State Income Tax Rates for Freelancers in 2026: 50-State Table

By Reese Calloway · Updated 2026-09-28

How we research, cite and correct our guides

On this page

Nine states have no broad income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming tax no individual income, and Washington taxes only certain capital gains. The other 41 states and the District of Columbia tax wages and self-employment income. Top rates run from 2.5% in Arizona and North Dakota to 13.3% in California, whose top rate includes a 1% surcharge on taxable income over $1 million.

The table shows each state’s 2026 top marginal rate, or its single rate where the tax is flat, as of September 28, 2026. It starts from the Tax Foundation’s 2026 compilation, which reflects law as of February 11, 2026, and is updated for the five states that cut 2026 rates later in the year: Arkansas, Georgia, South Carolina, Utah and West Virginia. Washington’s capital gains rates come from its Department of Revenue. Local taxes are excluded.

2026 state income tax rates, all 50 states and DC

State	Structure	2026 top rate	Notes
Alabama	Graduated, 3 brackets	5%	Top rate above $3,000. Some or all federal income tax paid is deductible. Some localities levy income taxes.
Alaska	None	None	No individual income tax.
Arizona	Flat	2.5%	Tied with North Dakota for the lowest top rate.
Arkansas	Graduated (brackets: see source)	3.7%	Cut from 3.9%, retroactive to Jan. 1, 2026. Separate tax tables apply at lower incomes.
California	Graduated, 10 brackets	13.3%	Highest top rate; includes a 1% surcharge on taxable income over $1 million.
Colorado	Flat	4.4%	Income starting point includes the federal standard deduction.
Connecticut	Graduated, 7 brackets	6.99%	Top rate above $500,000. Benefit recapture means many high earners pay the top rate on all income.
Delaware	Graduated, 6 brackets	6.6%	Top rate above $60,000.
District of Columbia	Graduated, 7 brackets	10.75%	Top rate above $1 million.
Florida	None	None	No individual income tax.
Georgia	Flat	4.99%	Cut from 5.19% by HB 463, effective Jan. 1, 2026.
Hawaii	Graduated, 12 brackets	11%	Top rate above $325,000; most brackets of any state.
Idaho	Flat	5.3%	A small first slice of taxable income is taxed at 0%.
Illinois	Flat	4.95%	No standard deduction; $2,925 personal exemption per person.
Indiana	Flat	2.95%	Cut from 3%; 2.9% scheduled for 2027. Counties levy local income taxes.
Iowa	Flat	3.8%	Some localities levy income taxes.
Kansas	Graduated, 2 brackets	5.58%	Top rate above $23,000.
Kentucky	Flat	3.5%	Cut from 4%. Some cities and counties levy income taxes.
Louisiana	Flat	3%	Standard deduction of $12,875 (single).
Maine	Graduated, 3 brackets	7.15%	Top rate above $64,849.
Maryland	Graduated, 10 brackets	6.5%	Top rate above $1 million. Local income taxes add to this. 2% capital gains surtax when AGI exceeds $350,000.
Massachusetts	Graduated, 2 brackets	9%	5% on most income; 9% above $1,083,150 (2025 threshold, indexed).
Michigan	Flat	4.25%	24 cities levy income-related taxes.
Minnesota	Graduated, 4 brackets	9.85%	Top rate above $203,150.
Mississippi	Flat above $10,000	4%	Cut from 4.4%. First $10,000 of taxable income is taxed at 0%; 3.75% scheduled for 2027.
Missouri	Graduated, 7 brackets	4.7%	Top rate above $9,436. Exempts capital gains income. Some or all federal income tax paid is deductible. Some localities levy income taxes.
Montana	Graduated, 2 brackets	5.65%	Cut from 5.9%. Top rate above $47,500; 5.4% scheduled for 2027.
Nebraska	Graduated, 3 brackets	4.55%	Cut from 5.2%. Top rate above $24,760; phasing down toward 3.99%.
Nevada	None	None	No individual income tax.
New Hampshire	None	None	Interest and dividends tax repealed from 2025. A 7.5% business profits tax applies to business organizations, proprietorships included, with gross business income over $109,000.
New Jersey	Graduated, 7 brackets (8 joint)	10.75%	Top rate above $1 million.
New Mexico	Graduated, 6 brackets	5.9%	Top rate above $210,000.
New York	Graduated, 9 brackets	10.9%	Top rate above $25 million. New York City and Yonkers add local taxes; the MCTMT applies to self-employment net earnings in the Metropolitan Commuter Transportation District above $150,000.
North Carolina	Flat	3.99%	Cut from 4.25%.
North Dakota	Graduated, 2 brackets	2.5%	Tied with Arizona for the lowest top rate; lower incomes are taxed at 0%.
Ohio	Flat above $26,050	2.75%	Replaced graduated rates for 2026. Rate shown is for nonbusiness income; check Ohio’s business-income rules. City income taxes can apply.
Oklahoma	Graduated, 3 brackets	4.5%	Cut from 4.75%; six brackets became three. Top rate above $7,200.
Oregon	Graduated, 4 brackets	9.9%	Top rate above $125,000. Some or all federal income tax paid is deductible. Some localities levy income or payroll taxes.
Pennsylvania	Flat	3.07%	Local earned income taxes can apply.
Rhode Island	Graduated, 3 brackets	5.99%	Top rate above $186,450.
South Carolina	Graduated, 2 brackets	5.21%	Cut from 6% by H. 4216: 1.99% below $30,000, 5.21% from $30,000. Now starts from federal AGI.
South Dakota	None	None	No individual income tax.
Tennessee	None	None	No individual income tax; the state levies a business gross receipts tax and a corporate income tax.
Texas	None	None	No individual income tax; imposes a gross receipts tax on businesses.
Utah	Flat	4.45%	Cut from 4.5% by SB 60, effective for 2026. No quarterly estimated payments required.
Vermont	Graduated, 4 brackets	8.75%	Filers with federal AGI over $150,000 pay the greater of regular tax or 3% of federal AGI.
Virginia	Graduated, 4 brackets	5.75%	Top rate above $17,000.
Washington	None on wages; capital gains only	None	Capital gains tax of 7%, and 9.9% on gains over $1 million. B&O gross receipts tax applies to most businesses. A new 9.9% tax on filers with AGI over $1 million starts Jan. 1, 2028.
West Virginia	Graduated, 5 brackets	4.58%	Cut from 4.82%; every bracket rate reduced 5%, retroactive to Jan. 1, 2026. Top rate above $60,000.
Wisconsin	Graduated, 4 brackets	7.65%	Top rate above $332,720.
Wyoming	None	None	No individual income tax.

