W-2 vs 1099 by state: 2026 state income tax and break-even rates
Short answer: State income tax barely moves the W-2 vs 1099 break-even rate, because it applies to both sides. For a $100,000 W-2 offer (single, typical benefits), the 2026 break-even 1099 rate ranges from about $69.06/hr in no-income-tax states such as Alaska to $69.89/hr in California. 9 states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Assumptions: $100,000 W-2 salary, single, 40 h/week, 48 weeks, 15 days off, $550/month employer health premium, 4% 401(k) match, $480/month self-paid insurance. State rates from the Tax Foundation 2026 table (GA and UT from state sources); local taxes not included. Click a state to open the calculator.
| State | Top rate | State tax on $100k W-2 | 1099 break-even |
|---|---|---|---|
| Alaska | None | $0 | $69.06/hr |
| Florida | None | $0 | $69.06/hr |
| Nevada | None | $0 | $69.06/hr |
| New Hampshire | None | $0 | $69.06/hr |
| South Dakota | None | $0 | $69.06/hr |
| Tennessee | None | $0 | $69.06/hr |
| Texas | None | $0 | $69.06/hr |
| Washington | None | $0 | $69.06/hr |
| Wyoming | None | $0 | $69.06/hr |
| North Dakota | 2.5% | $691 | $69.22/hr |
| Arizona | 2.5% | $2,291 | $69.26/hr |
| Ohio | 2.75% | $1,968 | $69.28/hr |
| Indiana | 2.95% | $2,921 | $69.30/hr |
| Louisiana | 3% | $2,614 | $69.30/hr |
| Pennsylvania | 3.07% | $3,070 | $69.31/hr |
| Kentucky | 3.5% | $3,382 | $69.35/hr |
| Iowa | 3.8% | $3,148 | $69.37/hr |
| Arkansas | 3.9% | $3,687 | $69.38/hr |
| Mississippi | 4% | $3,268 | $69.39/hr |
| North Carolina | 3.99% | $3,481 | $69.39/hr |
| Michigan | 4.25% | $3,999 | $69.41/hr |
| Colorado | 4.4% | $3,692 | $69.42/hr |
| Oklahoma | 4.5% | $3,955 | $69.43/hr |
| Utah | 4.45% | $4,450 | $69.43/hr |
| Nebraska | 4.55% | $3,670 | $69.44/hr |
| Missouri | 4.7% | $3,763 | $69.45/hr |
| Maryland | 6.5% | $4,386 | $69.46/hr |
| Rhode Island | 5.99% | $3,148 | $69.46/hr |
| West Virginia | 4.82% | $3,885 | $69.46/hr |
| Illinois | 4.95% | $4,805 | $69.47/hr |
| New Mexico | 5.9% | $3,569 | $69.47/hr |
| Alabama | 5% | $4,735 | $69.48/hr |
| Georgia | 4.99% | $4,242 | $69.48/hr |
| Massachusetts | 9% | $4,780 | $69.48/hr |
| Idaho | 5.3% | $4,192 | $69.50/hr |
| Wisconsin | 7.65% | $3,919 | $69.50/hr |
| Connecticut | 6.99% | $3,925 | $69.52/hr |
| Kansas | 5.58% | $4,780 | $69.53/hr |
| Montana | 5.65% | $4,289 | $69.54/hr |
| Virginia | 5.75% | $4,936 | $69.55/hr |
| New York | 10.9% | $4,860 | $69.56/hr |
| South Carolina | 6% | $4,843 | $69.57/hr |
| New Jersey | 10.75% | $4,182 | $69.60/hr |
| Delaware | 6.6% | $5,259 | $69.62/hr |
| Vermont | 8.75% | $4,140 | $69.62/hr |
| Minnesota | 9.85% | $5,277 | $69.64/hr |
| Maine | 7.15% | $5,654 | $69.68/hr |
| Hawaii | 11% | $6,070 | $69.72/hr |
| District of Columbia | 10.75% | $5,532 | $69.81/hr |
| Oregon | 9.9% | $7,920 | $69.83/hr |
| California | 13.3% | $5,070 | $69.89/hr |
See the methodology for how state taxable income is computed.
FAQ
Which states have no income tax in 2026?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming do not tax wage income in 2026.
Does state tax change the W-2 vs 1099 break-even rate?
State income tax barely moves the W-2 vs 1099 break-even rate, because it applies to both sides. For a $100,000 W-2 offer (single, typical benefits), the 2026 break-even 1099 rate ranges from about $69.06/hr in no-income-tax states such as Alaska to $69.89/hr in California. 9 states have no income tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Open the W-2 vs 1099 calculator
Related: 1099 break-even rate · 2026 self-employment tax · 2026 estimated tax due dates · State comparison · Methodology & sources