Here's the thing nobody tells you when they rank states for freelancers: the state income tax is the small part. The two costs that actually decide your bill are federal, and they follow you everywhere. The 15.3% self-employment tax doesn't care which state you live in. Neither do the federal income tax brackets. State tax sits on top of that, and at a normal freelance income it's rarely more than about 7% of your profit.
So instead of comparing rates, we added up the full bill. For a single-filer freelancer taking the standard deduction, we calculated self-employment tax, federal income tax, and state income tax in every state, using each state's actual 2026 brackets and deductions rather than a single headline rate. The numbers below come from the same engine that runs our calculator.
At $75,000 of net profit, a freelancer's total 2026 tax bill runs from $17,101 in the nine no-income-tax states (and Ohio, thanks to its business income deduction) up to $22,371 in Oregon. That's a $5,270 swing based purely on where you live. At $100,000 the gap widens to $7,303. Worth knowing — but roughly the same as what one or two overlooked deductions are worth, which you can claim from any state.
How we calculated it
One freelancer, single, standard deduction, no dependents, no itemizing. Two income levels: $75,000 and $100,000 in net profit (what's left after business expenses).
- Self-employment tax: 15.3% on 92.35% of net profit. Social Security caps at the 2026 wage base of $184,500; Medicare has no cap. Half the SE tax comes back as a deduction.
- Federal income tax: 2026 brackets and the $16,100 single standard deduction (IRS Rev. Proc. 2025-32).
- State income tax: each state's own 2026 brackets, standard deduction, and exemptions or credits. A couple of states (New Jersey, Pennsylvania) tax net profit directly and don't allow the federal SE deduction, which we accounted for.
"Effective rate" is total tax divided by net profit. Local city taxes are flagged but not added in.
The nine states where you owe $0 in state tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't tax self-employment income. A freelancer in any of them pays only the federal bill: $17,101 at $75K, $25,745 at $100K. That works out to an effective rate of 22.8% and 25.7%.
Ohio lands in the same place for most freelancers, which surprises people. Its Business Income Deduction exempts the first $250,000 of business income from state tax, so a sole proprietor below that line owes Ohio nothing. The catch is local: most Ohio cities charge a 2% to 2.5% income tax on net profit, which this study does not add in. That is why Ohio carries an asterisk in the tables. Everyone else starts here and adds state tax on top.
Lowest total tax at $100,000 net profit
| Rank | State | State tax | Total tax | Effective rate | Take-home |
|---|---|---|---|---|---|
| 1–10 | 9 no-tax states + Ohio* | $0 | $25,745 | 25.7% | $74,255 |
| 11 | North Dakota | $553 | $26,298 | 26.3% | $73,702 |
| 12 | Arizona | $1,921 | $27,666 | 27.7% | $72,334 |
| 13 | Louisiana | $2,402 | $28,147 | 28.1% | $71,853 |
North Dakota is the cheapest state that actually taxes income. It runs a 0% bracket up to about $48,000 and only 1.95% above that, so a freelancer there pays barely more than someone in Texas. Arizona's flat 2.5% and Louisiana's flat 3% land right behind it.
Highest total tax at $100,000 net profit
| Rank | State | State tax | Total tax | Effective rate | Take-home |
|---|---|---|---|---|---|
| 51 | Oregon | $7,302 | $33,048 | 33.0% | $66,952 |
| 50 | Hawaii | $5,533 | $31,278 | 31.3% | $68,722 |
| 49 | Washington D.C. | $4,931 | $30,676 | 30.7% | $69,324 |
| 48 | Minnesota | $4,796 | $30,541 | 30.5% | $69,459 |
| 47 | Delaware | $4,793 | $30,538 | 30.5% | $69,462 |
Oregon is the most expensive place in the country to freelance. It hits a 9.9% top rate at a fairly modest income and gives a small standard deduction, so the bill climbs fast. A freelancer earning $100K net keeps about $7,300 less in Oregon than across the river in Washington, which taxes none of it.
Run your own number
These are single-filer estimates. Your filing status, expenses, and state change the answer. Plug in your real figures and see the full breakdown.
Open the free calculator →What this actually means for you
Moving from Oregon to Washington saves a freelancer around $7,300 a year. Real money. But notice that's about the same as the value of a home office deduction, mileage, and a self-employed health insurance write-off added together — and you can claim those without packing a single box. The federal self-employment tax is the biggest line on every freelancer's bill no matter where they live, somewhere around $10,600 to $14,100 at these incomes. Lowering your net profit through legitimate deductions chips away at all three layers at once. Relocating only touches one.
A no-income-tax state saves you a fixed amount, and that amount shrinks as a share of your income the more you earn. It also comes with trade-offs this study doesn't measure: property taxes, sales taxes, cost of living. And not every state with brackets is expensive. North Dakota, Arizona, Indiana, and Pennsylvania keep mid-income freelancers within a few hundred dollars of the no-tax states. Oregon, Hawaii, and Minnesota are the ones that really cost you.
Full ranking: total 2026 tax, single filer, $75,000 net profit
| Rank | State | State tax | Total tax | Eff. rate | Take-home |
|---|---|---|---|---|---|
| 1–10 | AK, FL, NH, NV, OH*, SD, TN, TX, WA, WY | $0 | $17,101 | 22.8% | $57,899 |
| 11 | North Dakota | $100 | $17,201 | 22.9% | $57,799 |
| 12 | Arizona | $1,340 | $18,442 | 24.6% | $56,558 |
| 13 | Louisiana | $1,705 | $18,806 | 25.1% | $56,194 |
| 14 | Iowa | $1,997 | $19,098 | 25.5% | $55,902 |
| 15 | Rhode Island | $1,997 | $19,098 | 25.5% | $55,902 |
| 16 | Indiana | $2,027 | $19,128 | 25.5% | $55,872 |
| 17 | Mississippi | $2,056 | $19,158 | 25.5% | $55,842 |
| 18 | Arkansas | $2,091 | $19,193 | 25.6% | $55,807 |
| 19 | New Mexico | $2,110 | $19,212 | 25.6% | $55,788 |
| 20 | Vermont | $2,140 | $19,242 | 25.7% | $55,758 |
| 21 | North Carolina | $2,272 | $19,374 | 25.8% | $55,626 |
| 22 | Nebraska | $2,292 | $19,393 | 25.9% | $55,607 |
| 23 | Pennsylvania | $2,303 | $19,404 | 25.9% | $55,596 |
| 24 | West Virginia | $2,303 | $19,405 | 25.9% | $55,595 |
| 25 | South Carolina | $2,306 | $19,407 | 25.9% | $55,593 |
| 26 | Kentucky | $2,322 | $19,423 | 25.9% | $55,577 |
| 27 | Missouri | $2,339 | $19,440 | 25.9% | $55,560 |
| 28 | Colorado | $2,358 | $19,460 | 25.9% | $55,540 |
| 29 | California | $2,364 | $19,465 | 26.0% | $55,535 |
| 30 | Montana | $2,577 | $19,679 | 26.2% | $55,321 |
| 31 | Idaho | $2,586 | $19,687 | 26.2% | $55,313 |
| 32 | Oklahoma | $2,591 | $19,693 | 26.3% | $55,307 |
| 33 | New Jersey | $2,598 | $19,699 | 26.3% | $55,301 |
| 34 | Wisconsin | $2,629 | $19,730 | 26.3% | $55,270 |
| 35 | Michigan | $2,712 | $19,813 | 26.4% | $55,187 |
| 36 | Georgia | $2,730 | $19,831 | 26.4% | $55,169 |
| 37 | Utah | $2,805 | $19,907 | 26.5% | $55,093 |
| 38 | Maryland | $2,947 | $20,049 | 26.7% | $54,951 |
| 39 | Maine | $3,054 | $20,156 | 26.9% | $54,844 |
| 40 | Connecticut | $3,084 | $20,185 | 26.9% | $54,815 |
| 41 | Washington D.C. | $3,084 | $20,186 | 26.9% | $54,814 |
| 42 | Kansas | $3,090 | $20,191 | 26.9% | $54,809 |
| 43 | New York | $3,167 | $20,268 | 27.0% | $54,732 |
| 44 | Virginia | $3,194 | $20,295 | 27.1% | $54,705 |
| 45 | Minnesota | $3,216 | $20,318 | 27.1% | $54,682 |
| 46 | Alabama | $3,220 | $20,322 | 27.1% | $54,678 |
| 47 | Delaware | $3,259 | $20,361 | 27.1% | $54,639 |
| 48 | Massachusetts | $3,265 | $20,367 | 27.2% | $54,633 |
| 49 | Illinois | $3,305 | $20,407 | 27.2% | $54,593 |
| 50 | Hawaii | $3,767 | $20,869 | 27.8% | $54,131 |
| 51 | Oregon | $5,269 | $22,371 | 29.8% | $52,629 |
*Ohio exempts the first $250,000 of business income under its Business Income Deduction. States with notable local income taxes (Ohio cities, Pennsylvania, New York City, Maryland counties, and others) may owe extra municipal tax not shown here.
Cite this data (free)
This is original research. Journalists, bloggers, accountants, and other tool sites are welcome to quote any figure or republish the full table with a link back to this page. No permission needed. If you need a state or income level not shown here, ask and we'll run it.
Suggested citation:
1099TaxEstimator.tax, "The 2026 Freelancer Tax Burden by State: A 50-State Study," https://1099taxestimator.tax/freelancer-tax-burden-by-state-2026 (single filer, tax year 2026).
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Keep reading
Sources: federal brackets, standard deduction, SE-tax rates, and the Social Security wage base are from IRS Rev. Proc. 2025-32 and the SSA for tax year 2026. State brackets and deductions are compiled from the Tax Foundation and state Departments of Revenue. Assumes a single filer with the standard deduction, no dependents, and no state credits beyond the standard exemption. Estimates for planning, not tax advice. Talk to a CPA before you file.