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Wednesday, September 9, 2026·2026 Edition
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The TakeHomeTax

Best States for Remote Workers (2026)

Low taxes plus low cost of living — the ideal combination for remote workers earning big-city salaries.

#1 State
Alaska
$79,125 take-home
States Ranked
24
Median: Louisiana
Spread
$4,653
#1 vs #24 difference

Key Takeaways

Remote workers can live anywhere, making state tax rates a genuine choice. The best states combine low or no income tax with affordable living costs. Alaska leads this category, offering $62,303 in cost-adjusted take-home on $100K.

The ideal remote work state has no income tax AND below-average cost of living. States like South Dakota, Tennessee, Texas, Wyoming hit both criteria. But even low-tax states with slightly above-average costs (like Alaska) can be excellent if they offer lifestyle amenities that matter to you.

Full Rankings

#StateTax RateTypeTake-HomeMonthlyEff. RateCost IndexCost-Adj.
1Alaska0%None$79,125$6,59420.9%127$62,303
2Florida0%None$79,125$6,59420.9%100$79,125
3Nevada0%None$79,125$6,59420.9%101$78,342
4New Hampshire0%None$79,125$6,59420.9%108$73,264
5South Dakota0%None$79,125$6,59420.9%92$86,005
6Tennessee0%None$79,125$6,59420.9%90$87,917
7Texas0%None$79,125$6,59420.9%93$85,081
8Washington0%None$79,125$6,59420.9%110$71,932
9Wyoming0%None$79,125$6,59420.9%94$84,176
10North Dakota2.5%Grad.$78,434$6,53621.6%92$85,255
11Ohio2.75%Flat$77,091$6,42422.9%90$85,657
12Arizona2.5%Flat$77,028$6,41923.0%97$79,410
13Louisiana3%Flat$76,500$6,37523.5%91$84,066
14Pennsylvania3.07%Flat$76,055$6,33823.9%98$77,607
15Iowa3.8%Flat$75,937$6,32824.1%89$85,322
16Mississippi4%Flat$75,857$6,32124.1%83$91,394
17Kentucky3.5%Flat$75,743$6,31224.3%90$84,158
18North Carolina3.99%Flat$75,644$6,30424.4%95$79,625
19Colorado4.4%Flat$75,433$6,28624.6%105$71,841
20Arkansas3.9%Grad.$75,400$6,28324.6%86$87,674
21Michigan4.25%Flat$75,122$6,26024.9%91$82,551
22Oklahoma4.5%Grad.$75,081$6,25724.9%87$86,300
23Utah4.45%Flat$74,675$6,22325.3%99$75,429
24Indiana2.95%Flat$74,472$6,20625.5%90$82,747
Pro Tip
Before choosing, check your employer’s remote work tax policy. Some companies adjust pay by location (geo-adjusted compensation), which can offset the tax benefits of moving to a low-cost state.

Related Rankings

Best States for High Earners Over $200KBest States for Median Income EarnersMost Tax-Friendly States for RetireesBest States for Freelancers & Self-Employed9 States With No Income TaxStates With Flat Income Tax RatesStates With Graduated Income Tax
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