Tax-Friendly States for Remote Workers in 2026

At a $100,000 remote salary (single filer, biweekly, standard deduction), the top three states for take-home pay are Alaska ($79,180), Florida ($79,180), and Nevada ($79,180). Rankings use ExactTakeHome's 2026 engine — cost of living is not included.

No income tax + no local tax = simplest for remote workers

Nine states levy no broad wage income tax. For remote workers, these states offer the simplest filing: no state return for wages, no municipal income tax in most cases. Washington is included below with a note on WA Cares and Paid Family Leave payroll deductions.

State	Take-home at $100K	Notes for remote workers
Alaska	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Florida	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Nevada	$79,180	No state income tax on wages. No modeled local wage tax statewide.
New Hampshire	$79,180	No state income tax on wages. No modeled local wage tax statewide.
South Dakota	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Tennessee	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Texas	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Vermont	$79,180	No state income tax on wages. No modeled local wage tax statewide.
Washington	$79,180	No state income tax on wages. WA Cares (0.58%) and Paid Family Leave (~0.81% employee share) may reduce net pay — not included in this estimate.
Wyoming	$79,180	No state income tax on wages. No modeled local wage tax statewide.

Simplest combination: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Vermont, Washington, Wyoming — no state income tax and no modeled local wage taxes in the ExactTakeHome engine.

States to watch: local income tax complexity

Remote workers in these states may owe city or county wage taxes on top of state income tax. Rates vary by municipality — the table flags complexity; use the state calculator with your city when available.

State	Take-home at $100K (state only)	Local tax complexity
Ohio	$77,146	Ohio has municipal income taxes in most cities, typically 1.5%–3%. Columbus, Cleveland, Toledo, and Cincinnati municipal tax is included when you select those cities. Other Ohio municipalities may have different rates not reflected in this estimate — check your city's RITA or CCA filing.
Pennsylvania	$76,110	Philadelphia residents pay a city wage tax (3.75% for residents). This calculator includes Philadelphia wage tax when you select Philadelphia. Residents of other Pennsylvania municipalities may owe local Earned Income Tax — rates vary by municipality and are not included in this estimate.
Maryland	$74,749	Maryland counties and Baltimore City charge a local income tax of 2.25%–3.2% on top of state tax. Baltimore local tax is included when you select Baltimore. County local tax for other Maryland jurisdictions is not included in this estimate.
Kentucky	$75,798	Louisville/Jefferson County and other Kentucky cities charge a local occupational tax on wages (typically 1%–2.5%). Louisville occupational tax is included when you select Louisville. Other Kentucky jurisdictions may charge occupational taxes not reflected in this estimate.
Indiana	$76,260	Indiana counties charge a local income tax (COIT/CEDIT) of 0.5%–3.38% depending on county. This county tax is not included in this estimate. Your actual take-home pay will be lower based on your county of residence.
Michigan	$74,930	Detroit and 21 other Michigan cities charge a city income tax on wages (Detroit: 2.4% residents; other cities: 1%–2%). Detroit city tax is included when you select Detroit. Taxes for other Michigan cities are not included in this estimate.
Missouri	$75,410	Kansas City and St. Louis each charge a 1% earnings tax on wages. This calculator includes Kansas City and St. Louis earnings tax when you select those cities.
New Jersey	$74,695	Newark charges a 1% payroll tax on wages earned in the city. This calculator includes Newark payroll tax when you select Newark. If you work outside Newark, no additional New Jersey local wage tax applies.

Top 10 states by take-home on $100k remote salary

Assumes single filer, biweekly pay, standard deduction, no pre-tax 401(k) or HSA. Federal and FICA are identical nationwide; ranking reflects state income tax only (local taxes not included unless noted).

Rank	State	Take-home at $100K	State rate @ $100K
1	Alaska	$79,180	0%
2	Florida	$79,180	0%
3	Nevada	$79,180	0%
4	New Hampshire	$79,180	0%
5	South Dakota	$79,180	0%
6	Tennessee	$79,180	0%
7	Texas	$79,180	0%
8	Vermont	$79,180	0%
9	Washington	$79,180	0%
10	Wyoming	$79,180	0%

What taxes follow you when you work remotely?

Federal income tax and FICA (Social Security + Medicare) apply at the same rates regardless of state. Your employer withholds based on IRS Publication 15-T tables and your Form W-4.

State income tax generally follows your state of residence when you work from home full-time. If you live in Texas and work remotely for a California company, you typically owe Texas tax (none on wages) — not California tax — unless a reciprocity agreement or Convenience of Employer rule applies.

Local taxes depend on your city or county of residence. A remote worker in Philadelphia pays Pennsylvania state tax plus Philadelphia wage tax; a remote worker in suburban PA may pay only state tax plus a lower municipal Earned Income Tax.

These are estimates for planning purposes. Multi-state situations, stock compensation, and employer-mandated office days can change your actual liability. Consult a tax professional for your specific situation.

Frequently Asked Questions

Which states are most tax-friendly for remote workers in 2026?

No-income-tax states — Texas, Florida, Nevada, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire — offer the highest take-home pay and simplest tax filing for remote workers who live and work in the same state. Washington has no income tax but deducts WA Cares and Paid Family Leave premiums from paychecks.

Do remote workers pay state tax where they live or where their employer is?

Generally, remote workers owe income tax in their state of residence — where they live and work from home. Federal income tax and FICA apply nationwide at the same rates. Some employer states (New York, Pennsylvania, Delaware, Nebraska, Arkansas) have Convenience of Employer rules that can tax remote income regardless of residence.

Why do local taxes matter for remote workers?

Even in low-tax states, city or county income taxes can reduce take-home pay. Ohio, Pennsylvania, Maryland, Kentucky, Indiana, Michigan, Missouri, and New Jersey commonly have local wage taxes that vary by municipality — a remote worker in Philadelphia or Columbus may keep less than the state-only estimate suggests.

Does this ranking include cost of living?

No. This study ranks states by engine-calculated take-home pay at $100,000 and flags local tax complexity. Cost of living, housing, and property taxes are not included. See our cost-adjusted study for rent-adjusted rankings.

Get notified when 2027 tax rates are published

No spam. Unsubscribe any time.