Bracket counts and dollar thresholds are for single filers, measured in state taxable income. Of the 41 states that tax wages, 15 use a single rate and 26, plus DC, use graduated brackets, from two in states such as Kansas and Montana to 12 in Hawaii. In a graduated state the top rate applies only to income in the top bracket.

Rate cuts that apply to 2026 income

Thirteen states cut rates for 2026. Eight cuts took effect on January 1 under laws passed in earlier years. Arkansas, Georgia, South Carolina, Utah and West Virginia passed cuts during 2026 that reach back to January 1, so tables published early in the year still show their old rates.

State	Previous top rate	2026 top rate	Change	State source
Arkansas	3.9%	3.7%	HB 1001 and SB 1, signed May 6, 2026; retroactive to Jan. 1	Governor (signing); rate from Tax Foundation
Georgia	5.19%	4.99%	HB 463, signed May 2026; applies from Jan. 1, 2026	Governor
Indiana	3%	2.95%	Earlier law; 2.9% set for 2027	Tax Foundation
Kentucky	4%	3.5%	Revenue trigger, approved by HB 1 in 2025	Tax Foundation
Mississippi	4.4%	4%	Scheduled phase-down; 3.75% set for 2027	Department of Revenue
Montana	5.9%	5.65%	HB 337 (2025); 5.4% set for 2027	Department of Revenue
Nebraska	5.2%	4.55%	Scheduled phase-down toward 3.99%	Tax Foundation
North Carolina	4.25%	3.99%	Final step under Session Law 2023-134	Department of Revenue
Ohio	Graduated	2.75% flat	HB 96 (2025)	Tax Foundation
Oklahoma	4.75%	4.5%	HB 2764 (2025); six brackets became three	Tax Foundation
South Carolina	6%	5.21%	H. 4216, signed March 30, 2026	Department of Revenue
Utah	4.5%	4.45%	SB 60, 2026 session	Utah House
West Virginia	4.82%	4.58%	SB 392, signed March 31, 2026; retroactive to Jan. 1	Tax Division

Because these cuts reach back to January 1, state estimated payments made earlier in 2026 at the old rate may add up to more than the final 2026 tax; any excess is settled on the 2026 return.

The nine states with no broad income tax

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas and Wyoming have no individual income tax. New Hampshire’s 3% interest and dividends tax ended for tax periods beginning on or after January 1, 2025, which left it with no individual income tax either. Washington taxes long-term capital gains, not wages or business income.

No personal income tax does not always mean no state tax on a freelance business:

New Hampshire’s business profits tax, 7.5%, applies to any business organization, proprietorships included, once gross business income from all activities exceeds $109,000 (tax periods beginning on or after January 1, 2025). Four estimated payments are required when the liability is over $200. The separate business enterprise tax, 0.55%, has a $298,000 filing threshold, and BET paid can be credited against the profits tax.
Washington’s business and occupation (B&O) tax is a gross receipts tax that most businesses pay, figured without deducting expenses; a small business credit can reduce it. The capital gains tax is 7% on the first $1 million of taxable gains, after a standard deduction ($278,000 for 2025), and 9.9% above that. A new 9.9% tax on individuals and joint filers with adjusted gross income over $1 million, created by SB 6346, takes effect January 1, 2028, with first returns due in April 2029.
Tennessee and Texas impose gross receipts taxes on businesses, and Tennessee also has a corporate income tax. Check with the state whether they reach your business.

Flat-tax states in 2026

Fifteen states have a single-rate income tax. From lowest to highest: Arizona 2.5%, Ohio 2.75%, Indiana 2.95%, Louisiana 3%, Pennsylvania 3.07%, Kentucky 3.5%, Iowa 3.8%, North Carolina 3.99%, Mississippi 4%, Michigan 4.25%, Colorado 4.4%, Utah 4.45%, Illinois 4.95%, Georgia 4.99% and Idaho 5.3%. Seven of them cut their rate for 2026: Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio and Utah.

A single rate does not mean every dollar is taxed. Mississippi’s rate applies only to taxable income above $10,000, Ohio’s starts above $26,050, and Idaho taxes a small first slice at 0%. Ohio’s 2.75% is stated for nonbusiness income, so self-employed Ohioans should check how the state treats business income. Six flat-tax states (Indiana, Iowa, Kentucky, Michigan, Ohio and Pennsylvania) also have local income taxes in some areas, so the state rate can understate the total.

How state tax stacks on federal income tax and self-employment tax

The same freelance profit can face three separate taxes before any local tax:

Federal self-employment tax: 15.3% (12.4% for Social Security plus 2.9% for Medicare) on net earnings from self-employment. It is the same whichever state you live in.
Federal income tax, figured after deducting the employer-equivalent portion of self-employment tax when calculating adjusted gross income (AGI).
State income tax, at the rates above, on state taxable income.

State taxable income is not the same as net profit. States often start from federal AGI, which already reflects the self-employment tax deduction, and then apply their own additions, subtractions, deductions and exemptions. The starting point varies: Colorado, Idaho, Iowa, Montana, New Mexico and North Dakota build the federal standard deduction into it, and South Carolina moved from federal taxable income to federal AGI for 2026. Because the state base is usually smaller than profit, and a graduated state’s top rate covers only the top slice, multiplying profit by the top rate usually overstates the state bill.

