1099 Tax by State

The example freelancer

Every row is the same person, so only the state changes. A single filer earns $120,000 of 1099 income, has $20,000 of business expenses and so $100,000 of net profit, has no other income, and takes the qualified business income deduction. That is the same profit the state pages use in their examples. The example also assumes the business isn't a specified service business, such as consulting, law or accounting; at this income it makes no difference, because taxable income is well below the $201,750 at which the QBI deduction starts to shrink for those businesses.

Federal tax is the same in every state: $14,129.55 of self-employment tax and $8,235.00 of federal income tax, $22,364.55 in all. The table shows what each state adds on top. The 1099 tax calculator explains the federal part and works out your own numbers.

How each state's tax is calculated

State income tax comes from the same engine as the calculator and the state pages. It starts from federal adjusted gross income, the profit minus the deductible half of self-employment tax, then applies the state's standard deduction, personal exemptions, credits and brackets for 2026. The brackets come from the Tax Foundation's table of 2026 state income tax rates, with later laws that apply to all of 2026 added on top; each state page cites its own. The effective state rate is the state's tax, including New Hampshire's business taxes, divided by the $100,000 profit.

9 states have no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Of the other 42, counting D.C., 15 tax income at a single flat rate and 27 use graduated brackets. On this profit, Oregon takes the most, $7,302.21 (7.3%), and among states with an income tax North Dakota takes the least, $553.02. A different profit or filing status changes the order, so use the calculator for your own income.

New Hampshire's business taxes

New Hampshire has no personal income tax but taxes business profits, sole proprietors included. Its Business Profits Tax applies once gross business income is over $109,000, so this example uses gross income as well as profit: with $120,000 of 1099 income, the 7.5% tax on profit above the $75,000 compensation deduction comes to $1,875.00. The Business Enterprise Tax doesn't apply at this size. The New Hampshire page explains both taxes and the assumptions behind them.

What the table leaves out

Local income taxes aren't included. The note column flags the 17 states where the Tax Foundation's data shows county or city income taxes, with the average rate where it publishes one. Other state taxes on businesses, such as Washington's business and occupation tax or Tennessee's business tax, aren't in the numbers either; their state pages explain them. Neither are retirement contributions, health insurance deductions or credits beyond the ones each state gives everyone, any of which lowers the tax for a real freelancer.

How we keep it current

The numbers are computed when the site is built, from the same code the calculator runs, so the table, the CSV and the state pages always agree; a test checks that they do. State brackets are rebuilt each February from the Tax Foundation's table and updated after legislative sessions, and federal amounts each fall when the IRS publishes the next year's figures. Our testing methodology explains how the engine is checked against an independent model.

Cite this data

Suggested citation:

Passbion, "1099 Tax by State," 2026, https://passbion.com/data/1099-tax-by-state (updated October 5, 2026).

Free to reuse under CC BY 4.0 — please credit Passbion and link to this page.

The link, https://passbion.com/data/1099-tax-by-state, lets readers check the method and see the latest update.