every state, all the 1099 rules

State tax overview

Every state has different rules for 1099 income, sales tax, and marketplace facilitator reporting. Some states have no income tax. Others have surtaxes on high earners. Here's the full breakdown for all 50 states plus DC.

Key terms:

• State income tax rate: Tax bracket range for residents. Single rates mean flat tax.
• SE surtax: Additional self-employment tax. Most states follow federal SE rules; a few add their own.
• 1099 threshold: Income level that triggers reporting to state. Nearly all now use $600+.
• Sales tax: If you sell goods, you may collect sales tax (varies by state and product type).
• Marketplace facilitator: Etsy, Shopify, PayPal, etc. collect and remit sales tax on your behalf in most states.

All 50 states + DC

Click column headers to sort by state name, tax rate, or surtax.

States with no income tax

These 9 states (plus NH with limited tax) have no income tax on 1099 business income:

• Alaska — No income tax, no sales tax
• Florida — No income tax (but sales tax)
• Nevada — No income tax (but sales tax)
• South Dakota — No income tax (but sales tax)
• Tennessee — No income tax (but sales tax)
• Texas — No income tax (but sales tax)
• Washington — No income tax (7% capital gains tax on long-term gains)
• Wyoming — No income tax, no sales tax
• New Hampshire — No income tax on wages; only on interest and dividend income

Highest tax states

If you're a high earner ($150k+), these states will take the biggest bite:

• California: Up to 13.3% state income tax + 1% surtax on income over $1M
• Hawaii: Up to 11% income tax
• New Jersey: Up to 10.75% income tax
• New York: Up to 10.9% state tax + 4% NYC unincorporated business tax (UBT) if in NYC
• Oregon: Up to 9.9% income tax
• Vermont: Up to 8.75% income tax
• Minnesota: Up to 9.85% income tax

Marketplace facilitator rules

Nearly every state now has a "marketplace facilitator" law requiring platforms (Etsy, Depop, Shopify, PayPal, etc.) to collect and remit sales tax on your behalf. This is good news for you: you don't have to file sales tax returns in those states; the platform does.

Exceptions: Delaware, Montana, and New Hampshire don't have a sales tax, so MF rules don't apply.

What you need to do:

• Tell your platform your state (it's usually auto-detected or on your profile)
• Let the platform handle sales tax collection
• You still report the gross sales (pre-tax) on your Schedule C
• Keep records showing the platform collected the tax

Special cases

Remote workers

If you live in California but have a client in Texas, you file California taxes (based on where you live and work, not where the client is). The exception: if you travel and work in another state for an extended period, that state may want to tax you. Consult a CPA for multi-state situations.

NYC unincorporated business tax (UBT)

If you do business in New York City (even if you don't live there), you owe NYC UBT on net income. The rate is 4% for most businesses. This stacks on top of federal, state, and NYC income tax. It's brutal.

California FTB surtax

If your AGI exceeds $1 million, California adds a 1% "mental health tax" (officially Proposition 63 tax). It's temporary but keeps getting extended.

Washington capital gains tax

Washington has no income tax but does tax long-term capital gains at 7% on gains over $250k. If you sell a digital product or business asset for big gain, you'll owe. Most 1099 income isn't capital gains, so this usually doesn't apply to creators.

Bottom line

Your state tax burden depends on where you live and work. If you're in a no-income-tax state (TX, FL, NV, WY), you have a significant advantage. If you're in California or New York, you'll owe both state and potentially city taxes on top of federal and SE tax.

If you're considering moving for tax reasons, remember that state income tax is just one factor. Cost of living, healthcare, and quality of life matter too. But for creators with high income, moving to TX or FL can save $10k–$50k+ annually.