The layers do not combine into one headline percentage. What is my total freelancer tax rate? builds them one at a time, and the self-employment tax calculator handles the federal self-employment piece.

State estimated payments

Most income-tax states run their own estimated-payment system alongside the IRS’s, with separate thresholds, dates and vouchers. A few examples show how much they differ:

California generally requires estimated payments if you expect to owe at least $500 ($250 if married/RDP filing separately). Its 2026 installments are 30% by April 15, 2026, 40% by June 15, 2026, nothing on September 15, 2026 and 30% by January 15, 2027.
New York lists sole proprietors, self-employed individuals, contractors and freelance workers among the people who may have to make estimated payments.
Utah does not require quarterly estimated payments. To avoid penalties on an extended return, though, you must prepay 90% of the current year’s tax or 100% of the prior year’s by the original due date.

For the federal schedule and safe harbors, see quarterly estimated taxes for freelancers.

Local income taxes on top of the state rate

The Tax Foundation lists county- or city-level income taxes in Alabama, Indiana, Iowa, Kentucky, Maryland, Michigan, Missouri, New York, Ohio, Oregon and Pennsylvania, and local payroll, wage, or interest-and-dividend taxes in parts of California, Colorado, Delaware, Kansas, New Jersey, Oregon and West Virginia. Measured as a share of AGI within taxing jurisdictions (2023 data), average local rates were highest in Maryland (2.4%), New York (1.60%), Ohio (1.2%), Pennsylvania (0.99%) and Kentucky (0.93%).

Some examples:

New York City taxes its residents’ income wherever it is earned; nonresidents of the city do not owe it. Yonkers has a resident surcharge and a nonresident earnings tax that can reach a trade or business carried on in the city. The MCTMT applies to self-employed net earnings attributable to the Metropolitan Commuter Transportation District above $150,000 for 2026, up from $50,000.
Twenty-four Michigan cities levy income-related taxes.
Indiana counties levy local income taxes, and the Indiana Department of Revenue publishes the county rates by year.
Pennsylvania has a local earned income tax (EIT), administered under Act 32.

Check city and county rules as well as the state’s.

Moving, remote clients and work in other states

Your state of residence generally taxes all of your income, including fees from clients in other states. New York taxes residents on all income no matter where it is earned, and Utah taxes residents on income earned in other states.

Other states can tax income they treat as sourced there. New York taxes nonresidents on New York-source income, which includes earnings from work performed in the state. How a self-employed person’s business income is sourced differs from state to state, so multi-state work can mean nonresident returns. When two states tax the same income, the home state typically allows a credit for tax paid to the other; New York and Utah both do.

Moving during the year usually means part-year resident returns in both states: each state taxes your income while you lived there and, afterward, income sourced to it. Residency tests go beyond a mailing address. New York, for example, can treat someone domiciled elsewhere as a resident if they keep a permanent place of abode in the state for substantially all of the year and spend 184 days or more there.

Example: $80,000 of profit, no-tax state vs. flat 4% state

This is a simplified comparison. It assumes the same $80,000 net profit in both states, applies the rate to the full $80,000, and ignores state deductions, exemptions, credits and local taxes.

Simplified comparison	No-income-tax state	Flat 4% state
State income tax	$0	$3,200
Four equal state payments	$0	$800 each

The rough difference is $3,200 a year. Federal self-employment tax on the $80,000 is the same in both states.

The real gap is usually smaller, because the state base is below profit. Mississippi’s 2026 rate is 4%, for example, but it applies only to taxable income above $10,000. How much to set aside for tax covers folding a state estimate into a holding percentage.

This page is general information, not tax advice.

Sources

Figures on this page are general-information estimates, not professional advice. Check the stated assumptions and any linked sources, and use a qualified professional where the decision requires one.