Money Power Rankings · Freelance tax drag
Money Power · Career wedge · Updated July 2026
Freelance tax drag by state
Educational ranking of how much a self-employed earner keeps after approximate self-employment tax (15.3%) plus illustrative top state income-tax rates. Not tax advice. Local taxes, deductions, and filing status change real results. Download the CSV and run your own numbers.
| # | State | State top rate (illustrative) | SE tax (approx) | Combined drag | Keep rate |
|---|---|---|---|---|---|
| 1 | Alaska (AK) | 0.00% | 15.3% | 15.30% | 84.70% |
| 2 | Florida (FL) | 0.00% | 15.3% | 15.30% | 84.70% |
| 3 | Nevada (NV) | 0.00% | 15.3% | 15.30% | 84.70% |
| 4 | South Dakota (SD) | 0.00% | 15.3% | 15.30% | 84.70% |
| 5 | Tennessee (TN) | 0.00% | 15.3% | 15.30% | 84.70% |
| 6 | Texas (TX) | 0.00% | 15.3% | 15.30% | 84.70% |
| 7 | Washington (WA) | 0.00% | 15.3% | 15.30% | 84.70% |
| 8 | Wyoming (WY) | 0.00% | 15.3% | 15.30% | 84.70% |
| 9 | New Hampshire (NH) | 0.00% | 15.3% | 15.30% | 84.70% |
| 10 | North Dakota (ND) | 2.50% | 15.3% | 17.80% | 82.20% |
| 11 | Arizona (AZ) | 2.50% | 15.3% | 17.80% | 82.20% |
| 12 | Indiana (IN) | 3.05% | 15.3% | 18.35% | 81.65% |
| 13 | Pennsylvania (PA) | 3.07% | 15.3% | 18.37% | 81.63% |
| 14 | Ohio (OH) | 3.50% | 15.3% | 18.80% | 81.20% |
| 15 | Michigan (MI) | 4.25% | 15.3% | 19.55% | 80.45% |
| 16 | Louisiana (LA) | 4.25% | 15.3% | 19.55% | 80.45% |
| 17 | Colorado (CO) | 4.40% | 15.3% | 19.70% | 80.30% |
| 18 | Arkansas (AR) | 4.40% | 15.3% | 19.70% | 80.30% |
| 19 | Kentucky (KY) | 4.50% | 15.3% | 19.80% | 80.20% |
| 20 | North Carolina (NC) | 4.50% | 15.3% | 19.80% | 80.20% |
| 21 | Utah (UT) | 4.65% | 15.3% | 19.95% | 80.05% |
| 22 | Oklahoma (OK) | 4.75% | 15.3% | 20.05% | 79.95% |
| 23 | Missouri (MO) | 4.80% | 15.3% | 20.10% | 79.90% |
| 24 | Illinois (IL) | 4.95% | 15.3% | 20.25% | 79.75% |
| 25 | Mississippi (MS) | 5.00% | 15.3% | 20.30% | 79.70% |
| 26 | Alabama (AL) | 5.00% | 15.3% | 20.30% | 79.70% |
| 27 | Massachusetts (MA) | 5.00% | 15.3% | 20.30% | 79.70% |
| 28 | West Virginia (WV) | 5.12% | 15.3% | 20.42% | 79.58% |
| 29 | Georgia (GA) | 5.39% | 15.3% | 20.69% | 79.31% |
| 30 | Kansas (KS) | 5.70% | 15.3% | 21.00% | 79.00% |
| 31 | Iowa (IA) | 5.70% | 15.3% | 21.00% | 79.00% |
| 32 | Virginia (VA) | 5.75% | 15.3% | 21.05% | 78.95% |
| 33 | Maryland (MD) | 5.75% | 15.3% | 21.05% | 78.95% |
| 34 | Idaho (ID) | 5.80% | 15.3% | 21.10% | 78.90% |
| 35 | Nebraska (NE) | 5.84% | 15.3% | 21.14% | 78.86% |
| 36 | New Mexico (NM) | 5.90% | 15.3% | 21.20% | 78.80% |
| 37 | Montana (MT) | 5.90% | 15.3% | 21.20% | 78.80% |
| 38 | Rhode Island (RI) | 5.99% | 15.3% | 21.29% | 78.71% |
| 39 | South Carolina (SC) | 6.40% | 15.3% | 21.70% | 78.30% |
| 40 | Delaware (DE) | 6.60% | 15.3% | 21.90% | 78.10% |
| 41 | Connecticut (CT) | 6.99% | 15.3% | 22.29% | 77.71% |
| 42 | Maine (ME) | 7.15% | 15.3% | 22.45% | 77.55% |
| 43 | Wisconsin (WI) | 7.65% | 15.3% | 22.95% | 77.05% |
| 44 | Vermont (VT) | 8.75% | 15.3% | 24.05% | 75.95% |
| 45 | Minnesota (MN) | 9.85% | 15.3% | 25.15% | 74.85% |
| 46 | Oregon (OR) | 9.90% | 15.3% | 25.20% | 74.80% |
| 47 | New Jersey (NJ) | 10.75% | 15.3% | 26.05% | 73.95% |
| 48 | District of Columbia (DC) | 10.75% | 15.3% | 26.05% | 73.95% |
| 49 | New York (NY) | 10.90% | 15.3% | 26.20% | 73.80% |
| 50 | Hawaii (HI) | 11.00% | 15.3% | 26.30% | 73.70% |
| 51 | California (CA) | 13.30% | 15.3% | 28.60% | 71.40% |
Methodology: keep rate = 100 − (15.3 + state top marginal). Zero-income-tax states rank highest. Federal income tax is omitted so the table isolates state + SE drag for comparison. Sources: published state rate schedules and IRS SE tax framework (educational composite, retrieved mid-2026).
Next step after the math
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