Guide
State TaxesContent CreatorSelf-EmploymentUSAState Taxes for Content Creators: What You Owe by State
Federal taxes are only part of the picture. Most states also tax your content creation income, and the rates vary dramatically — from 0% in states like Texas and Florida to over 13% in California. Understanding your state tax obligations can save you thousands and help you make informed decisions about where to live and operate your business.
Last updated: February 26, 2026
Step-by-Step Guide
Identify your state tax obligations
Determine your state's income tax rate, filing requirements, and whether you need to make quarterly estimated payments. Check your state's department of revenue website.
Calculate your state tax liability
Apply your state's tax rates to your net business income from Schedule C. Remember that state definitions of taxable income may differ from federal.
Pay state estimated taxes quarterly
Most states follow similar quarterly schedules as the IRS. Set up payments through your state's online payment portal.
File your state return by the deadline
Most states have the same April 15 filing deadline as federal. Some states offer automatic extensions. File electronically for faster processing.
Evaluate relocation if tax savings are significant
If you earn $100K+ and live in a high-tax state, calculate the annual savings of relocating to a no-tax state. Factor in cost of living differences and quality of life.
States with no income tax
Nine states have no state income tax:
1. Alaska
2. Florida
3. Nevada
4. New Hampshire (taxes interest and dividends only, not business income)
5. South Dakota
6. Tennessee
7. Texas
8. Washington
9. Wyoming
Living in a no-income-tax state saves a full-time content creator earning $100,000 net profit approximately $5,000-$13,000 per year compared to high-tax states like California or New York.
However, no-income-tax states may have other costs:
- Texas and Florida: Higher property taxes and sales taxes
- Washington: No income tax but has a Business and Occupation (B&O) tax on gross receipts
- Nevada: Higher sales tax rates, commerce tax for businesses over $4M
States with flat income tax (simpler filing):
- Colorado: 4.4%
- Illinois: 4.95%
- Indiana: 3.05%
- Michigan: 4.25%
- North Carolina: 4.5%
- Pennsylvania: 3.07%
- Utah: 4.65%
Flat-tax states charge the same rate regardless of income, which simplifies calculations.
High-tax states and how they affect creators
Highest state income tax rates (2026 approximate top brackets):
- California: 13.3% (highest in the nation, top bracket over $1M)
- Hawaii: 11%
- New Jersey: 10.75%
- Oregon: 9.9%
- Minnesota: 9.85%
- New York: 10.9% (plus NYC tax of 3.876% for NYC residents, totaling ~14.8%)
- Vermont: 8.75%
- Iowa: 8.53%
- Wisconsin: 7.65%
California-specific considerations for creators:
- 13.3% top marginal rate on income over $1M (9.3% on income over ~$68K)
- LLC franchise tax: $800/year minimum, regardless of income
- California taxes worldwide income if you are a resident
- Many creators relocate to Nevada, Texas, or Florida specifically to avoid CA taxes
New York City-specific considerations:
- State tax up to 10.9% PLUS city tax up to 3.876%
- Combined top rate of ~14.8% is the highest effective rate for any US city
- NYC Unincorporated Business Tax (UBT) of 4% on net income over $95,000 for sole proprietors — this hits content creators hard
Impact on a $200,000 net profit creator:
- Texas/Florida: $0 state tax
- Colorado (flat): ~$8,800
- California: ~$15,000-$18,000
- New York City: ~$22,000-$26,000 (state + city + UBT)
Multi-state issues and relocation considerations
Multi-state filing:
You may owe taxes in multiple states if:
- You moved to a new state mid-year (file part-year returns in both states)
- You earn income from a source in another state (rare for creators, but possible with live events or filming)
- You have nexus in another state through employees or physical presence
Most content creators only file in their state of residence because content creation income is generally sourced to where the work is performed, not where the viewers are.
Relocation tax planning:
Many successful creators relocate from high-tax states to low or no-tax states. Before moving:
- Establish genuine domicile in the new state (driver's license, voter registration, bank accounts)
- Spend more than 183 days in the new state
- Cut ties with the old state (sell or terminate your lease, move your business address)
- California is especially aggressive about auditing people who claim to have left — the Franchise Tax Board actively investigates former residents who moved to no-tax states
State estimated tax payments:
Most states with income tax require quarterly estimated payments on schedules similar to the IRS. Check your state's department of revenue for specific deadlines, thresholds, and payment methods.
State sales tax on digital products:
If you sell courses, templates, or digital products, some states charge sales tax on digital goods. Rules vary dramatically by state. Use a service like TaxJar or Avalara if you sell digital products nationwide.
Disclaimer: This is general information, not tax advice. State tax laws are complex and change frequently. Consult a CPA licensed in your state for specific guidance.
Pro Tips
- State taxes are deductible on federal Schedule A (SALT deduction) but are capped at $10,000 — this limits the federal tax benefit of high state taxes
- If you relocate from California, maintain meticulous records proving your new domicile — California's Franchise Tax Board is known for aggressively auditing former residents
- Washington state has no income tax but does have a Business and Occupation (B&O) tax on gross receipts — this can surprise creators who move there
- Some states allow additional deductions not available on the federal return — review your state's unique deductions and credits
- If you sell digital products, research your state's sales tax rules for digital goods — failing to collect required sales tax creates liability