Self-employment tax hits hard — these states minimize the additional state burden on freelancers.
This ranking covers 30 states, with Alaska at the top ($79,125 take-home on $100K) and Massachusetts at the bottom ($74,125). The spread between best and worst is $5,000/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.
| # | 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. | $77,500 | $6,458 | 22.5% | 92 | $84,239 |
| 11 | Arizona | 2.5% | Flat | $76,625 | $6,385 | 23.4% | 97 | $78,995 |
| 12 | Arkansas | 3.9% | Grad. | $76,590 | $6,383 | 23.4% | 86 | $89,058 |
| 13 | Ohio | 2.75% | Flat | $76,375 | $6,365 | 23.6% | 90 | $84,861 |
| 14 | Oklahoma | 4.5% | Grad. | $76,200 | $6,350 | 23.8% | 87 | $87,586 |
| 15 | Indiana | 2.95% | Flat | $76,175 | $6,348 | 23.8% | 90 | $84,639 |
| 16 | Nebraska | 4.55% | Grad. | $76,168 | $6,347 | 23.8% | 91 | $83,701 |
| 17 | Louisiana | 3% | Flat | $76,125 | $6,344 | 23.9% | 91 | $83,654 |
| 18 | Pennsylvania | 3.07% | Flat | $76,055 | $6,338 | 23.9% | 98 | $77,607 |
| 19 | West Virginia | 4.82% | Grad. | $75,992 | $6,333 | 24.0% | 83 | $91,557 |
| 20 | Alabama | 5% | Grad. | $75,875 | $6,323 | 24.1% | 88 | $86,222 |
| 21 | Kentucky | 3.5% | Flat | $75,625 | $6,302 | 24.4% | 90 | $84,028 |
| 22 | Iowa | 3.8% | Flat | $75,325 | $6,277 | 24.7% | 89 | $84,635 |
| 23 | North Carolina | 3.99% | Flat | $75,135 | $6,261 | 24.9% | 95 | $79,089 |
| 24 | Mississippi | 4% | Flat | $75,125 | $6,260 | 24.9% | 83 | $90,512 |
| 25 | Missouri | 4% | Flat | $75,125 | $6,260 | 24.9% | 89 | $84,410 |
| 26 | Michigan | 4.25% | Flat | $74,875 | $6,240 | 25.1% | 91 | $82,280 |
| 27 | Colorado | 4.4% | Flat | $74,725 | $6,227 | 25.3% | 105 | $71,167 |
| 28 | Utah | 4.45% | Flat | $74,675 | $6,223 | 25.3% | 99 | $75,429 |
| 29 | Illinois | 4.95% | Flat | $74,175 | $6,181 | 25.8% | 93 | $79,758 |
| 30 | Massachusetts | 5% | Flat | $74,125 | $6,177 | 25.9% | 118 | $62,818 |