Self-employment tax by state, 2026: the full ranking
Where does a $80,000 freelancer pay the least tax?
Running the same single filer with $80,000 of net profit through all 51 jurisdictions, the total 2026 bill ranges from $16,125 in Alaska to $22,057 in Oregon — a spread of $5,932. Most of the bill is federal and identical everywhere, which is why the gap is narrower than top-rate rankings imply.
Why most rankings get this wrong
The usual approach is to order states by their top marginal income tax rate. That measures a bracket almost no freelancer reaches. California's 13.3% begins above $1 million; at $80,000 of profit California ranks 32th of 51, at $19,014. Oregon, whose headline rate is lower, is the most expensive jurisdiction in the country at this income — because its 8.75% bracket starts at $11,401.
At freelancer income, where a state's brackets begin matters far more than where they end.
The ranking: total 2026 tax on $80,000 of net profit
Single filer, no W-2 wages, no business expenses, standard deduction and QBI deduction applied. Federal self-employment tax and federal income tax are included, which is why even the no-tax states show a substantial figure. Local income taxes are excluded and noted separately.
| # | State | State tax | Total tax | Effective | Top rate | Local |
|---|---|---|---|---|---|---|
| 1 | Alaska | — | $16,125 | 20.2% | None | — |
| 2 | Florida | — | $16,125 | 20.2% | None | — |
| 3 | Nevada | — | $16,125 | 20.2% | None | — |
| 4 | New Hampshire | — | $16,125 | 20.2% | None | — |
| 5 | South Dakota | — | $16,125 | 20.2% | None | — |
| 6 | Tennessee | — | $16,125 | 20.2% | None | — |
| 7 | Texas | — | $16,125 | 20.2% | None | — |
| 8 | Washington | — | $16,125 | 20.2% | None | — |
| 9 | Wyoming | — | $16,125 | 20.2% | None | — |
| 10 | North Dakota | $191 | $16,316 | 20.4% | 2.5% | — |
| 11 | Ohio | $1,262 | $17,388 | 21.7% | 2.75% | Yes |
| 12 | Arizona | $1,650 | $17,775 | 22.2% | 2.5% | — |
| 13 | Louisiana | $1,844 | $17,970 | 22.5% | 3% | — |
| 14 | Indiana | $2,164 | $18,289 | 22.9% | 2.95% | Yes |
| 15 | Iowa | $2,213 | $18,339 | 22.9% | 3.8% | Yes |
| 16 | Pennsylvania | $2,282 | $18,408 | 23% | 3.07% | Yes |
| 17 | New Mexico | $2,329 | $18,454 | 23.1% | 5.9% | — |
| 18 | Rhode Island | $2,368 | $18,493 | 23.1% | 5.99% | — |
| 19 | North Carolina | $2,458 | $18,583 | 23.2% | 3.99% | — |
| 20 | Mississippi | $2,482 | $18,607 | 23.3% | 4% | — |
| 21 | Kentucky | $2,485 | $18,610 | 23.3% | 3.5% | Yes |
| 22 | Missouri | $2,557 | $18,682 | 23.4% | 4.7% | Yes |
| 23 | New Jersey | $2,560 | $18,685 | 23.4% | 10.75% | Yes |
| 24 | Colorado | $2,563 | $18,688 | 23.4% | 4.4% | Yes |
| 25 | Wisconsin | $2,597 | $18,722 | 23.4% | 7.65% | — |
| 26 | West Virginia | $2,649 | $18,774 | 23.5% | 4.82% | Yes |
| 27 | Nebraska | $2,679 | $18,805 | 23.5% | 4.55% | — |
| 28 | Arkansas | $2,716 | $18,841 | 23.6% | 3.9% | — |
| 29 | Vermont | $2,797 | $18,922 | 23.7% | 8.75% | — |
| 30 | Idaho | $2,832 | $18,957 | 23.7% | 5.3% | — |
| 31 | Montana | $2,840 | $18,965 | 23.7% | 5.65% | — |
| 32 | California | $2,889 | $19,014 | 23.8% | 13.3% | — |
| 33 | Michigan | $2,909 | $19,034 | 23.8% | 4.25% | Yes |
| 34 | Oklahoma | $2,950 | $19,076 | 23.8% | 4.5% | — |
| 35 | Georgia | $3,236 | $19,361 | 24.2% | 5.19% | — |
| 36 | South Carolina | $3,304 | $19,429 | 24.3% | 6% | — |
| 37 | Maryland | $3,320 | $19,445 | 24.3% | 5.75% | Yes |
| 38 | Connecticut | $3,339 | $19,464 | 24.3% | 6.99% | — |
| 39 | Utah | $3,346 | $19,471 | 24.3% | 4.5% | — |
| 40 | District of Columbia | $3,386 | $19,511 | 24.4% | 10.75% | — |
| 41 | New York | $3,418 | $19,543 | 24.4% | 10.9% | Yes |
| 42 | Massachusetts | $3,497 | $19,623 | 24.5% | 9% | — |
| 43 | Virginia | $3,514 | $19,640 | 24.5% | 5.75% | — |
| 44 | Alabama | $3,527 | $19,653 | 24.6% | 5% | Yes |
| 45 | Minnesota | $3,532 | $19,658 | 24.6% | 9.85% | — |
| 46 | Illinois | $3,535 | $19,661 | 24.6% | 4.95% | — |
| 47 | Delaware | $3,676 | $19,801 | 24.8% | 6.6% | Yes |
| 48 | Kansas | $3,860 | $19,985 | 25% | 5.58% | Yes |
| 49 | Maine | $4,199 | $20,324 | 25.4% | 7.15% | — |
| 50 | Hawaii | $4,671 | $20,796 | 26% | 11% | — |
| 51 | Oregon | $5,932 | $22,057 | 27.6% | 9.9% | Yes |
Local income taxes, which every other ranking leaves out
Seventeen states let a city, county or school district levy income tax on top of the state rate. No state-level comparison includes it, and for the people it affects it often exceeds the state tax itself — a Columbus resident pays 2.5% to the city against Ohio's 2.75%. The table above understates the bill for everyone in the jurisdictions below.
