Self-Employment Tax by State 2026: Complete Ranking
We calculated total self-employment taxes for a freelancer earning $80,000 net profit in every state. The spread between the cheapest and most expensive states is $7,747 per year.
Methodology
Every figure includes: federal self-employment tax (15.3% on 92.35% of net earnings, with the $184,500 Social Security wage cap), federal income tax (2026 brackets, $16,100 standard deduction, single filer), and state income tax (2026 brackets from state revenue departments). Local taxes (NYC, county piggyback taxes) are excluded. Business expenses are assumed zero — your deductions will lower every number proportionally.
Data sources: IRS Revenue Procedure 2025-32 and IR-2025-103 (federal), Tax Foundation 2026 state survey cross-verified with state Department of Revenue publications.
Full Ranking: Cheapest to Most Expensive
| Rank | State | Total Tax on $80K | State Rate |
|---|---|---|---|
| 1 | Alaska | $18,830 | No state income tax |
| 2 | Florida | $18,830 | No state income tax |
| 3 | Nevada | $18,830 | No state income tax |
| 4 | New Hampshire | $18,830 | No state income tax |
| 5 | South Dakota | $18,830 | No state income tax |
| 6 | Tennessee | $18,830 | No state income tax |
| 7 | Texas | $18,830 | No state income tax |
| 8 | Washington | $18,830 | No state income tax |
| 9 | Wyoming | $18,830 | No state income tax |
| 10 | Arizona | $20,286 | 2.5% flat |
| 11 | North Dakota | $20,286 | 2.5% top |
| 12 | Ohio | $20,432 | 2.75% flat |
| 13 | Indiana | $20,549 | 2.95% flat |
| 14 | Louisiana | $20,578 | 3% flat |
| 15 | Pennsylvania | $20,618 | 3.07% flat |
| 16 | Kentucky | $20,869 | 3.5% flat |
| 17 | Iowa | $21,044 | 3.8% flat |
| 18 | Arkansas | $21,102 | 3.9% top |
| 19 | North Carolina | $21,154 | 3.99% flat |
| 20 | Mississippi | $21,160 | 4% flat |
| 21 | Michigan | $21,306 | 4.25% flat |
| 22 | Colorado | $21,393 | 4.4% flat |
| 23 | Oklahoma | $21,451 | 4.5% top |
| 24 | Utah | $21,451 | 4.5% flat |
| 25 | Nebraska | $21,481 | 4.55% top |
| 26 | Missouri | $21,568 | 4.7% top |
| 27 | West Virginia | $21,638 | 4.82% top |
| 28 | Illinois | $21,714 | 4.95% flat |
| 29 | Alabama | $21,743 | 5% top |
| 30 | Georgia | $21,853 | 5.19% flat |
| 31 | Idaho | $21,917 | 5.3% flat |
| 32 | Kansas | $22,080 | 5.58% top |
| 33 | Montana | $22,121 | 5.65% top |
| 34 | Maryland | $22,180 | 5.75% top |
| 35 | Virginia | $22,180 | 5.75% top |
| 36 | New Mexico | $22,267 | 5.9% top |
| 37 | Rhode Island | $22,319 | 5.99% top |
| 38 | South Carolina | $22,325 | 6% top |
| 39 | Delaware | $22,675 | 6.6% top |
| 40 | Connecticut | $22,902 | 6.99% top |
| 41 | Maine | $22,995 | 7.15% top |
| 42 | Wisconsin | $23,286 | 7.65% top |
| 43 | Vermont | $23,927 | 8.75% top |
| 44 | Massachusetts | $24,073 | 9% top |
| 45 | Minnesota | $24,568 | 9.85% top |
| 46 | Oregon | $24,597 | 9.9% top |
| 47 | New Jersey | $25,092 | 10.75% top |
| 48 | District of Columbia | $25,092 | 10.75% top |
| 49 | New York | $25,179 | 10.9% top |
| 50 | Hawaii | $25,238 | 11% top |
| 51 | California | $26,577 | 13.3% top |
Key Findings
- Nine states tie for the best: all no-income-tax states produce identical $18,830 total tax bills at this income level.
- The gap is 41%: California's $26,577 is 41% higher than the $18,830 floor.
- Five of the ten most expensive jurisdictions are coastal: California, Hawaii, New York, DC, and New Jersey all exceed $25,000.
- Flat-tax states cluster in the affordable middle: Arizona (2.5%), Ohio (2.75%), and Indiana (2.95%) are within $2,000 of the no-tax states.
- Washington's "no income tax" needs context: its B&O gross-receipts tax applies to freelancers and isn't reflected here — actual Washington bills can exceed Texas/Florida for service businesses.
Calculate Your Own State Comparison
This ranking uses a single income level. Your actual numbers depend on your income, deductions, and filing status.
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