Freelance & 1099 State Tax Guide 2026

Your complete reference for state income tax rates on self-employment income. All 50 states plus Washington D.C., updated for the 2026 tax year. Click any state to calculate your exact tax bill.

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The 9 No-Income-Tax States

Freelancers in these states owe zero state income tax — only federal self-employment tax and federal income tax. This can save $2,000–$15,000+ per year compared to high-tax states.

Alaska No Tax

0%
No State Income Tax
No state income tax. No state sales tax either — one of the most tax-friendly states for freelancers.

Florida No Tax

0%
No State Income Tax
No individual income tax. Florida funds state government primarily through sales tax. Popular with high-income freelancers relocating from NY/CA.

Nevada No Tax

0%
No State Income Tax
No state income tax. Freelancers pay only federal taxes. Note: Nevada has a Modified Business Tax that may apply to certain business structures.

New Hampshire No Tax

0%
No State Income Tax
Fully income-tax-free as of 2025 after eliminating the interest and dividends tax. Freelance service income has always been tax-free here.

South Dakota No Tax

0%
No State Income Tax
No state income tax. No corporate income tax. One of the most business-friendly states in the country.

Tennessee No Tax

0%
No State Income Tax
Fully income-tax-free since 2021. Previously taxed investment income only. Freelance/1099 income has always been exempt.

Texas No Tax

0%
No State Income Tax
No state income tax. Texas has a franchise tax on certain business entities, but sole proprietors filing Schedule C are generally exempt.

Washington No Tax

0%
No State Income Tax
No individual income tax. Note: Washington has a Business & Occupation (B&O) tax on gross receipts that may apply to some freelancers.

Wyoming No Tax

0%
No State Income Tax
No state income tax. No corporate income tax. Minimal regulatory burden makes it attractive for remote freelancers.

All 50 States — 2026 Tax Rates at a Glance

Sorted by top marginal rate. For progressive states, the top rate shown applies to income above the highest bracket threshold.

StateTax TypeRate / Top RateNotes
CaliforniaProgressive13.3%Highest in the nation. 1% mental health surcharge on income over $1M.
HawaiiProgressive11%11% on income over $325,000. High cost of living compounds the tax burden.
New JerseyProgressive10.75%10.75% on income over $1M. 6.37% for most freelancers ($40K–$500K).
Washington D.C.Progressive10.75%10.75% on income over $1M. 8.5% for most freelancers.
OregonProgressive9.9%9.9% on income over $125,000 (single). No sales tax offsets some burden.
MinnesotaProgressive9.85%9.85% on income over $193,240 (single). 6.8% for most freelancers.
VermontProgressive8.75%8.75% on income over $229,550. 6.6% for most freelancers.
New YorkProgressive10.9%10.9% on income over $25M. 9.65% on $1M–$5M. 6.85% for most freelancers. NYC adds up to 3.876% city tax.
ConnecticutProgressive6.99%6.99% on income over $500,000. 5.5% for most freelancers.
WisconsinProgressive7.65%7.65% on income over $315,310. 5.3% for most freelancers.
MaineProgressive7.15%7.15% on income over $61,600. 5.8% for lower incomes.
IdahoFlat5.3%Flat rate on all income. Simplified calculation.
South CarolinaProgressive6.2%6.2% on income over $17,330. 0% on first $3,460.
MontanaProgressive5.9%5.9% on income over $20,500. 4.7% on lower income.
West VirginiaProgressive5.12%5.12% on income over $60,000. 2.36% on first $10,000.
DelawareProgressive6.6%6.6% on income over $60,000. No sales tax.
MarylandProgressive5.75%5.75% on income over $250,000. Plus county income tax (2.25%–3.2%).
VirginiaProgressive5.75%5.75% on income over $17,000. Most freelancers pay this top rate.
Rhode IslandProgressive5.99%5.99% on income over $176,050. 3.75% for lower incomes.
NebraskaProgressive5.84%5.84% on income over $35,730.
KansasProgressive5.58%5.58% on income over $23,000. 5.2% on lower income.
GeorgiaFlat5.19%Flat rate. Transitioning to lower flat rate over next few years.
IllinoisFlat4.95%Flat rate on all income. Simple calculation.
MassachusettsFlat5%5% flat rate. 9% surtax on income over $1M (effective 2023).
MichiganFlat4.25%Flat rate. Some cities add a local income tax (Detroit: 2.4%).
UtahFlat4.55%Flat rate. No standard deduction but offers a nonrefundable credit.
ColoradoFlat4.4%Flat rate. TABOR refunds may reduce effective rate in some years.
MissouriProgressive4.7%4.7% on income over $9,656. Generous standard deduction.
OhioProgressive3.99%0% on first $25,000. 3.99% on income over $110,650. Many cities add local income tax.
New MexicoProgressive5.9%5.9% on income over $210,000. 4.9% for most freelancers.
OklahomaProgressive4.75%4.75% on income over $7,200.
North CarolinaFlat4.5%Flat rate. Scheduled to decrease further in coming years.
IowaFlat3.8%Flat rate as of 2025. Significant simplification from prior progressive system.
ArkansasProgressive3.9%3.9% on income over $4,600. 2% on lower income.
AlabamaProgressive5%5% on income over $3,000. Low standard deduction.
LouisianaFlat3%Flat rate as of 2025. Significant tax reform reduced rates.
KentuckyFlat3.5%Flat rate. Scheduled to decrease to 3% if revenue triggers are met.
IndianaFlat2.95%Flat rate. County income taxes add 0.5%–2.9% in most counties.
PennsylvaniaFlat3.07%Flat rate. Local earned income taxes (1%–3.8%) apply in most municipalities.
North DakotaProgressive2.5%2.5% on income over $44,725. 1.95% on lower income. Very low burden.
ArizonaFlat2.5%Flat rate. One of the lowest flat rates in the nation.
MississippiProgressive4.7%0% on first $10,000. 4.7% on income above $10,000.
AlaskaNone0%No state income tax.
FloridaNone0%No state income tax.
NevadaNone0%No state income tax.
New HampshireNone0%No state income tax (fully eliminated 2025).
South DakotaNone0%No state income tax.
TennesseeNone0%No state income tax.
TexasNone0%No state income tax.
WashingtonNone0%No state income tax (B&O tax may apply to some businesses).
WyomingNone0%No state income tax.

How to Pay State Quarterly Estimated Taxes

Most states require quarterly estimated tax payments if you expect to owe more than $500–$1,000 in state income tax for the year. The process is similar to federal payments:

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