Freelance Tax Guides by State

Progressive rates from 1% to 13.3% on income over $1 million. Most freelancers fall in the 6–9.3% range.

Progressive rates from 4% to 10.9%. NYC residents pay an additional 3.078–3.876% city tax.

Texas has no personal income tax and no state-level capital gains tax.

Florida has no personal income tax.

Washington has no personal income tax, but does have the Business & Occupation (B&O) tax.

Illinois has a flat income tax rate of 4.95% on all income — one of the simplest state tax structures.

Massachusetts has a flat 5% rate. An additional 4% "millionaires tax" applies to income over $1 million.

Colorado has a low flat income tax rate of 4.4% on federal taxable income.

Georgia moved to a flat rate of 5.49% in 2024, with plans to reduce to 4.99% by 2029.

Arizona moved to a flat 2.5% income tax rate in 2023 — one of the lowest in the US among states with income taxes.

Alabama has a progressive income tax with rates from 2% to 5% on income over $3,000 (single filers).

Alaska has no personal income tax and no state sales tax.

Arkansas reduced its top income tax rate to 4.7% in 2023, with further reductions planned.

Connecticut has a progressive income tax with rates from 3% to 6.99% on income over $500,000.

Delaware has a progressive income tax with rates from 2.2% to 6.6% on income over $60,000.

Hawaii has one of the highest income tax rates in the US — progressive rates from 1.4% to 11% on income over $200,000.

Idaho moved to a flat 5.8% income tax rate in 2023, simplifying the previously progressive structure.

Indiana has a low flat 3.05% state income tax rate, plus county-level income taxes of 0.5-2.9%.

Iowa is reducing its income tax to a flat 3.9% rate by 2026. In 2024, the top rate is 5.7%.

Kansas has income tax rates of 3.1% and 5.7%, with the top rate applying to income over $30,000.

Kentucky has a flat 4.5% income tax rate, down from 5% in 2023.

Louisiana has a progressive income tax with rates from 1.85% to 4.25%. Louisiana also allows a deduction for federal income taxes paid.

Maine has a progressive income tax with rates from 5.8% to 7.15% on income over $54,450 for single filers.

Maryland has a progressive state income tax from 2% to 5.75%, plus mandatory county income taxes of 2.25-3.2%.

Michigan has a flat 4.25% state income tax rate. Many Michigan cities also levy local income taxes of 1-2.4%.

Minnesota has a progressive income tax with rates from 5.35% to 9.85% on income over $183,340 for single filers.

Mississippi is reducing its income tax to a flat 4% by 2026. Current rate is a flat 5%.

Missouri has a top income tax rate of 4.8%, reduced from 5.3% in 2023. Further reductions are planned.

Montana has a progressive income tax with rates up to 6.9%. Montana has no sales tax.

Nebraska is reducing its top income tax rate to 3.99% by 2027. Current top rate is 6.64%.

Nevada has no personal income tax.

New Hampshire has no income tax on wages or self-employment income. The 5% tax on dividends and interest income is being phased out (eliminated by 2025).

New Jersey has a progressive income tax from 1.4% to 10.75%. Most freelancers fall in the 5.525-6.37% range.

New Mexico has progressive income tax rates from 1.7% to 5.9% on income over $210,000.

North Carolina has a flat 4.99% income tax rate, planned to decrease to 3.99% by 2027.

North Dakota has one of the lowest income tax rates in the US, with a top rate of 2.5%.

Ohio has a progressive income tax with a top rate of 3.99% on income over $115,300.

Oklahoma has a progressive income tax with rates from 0.25% to 4.75% on income over $12,200.

Oregon has a progressive income tax from 4.75% to 9.9%. Oregon has no sales tax.

Pennsylvania has a low flat 3.07% income tax rate. Most municipalities also levy a local earned income tax of 1-2%.

Rhode Island has a progressive income tax with rates from 3.75% to 5.99% on income over $176,050.

South Carolina has a progressive income tax with rates from 0% to 7% on income over $16,040.

South Dakota has no personal income tax.

Tennessee has no income tax on wages or self-employment income.

Utah has a low flat 4.85% income tax rate — one of the most competitive in the Mountain West.

Vermont has a progressive income tax with rates from 3.35% to 8.75% on income over $213,150.

Virginia has a progressive income tax with rates from 2% to 5.75% on income over $17,000.

West Virginia has a progressive income tax from 3% to 6.5% on income over $60,000.

Wisconsin has a progressive income tax with rates from 3.54% to 7.65% on income over $374,600.

Wyoming has no personal income tax and no corporate income tax.