate → |
| Vermont | 8.75% | $6,572 | $52,523 | Calculate → |
| Washington D.C. | 8.95% | $6,722 | $52,373 | Calculate → |
| California | 9.3% | $6,986 | $52,109 | Calculate → |
| Minnesota | 9.85% | $7,399 | $51,696 | Calculate → |
| Oregon | 9.9% | $7,436 | $51,659 | Calculate → |
| Hawaii | 11% | $8,261 | $50,834 | Calculate → |
*Single filer, $75K gross, $0 expenses, standard deduction. State tax applied to AGI. Estimates only — not tax advice.
Frequently Asked Questions
Which state is best for freelancers in 2026?
Wyoming, South Dakota, Nevada, Florida, and Texas are consistently the best states for freelancers because they have zero state income tax. A freelancer earning $75,000 keeps roughly $5,000–$7,000 more per year in these states compared to high-tax states like California or Oregon. Wyoming and South Dakota also have low costs of living, making them even more attractive for remote workers who aren't tied to a location.
What is the worst state for freelancers tax-wise?
Hawaii has the worst tax burden at 11% state income tax — the highest top rate in the US. On top of that, Hawaii also charges a 4% General Excise Tax on gross revenue, which hits freelancers before any deductions. California is second-worst at 9.3% state income tax, plus SDI and an $800 LLC franchise tax. A California freelancer earning $75,000 takes home roughly $7,000 less per year than a Texas freelancer.
Do freelancers pay state income tax?
Yes — if you live in a state with an income tax. As a 1099 contractor, state income tax applies to your net self-employment income. Nine states have no state income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you're a fully remote freelancer with location flexibility, these nine states can save you thousands every year.
Is it worth moving to a no-tax state as a freelancer?
At $100K+ income, moving from California to Texas saves roughly $9,000–$13,000 per year in state income taxes alone. At $75K it's about $7,000. However, factor in cost of living, housing costs, local/city taxes, and personal priorities. Texas and Florida have no income tax but higher property taxes. New Hampshire has no income or sales tax but higher property taxes too. Run the full numbers for your specific situation using our 1099 tax calculator.
What else should freelancers consider beyond state income tax?
Beyond state income tax, consider: (1) Local/city taxes — NYC adds up to 3.876% on top of New York State tax; (2) LLC fees — California charges $800/year minimum franchise tax; (3) Sales tax on digital services — some states tax software and digital products; (4) Cost of living — low-tax states often have lower housing costs; (5) Self-employed health insurance costs — varies by state market. Use our individual state calculators to compare your specific situation.
Browse All 50 State Calculators
Click any state to open its dedicated 1099 tax calculator, pre-loaded with that state's rates.
Alabama (5%)
Alaska (0%) ✅
Arizona (2.5%)
Arkansas (4.7%)
California (9.3%)
Colorado (4.4%)
Connecticut (6.99%)
Delaware (6.6%)
Florida (0%) ✅
Georgia (5.5%)
Hawaii (11%)
Idaho (5.8%)
Illinois (4.95%)
Indiana (3.15%)
Iowa (6%)
Kansas (5.7%)
Kentucky (4.5%)
Maine (7.15%)
Maryland (5.75%)
Massachusetts (5%)
Michigan (4.25%)
Minnesota (9.85%)
Mississippi (5%)
Missouri (4.9%)
Montana (6.9%)
Nebraska (6.84%)
Nevada (0%) ✅
New Hampshire (0%) ✅
New Jersey (6.37%)
New Mexico (5.9%)
New York (6.85%)
North Carolina (4.75%)
North Dakota (2.5%)
Ohio (4%)
Oklahoma (4.75%)
Oregon (9.9%)
Pennsylvania (3.07%)
Rhode Island (5.99%)
South Carolina (7%)
South Dakota (0%) ✅
Tennessee (0%) ✅
Texas (0%) ✅
Utah (4.85%)
Vermont (8.75%)
Virginia (5.75%)
Washington (0%) ✅
Washington D.C. (8.95%)
West Virginia (6.5%)
Wisconsin (7.65%)
Wyoming (0%) ✅