Federal self-employment tax is the same in every state, but state income tax on 1099 earnings is not. On $40,000 of gig earnings in 2026, a single driver who tracks mileage owes about $3,207 in the nine states with no income tax and up to $5,024 in Hawaii. The difference is state and local tax, which ranges from $0 to about $2,071 at this income; Hawaii’s figure includes its 4.5% general excise tax.
Self employment tax by state: what a $40,000 gig worker owes
| State | Total tax on $40,000 | Of which state and local | Set aside per $100 |
|---|---|---|---|
| Alabama | $3,997 | $790 | $9.99 |
| Alaska | $3,207 | $0 | $8.02 |
| Arizona | $3,526 | $319 | $8.82 |
| Arkansas | $3,817 | $610 | $9.54 |
| California | $3,239 | $31 | $8.10 |
| Colorado | $3,427 | $220 | $8.57 |
| Connecticut | $3,329 | $122 | $8.32 |
| Delaware | $3,735 | $528 | $9.34 |
| District of Columbia | $3,407 | $200 | $8.52 |
| Florida | $3,207 | $0 | $8.02 |
| Georgia | $3,680 | $472 | $9.20 |
| Hawaii | $5,024 | $2,071 | $12.56 |
| Idaho | $3,217 | $10 | $8.04 |
| Illinois | $4,107 | $899 | $10.27 |
| Indiana | $3,800 | $593 | $9.50 |
| Iowa | $3,357 | $150 | $8.39 |
| Kansas | $3,641 | $433 | $9.10 |
| Kentucky | $3,828 | $621 | $9.57 |
| Louisiana | $3,454 | $247 | $8.64 |
| Maine | $3,639 | $432 | $9.10 |
| Maryland | $4,282 | $1,075 | $10.71 |
| Massachusetts | $4,042 | $835 | $10.11 |
| Michigan | $3,853 | $646 | $9.63 |
| Minnesota | $3,518 | $310 | $8.79 |
| Mississippi | $3,319 | $112 | $8.30 |
| Missouri | $3,297 | $89 | $8.24 |
| Montana | $3,442 | $235 | $8.61 |
| Nebraska | $3,418 | $210 | $8.54 |
| Nevada | $3,207 | $0 | $8.02 |
| New Hampshire | $3,207 | $0 | $8.02 |
| New Jersey | $3,517 | $310 | $8.79 |
| New Mexico | $3,282 | $75 | $8.21 |
| New York | $3,752 | $544 | $9.38 |
| North Carolina | $3,540 | $333 | $8.85 |
| North Dakota | $3,207 | $0 | $8.02 |
| Ohio | $3,207 | $0 | $8.02 |
| Oklahoma | $3,611 | $404 | $9.03 |
| Oregon | $4,224 | $1,016 | $10.56 |
| Pennsylvania | $3,904 | $697 | $9.76 |
| Rhode Island | $3,382 | $174 | $8.45 |
| South Carolina | $3,481 | $273 | $8.70 |
| South Dakota | $3,207 | $0 | $8.02 |
| Tennessee | $3,207 | $0 | $8.02 |
| Texas | $3,207 | $0 | $8.02 |
| Utah | $3,228 | $21 | $8.07 |
| Vermont | $3,480 | $273 | $8.70 |
| Virginia | $3,648 | $441 | $9.12 |
| Washington | $3,207 | $0 | $8.02 |
| West Virginia | $3,699 | $491 | $9.25 |
| Wisconsin | $3,437 | $229 | $8.59 |
| Wyoming | $3,207 | $0 | $8.02 |
Assumptions: Single filer, no other income, tips are 25% of earnings, $1.80 earned per business mile, other expenses 2% of earnings, before tax credits, 2026 rules. Maryland includes a 3% county tax and Hawaii its 4.5% general excise tax; other local taxes are not included.
State tax calculators for delivery drivers
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
States with no income tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Gig workers there pay only federal income tax and self-employment tax.
Why self-employment tax is the same everywhere
Self-employment tax is a federal tax: 15.3% of 92.35% of your profit in every state. What changes from state to state is income tax, from nothing to more than 10% at the top, plus local taxes in some places.