Wednesday, September 9, 2026·2026 Edition
Best States for Freelancers & Self-Employed (2026)
Self-employment tax hits hard — these states minimize the additional state burden on freelancers.
#1 State
Alaska
$79,125 take-home
States Ranked
30
Median: Mississippi
Spread
$4,809
#1 vs #30 difference
Key Takeaways
This ranking covers 30 states, with Alaska at the top ($79,125 take-home on $100K) and Illinois at the bottom ($74,316). The spread between best and worst is $4,809/year.
The ranking is influenced by state income tax rates, tax structure (flat vs graduated), local taxes, and in cost-adjusted rankings, the cost of living index. States with no income tax generally rank highest for raw take-home pay, but cost adjustments can shuffle the order significantly.
Full Rankings
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | Alaska | 0% | None | $79,125 | $6,594 | 20.9% | 127 | $62,303 |
| 2 | Florida | 0% | None | $79,125 | $6,594 | 20.9% | 100 | $79,125 |
| 3 | Nevada | 0% | None | $79,125 | $6,594 | 20.9% | 101 | $78,342 |
| 4 | New Hampshire | 0% | None | $79,125 | $6,594 | 20.9% | 108 | $73,264 |
| 5 | South Dakota | 0% | None | $79,125 | $6,594 | 20.9% | 92 | $86,005 |
| 6 | Tennessee | 0% | None | $79,125 | $6,594 | 20.9% | 90 | $87,917 |
| 7 | Texas | 0% | None | $79,125 | $6,594 | 20.9% | 93 | $85,081 |
| 8 | Washington | 0% | None | $79,125 | $6,594 | 20.9% | 110 | $71,932 |
| 9 | Wyoming | 0% | None | $79,125 | $6,594 | 20.9% | 94 | $84,176 |
| 10 | North Dakota | 2.5% | Grad. | $78,434 | $6,536 | 21.6% | 92 | $85,255 |
| 11 | Ohio | 2.75% | Flat | $77,091 | $6,424 | 22.9% | 90 | $85,657 |
| 12 | Arizona | 2.5% | Flat | $77,028 | $6,419 | 23.0% | 97 | $79,410 |
| 13 | Louisiana | 3% | Flat | $76,500 | $6,375 | 23.5% | 91 | $84,066 |
| 14 | Pennsylvania | 3.07% | Flat | $76,055 | $6,338 | 23.9% | 98 | $77,607 |
| 15 | Iowa | 3.8% | Flat | $75,937 | $6,328 | 24.1% | 89 | $85,322 |
| 16 | Mississippi | 4% | Flat | $75,857 | $6,321 | 24.1% | 83 | $91,394 |
| 17 | Kentucky | 3.5% | Flat | $75,743 | $6,312 | 24.3% | 90 | $84,158 |
| 18 | North Carolina | 3.99% | Flat | $75,644 | $6,304 | 24.4% | 95 | $79,625 |
| 19 | Colorado | 4.4% | Flat | $75,433 | $6,286 | 24.6% | 105 | $71,841 |
| 20 | Arkansas | 3.9% | Grad. | $75,400 | $6,283 | 24.6% | 86 | $87,674 |
| 21 | Missouri | 4.7% | Grad. | $75,389 | $6,282 | 24.6% | 89 | $84,706 |
| 22 | West Virginia | 4.82% | Grad. | $75,240 | $6,270 | 24.8% | 83 | $90,650 |
| 23 | Nebraska | 4.55% | Grad. | $75,237 | $6,270 | 24.8% | 91 | $82,678 |
| 24 | Michigan | 4.25% | Flat | $75,122 | $6,260 | 24.9% | 91 | $82,551 |
| 25 | Oklahoma | 4.5% | Grad. | $75,081 | $6,257 | 24.9% | 87 | $86,300 |
| 26 | Alabama | 5% | Grad. | $75,026 | $6,252 | 25.0% | 88 | $85,257 |
| 27 | Utah | 4.45% | Flat | $74,675 | $6,223 | 25.3% | 99 | $75,429 |
| 28 | Indiana | 2.95% | Flat | $74,472 | $6,206 | 25.5% | 90 | $82,747 |
| 29 | Massachusetts | 5% | Flat | $74,345 | $6,195 | 25.7% | 118 | $63,004 |
| 30 | Illinois | 4.95% | Flat | $74,316 | $6,193 | 25.7% | 93 | $79,910 |
Pro Tip
Use the take-home calculator to model your specific salary and filing status. Rankings based on $100K may look different at your actual income level, especially in graduated-tax states.