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About a dozen states tax income at a single flat rate. For a freelancer, that makes state tax easy to estimate: take the rate, apply it to roughly your profit, and add it to your federal bill. This page lists the 2026 flat rates, each checked against the state revenue department, and shows what they mean for 1099 income.
If you live in Texas, Florida, or another state with no income tax on earnings, see 1099 taxes in no-income-tax states instead.
In short: 2026 flat state income tax rates for freelancers in Illinois, North Carolina, Pennsylvania, Georgia, Michigan and more, with official sources and a $75k example.
2026 flat state income tax rates
| State | 2026 rate | Notes |
|---|---|---|
| Arizona | 2.5% | Flat rate for all income levels. |
| Colorado | 4.4% | Starts from federal taxable income. |
| Georgia | 4.99% | Reduced for 2026; standard deduction $15,000 single / $30,000 joint. |
| Illinois | 4.95% | Personal exemption instead of a standard deduction. |
| Indiana | 2.95% | Plus county income tax, which varies by county. Scheduled to drop to 2.90% in 2027. |
| Iowa | 3.8% | Flat since 2025. |
| Kentucky | 3.5% | Many cities and counties add occupational license taxes. |
| Louisiana | 3% | Flat for tax years beginning January 1, 2025 or later. |
| Michigan | 4.25% | Some cities (e.g., Detroit) levy their own income tax. |
| Mississippi | 4% over $10,000 | The first $10,000 of taxable income is untaxed. Scheduled to fall to 3.75% in 2027. |
| North Carolina | 3.99% | Down from 4.25% in 2025. |
| Pennsylvania | 3.07% | No standard deduction. Most municipalities add a local earned income tax. |
| Utah | 4.45% | Down from 4.5% in 2025. |
Each rate is linked in the sources list at the bottom. States change rates often, sometimes mid-year: Georgia and Utah both cut their 2026 rates after the year began. Check your state’s page before you rely on a number.
Not on the list: Idaho (flat 5.3% in 2025; we couldn’t confirm the 2026 rate) and Ohio (a single rate above an exempt amount, not a pure flat tax).
What a $75,000 freelancer pays in each state
Single filer with $75,000 of net profit and no other income. Federal tax (self-employment tax plus income tax, 2026) is about $15,495. The state column is a simple upper-end estimate: the flat rate × $75,000 (× $65,000 in Mississippi). State exemptions and deductions will usually bring the real number down a bit, and local taxes (see below) can push it up.
| State | State tax (≈ upper end) | Federal + state | Share of profit | Calculator |
|---|---|---|---|---|
| Arizona | $1,875 | $17,370 | 23.2% | Try it |
| Colorado | $3,300 | $18,795 | 25.1% | Try it |
| Georgia | $3,743 | $19,237 | 25.6% | Try it |
| Illinois | $3,713 | $19,207 | 25.6% | Try it |
| Indiana | $2,213 | $17,707 | 23.6% | Try it |
| Iowa | $2,850 | $18,345 | 24.5% | Try it |
| Kentucky | $2,625 | $18,120 | 24.2% | Try it |
| Louisiana | $2,250 | $17,745 | 23.7% | Try it |
| Michigan | $3,188 | $18,682 | 24.9% | Try it |
| Mississippi | $2,600 | $18,095 | 24.1% | Try it |
| North Carolina | $2,993 | $18,487 | 24.6% | Try it |
| Pennsylvania | $2,303 | $17,797 | 23.7% | Try it |
| Utah | $3,338 | $18,832 | 25.1% | Try it |
The “Try it” links open the 1099 tax calculator with that state’s rate filled in, so you can change the profit, filing status, and W-2 wages.
Try the calculator1099 Tax Calculator (2026)Federal income tax, self-employment tax, and your state rate on 1099 income, using 2026 IRS figures.OpenLocal income taxes can add more
Several flat-tax states let cities, counties, or school districts levy their own income tax on residents or on work done there. The big ones for freelancers:
- Pennsylvania: most municipalities and school districts levy a local earned income tax, which usually applies to net profits of the self-employed.
- Indiana: every county sets a county income tax rate.
- Kentucky: many cities and counties charge occupational license taxes, often on net profits.
- Michigan: some cities, including Detroit, have a city income tax.
Check your city or county’s website, or your state’s local tax lookup. Put the combined state and local rate into the calculator.
State estimated payments
Most of these states expect self-employed residents to make quarterly estimated payments too, using their own forms (for example, Illinois IL-1040-ES, Colorado DR 0104EP, Arizona 140ES). Due dates often line up with the federal ones (April 15, June 15, September 15, and January 15), but not always, and state safe-harbor rules differ. See 2026 federal due dates and your state’s estimated tax page.
Quick way to plan
- Find your row above and add any local tax rate.
- Add that to your federal rate from how much tax on 1099 income. For most freelancers the combined total lands around 23–27% of profit.
- Move that share of each payment into a tax account, and pay federal and state estimates on schedule.
FAQ
Which states have a flat income tax in 2026?
Arizona, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Pennsylvania, and Utah (listed above), plus Idaho (5.3% in 2025). Ohio has a single rate above an exempt amount.
What is the Illinois income tax rate for 1099 income in 2026?
4.95%, the same flat rate as wages. Self-employed Illinois residents also owe federal self-employment tax and income tax.
What is North Carolina’s income tax rate in 2026?
3.99% for tax years after 2025, per the North Carolina Department of Revenue.
Do I pay Pennsylvania tax on 1099 income?
Yes. Pennsylvania taxes net profits at 3.07%, and most municipalities add a local earned income tax.
Sources
- Arizona DOR, 2026 Form 140ES
- Colorado DOR, 2026 DR 0104EP
- Georgia DOR, 2026 income tax changes
- Illinois DOR, 2026 IL-1040-ES
- Indiana DOR, rates, fees & penalties
- Iowa DOR, 2026 rates announcement
- Kentucky DOR, 2026 withholding formula
- Louisiana DOR, income tax rates FAQ
- Michigan Treasury, 2026 rate determination
- Mississippi DOR, tax rates
- NCDOR, tax rate schedules
- Pennsylvania DOR, personal income tax
- Utah State Tax Commission (4.5% for 2025, 4.45% for 2026)
- IRS Topic 554, Self-employment tax
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments)