50 states · 2024 rates · Sortable

state income taxfreelancer taxes1099 state taxno income tax statesstate tax comparisoncontractor taxes

//// Career · Taxes

State Income Tax Overview 2024

All 50 states + DC. Rates, rankings, and contractor-specific notes — so you know what you're getting into before you pick up a contract or move.

SE Tax Rate15.3%(vs 7.65% W-2)

QBI Deduction20%(Section 199A)

Quarterly DeadlinesApr · Jun · Sep · Jan

No income tax

High friendliness

Low friendliness

51 of 51 states

		Notes
ALAlabama	5.0%	Top rate at $3k+ income. Local taxes in Birmingham/Montgomery.	Med
AKAlaska	0%	No state income tax. No sales tax. Permanent Fund Dividend can add income.	High
AZArizona	2.5% (flat)	Flat rate effective 2023. One of the lowest in the country.	High
ARArkansas	4.4%	Reduced in 2024. Separate rate schedule for low-income earners.	Med
CACalifornia	13.3%	Highest rate in the US. SDI tax applies to SE income (~1%). Mental Health surcharge 1% on $1M+ income.	Low
COColorado	4.4% (flat)	Flat rate. Denver has no local income tax.	High
CTConnecticut	6.99%	7 brackets. High cost of living. No local income tax.	Low
DEDelaware	6.6%	6 brackets. No sales tax. Favorable for business formation.	Med
DCDistrict of Columbia	10.75%	DC + federal = very high combined burden. No suburban option without moving states.	Low
FLFlorida	0%	No state income tax. 6% sales tax. Popular freelancer destination.	High
GAGeorgia	5.49%	Transitioning to flat 4.99% by 2029. Atlanta has no local income tax.	Med
HIHawaii	11.0%	2nd highest in the US. 12 brackets. High cost of living compounds burden.	Low
IDIdaho	5.8%	Two brackets as of 2023. No local income taxes.	Med
ILIllinois	4.95% (flat)	Flat rate but among highest property taxes in the US. No deductions for SE expenses.	Med
INIndiana	3.05% (flat)	Flat rate. County income taxes apply (0.5%–2.9% additional).	High
IAIowa	5.7%	Continuing reductions; flat 3.9% rate by 2026.	Med
KSKansas	5.7%	3 brackets. Kansas City, KS has local earnings tax.	Med
KYKentucky	4.5% (flat)	Flat rate. Many cities have local occupational taxes (1%–2.5%).	Med
LALouisiana	4.25%	3 brackets. No local income tax on SE income.	Med
MEMaine	7.15%	3 brackets. No local income tax.	Med
MDMaryland	5.75%	County taxes add 2.25%–3.2%. High earner surcharge in some counties.	Med
MAMassachusetts	5% (9% >$1M)	Flat 5% + 4% millionaire surtax on income >$1M effective 2023.	Med
MIMichigan	4.25% (flat)	Flat rate. Cities like Detroit add 1%–2.4%.	Med
MNMinnesota	9.85%	4 brackets. Top rate kicks in at ~$183k. No local income tax.	Low
MSMississippi	5.0%	Top rate being reduced to 4% by 2026.	Med
MOMissouri	4.8%	Reducing further through 2026 triggers. St. Louis/KC have local earnings taxes.	Med
MTMontana	5.9%	Restructured to 2 brackets in 2024. No sales tax.	Med
NENebraska	5.84%	Reducing further; flat 3.99% by 2027.	Med
NVNevada	0%	No income tax. Commerce Tax on businesses with >$4M gross revenue.	High
NHNew Hampshire	0%	No tax on wages or SE income. Interest/dividend tax eliminated Jan 2025.	High
NJNew Jersey	10.75%	10.75% rate applies above $1M. Below $500k top rate is 8.97%.	Low
NMNew Mexico	5.9%	5 brackets. Gross receipts tax (like sales tax) is unusual for contractors.	Med
NYNew York	10.9%	NYC adds up to 3.876% city tax. Yonkers adds 16.75% surcharge on state tax.	Low
NCNorth Carolina	4.75%	Reducing to 3.99% by 2026. No local income tax.	High
NDNorth Dakota	2.5%	Top rate 2.5% at $440k+. Very business-friendly environment.	High
OHOhio	3.5%	Low state rate BUT most cities add 1%–2.5% municipal income tax. Columbus 2.5%.	Med
OKOklahoma	4.75%	5 brackets. Relatively low overall burden.	Med
OROregon	9.9%	Portland adds 1% Metro tax + 0.1% Preschool tax for high earners. No sales tax.	Low
PAPennsylvania	3.07% (flat)	Flat rate with very few deductions. Local EIT taxes add 1%–3.9% in most cities.	Med
RIRhode Island	5.99%	3 brackets. No local income tax.	Med
SCSouth Carolina	6.4%	Reducing to 6% by 2027. No local income tax.	Med
SDSouth Dakota	0%	No income tax. Low property taxes. Favorable for S-corp elections.	High
TNTennessee	0%	Hall income tax (dividends) eliminated Jan 2021. Wages/SE income always untaxed.	High
TXTexas	0%	No income tax. Franchise tax applies to most business entities.	High
UTUtah	4.65% (flat)	Flat rate. Taxpayer tax credit reduces effective rate for many.	High
VTVermont	8.75%	5 brackets. Some local taxes. High overall burden for contractors.	Low
VAVirginia	5.75%	4 brackets. No local income tax.	Med
WAWashington	0%	No income tax. B&O tax on gross business receipts. Capital gains tax since 2022.	High
WVWest Virginia	5.12%	Reducing annually; targeting flat rate. No local income tax.	Med
WIWisconsin	7.65%	4 brackets. No local income tax. Cities have high property taxes.	Med
WYWyoming	0%	No income tax. No corporate income tax. Very low overall tax burden.	High

How to Use This Table

Top Rate — The highest marginal income tax rate for that state as of 2024. For flat-rate states it applies to all income. For bracketed states it applies only above the stated threshold.

Freelancer Rating — Editorial judgment weighing: income tax burden, local/city taxes, SE tax treatment, sales tax (some states tax digital services), and overall cost of doing business. It is not purely the income tax rate.

No income tax ≠ no taxes — States like Washington (B&O on gross receipts), Texas (franchise tax), and New Hampshire (still had interest/dividend tax until 2025) have other mechanisms that affect freelancers. Read the notes.

Rates change — Several states (Iowa, Nebraska, Georgia, Mississippi, NC) are actively reducing rates through 2026–2029. Check current law before making any residency decisions.

Important Disclaimer

This table is for informational and planning purposes only. It does not constitute tax, legal, or financial advice. Tax rates, rules, and credits change frequently and vary significantly based on individual circumstances. Do not make residency, domicile, or entity-structure decisions based solely on this information. Consult a licensed CPA or tax attorney before making any decisions with material financial or legal consequences.