| State | Local income tax | Highest named rates |
|---|---|---|
| Alabama | Yes — municipal occupational taxes | Birmingham 1% · Gadsden / Opelika 2% |
| Colorado | Yes — flat occupational privilege tax | Denver $5.75/month · Aurora / Glendale / Sheridan $2–$6/month |
| Delaware | Yes — Wilmington only | Wilmington 1.25% |
| Indiana | Yes — all 92 counties | Marion County (Indianapolis) 2.02% · Typical range 0.5%–3% |
| Iowa | Yes — school district surtax | School district surtax 0%–20% of state tax |
| Kansas | Local intangibles tax (limited) | Selected counties up to 2.25% on intangible income |
| Kentucky | Yes — occupational license taxes | Louisville Metro 2.2% · Lexington-Fayette 2.25% |
| Maryland | Yes — county, 2.25%–3.20% | Montgomery County 3.20% · Baltimore City 3.20% |
| Michigan | Yes — 24 cities, 1%–2.4% | Detroit 2.4% resident · Grand Rapids 1.5% resident |
| Missouri | Yes — St. Louis and Kansas City | Kansas City 1% · St. Louis 1% |
| New Jersey | Newark payroll tax (employers) | Newark payroll tax 1% — employer-side |
| New York | Yes — NYC and Yonkers | New York City 3.078%–3.876% · Yonkers (resident surcharge) 16.75% of state tax |
| Ohio | Yes — municipal, 0.5%–3% | Columbus 2.5% · Cleveland 2.5% |
| Oregon | Yes — Portland metro area | Multnomah County Preschool for All 1.5%–3% above thresholds · Metro Supportive Housing Services 1% above thresholds |
| Pennsylvania | Yes — EIT ~1%, Philadelphia higher | Philadelphia (resident) ~3.75% · Pittsburgh 3% |
| West Virginia | Yes — municipal service fees | Charleston / Huntington / Morgantown flat weekly fee |
The calculators do not model local income tax. On $80,000 of profit, each 1% of local rate is roughly $700 on top of the figures above.
Method
Each row is computed at build time by the same engine that runs the calculators, following the IRS order of operations: net profit, the 92.35% adjustment, self-employment tax, the 50% deduction against AGI, the $16,100 standard deduction, the 20% QBI deduction, then the federal brackets. State tax is computed separately on state AGI less that state's own standard deduction — no state allows the federal QBI deduction, and almost none allow the federal standard deduction. Figures regenerate whenever the underlying rate data changes, so the table cannot drift away from the calculators.
Frequently asked questions
Frequently Asked Questions
Which state has the lowest total tax for self-employed people in 2026?
Which state is most expensive?
Is California the worst state for freelancer taxes?
How much does moving to a no-income-tax state actually save?
Sources
- IRS Revenue Procedure 2025-32 — 2026 inflation adjustments — tax brackets, standard deduction, QBI thresholds.
- IRS Schedule SE instructions — Self-employment tax: the 92.35% adjustment, the Social Security wage base, the Medicare surtax.
- IRS Form 1040-ES — Estimated tax deadlines and the safe-harbour rules used for the quarterly schedule.
- IRS Publication 334 — Tax guide for small business — deductible expenses and net profit.
- IRS Social Security wage base — The $184,500 Social Security cap applied for 2026.
How these numbers are produced
Calculations follow the order of operations on the IRS forms themselves: net profit, the 92.35% adjustment, self-employment tax, the 50% deduction against AGI, the standard deduction, the §199A QBI deduction with its phase-out, then the federal brackets. State tax is computed separately on state AGI less that state's own standard deduction, because no state allows the federal QBI deduction and almost none allow the federal standard deduction.
What it does not cover. The calculators model a single filer or a married couple filing jointly with self-employment income as the main source. They do not model local income taxes, W-2 wages held alongside freelance work, itemized deductions, the alternative minimum tax, or credits. Where a local income tax exists, it is described on that state's page.
Not advice. SelfTaxCalc produces estimates, not tax advice. No one here is a CPA, an enrolled agent or a tax attorney, and nothing on this site creates a professional relationship. Estimates are a starting point for planning and for a conversation with a professional — they are not a substitute for one.