Self-employment in the United States is rising rapidly, with full-time self-employment reaching record levels in recent years. As more Americans work independently, location can play a major role in determining how far their income goes. Unlike traditional employees, self-employed professionals must cover the full cost of taxes, retirement savings, and health insurance without employer contributions.
New data from Investopedia (February 2026) found that the typical American freelancer now earns just shy of six figures, at $99,230 per year on average. Using this benchmark as a contemporary snapshot of self-employed earnings, Sigma Tax Pro has conducted a new ranking to reveal the best and worst U.S. cities for self-employed professionals earning $100,000, based on 14 factors across taxes, living costs, and lifestyle categories.
To identify where a $100,000 income stretches the furthest, Sigma Tax Pro analyzed 100 of the largest U.S. cities by population, examining estimated monthly federal, state, and local tax liabilities for a self-employed professional alongside core living costs such as rent, utilities, internet, mobile plans, and gym memberships.
Cities were then compared and ranked based on overall affordability, work infrastructure, and quality-of-life factors to determine the best and worst U.S. cities for self-employed earners making $100,000 annually.
Texas dominates the ranking, with 14 cities placing in the top ten, highlighting the advantage of lower living costs and the absence of state personal income tax. Florida residents also benefit from no state personal income, helping earn three of its cities a spot in the top 20.
Both states, Florida and Texas, earn first spot in the Income Taxes Rank due to this very reason, alongside states such as Tennessee, Wyoming, and Nevada, which, among others, have less income tax implication, increasing take-home for self-employed earners.
| Overall Ranking | City | Overall Score | Cost of Living Rank | Income Taxes Rank* | Working Factors Rank | Living Factors Rank |
| 1 | Laredo. TX | 86.56 | 7 | 1 | 59 | 9 |
| 2 | Lubbock. TX | 83.18 | 5 | 1 | 44 | 38 |
| 3 | Plano. TX | 82.74 | 19 | 1 | 23 | 15 |
| 4 | El Paso. TX | 82.66 | 3 | 1 | 49 | 48 |
| 5 | Port St. Lucie, FL | 81.82 | 36 | 1 | 46 | 6 |
| 6 | Frisco. TX | 80.97 | 53 | 1 | 37 | 2 |
| 7 | Arlington. TX | 79.67 | 34 | 1 | 41 | 18 |
| 8 | Garland. TX | 79.62 | 62 | 1 | 42 | 5 |
| 9 | Corpus Christi. TX | 79.17 | 4 | 1 | 61 | 86 |
| 10 | Irving. TX | 79.15 | 28 | 1 | 40 | 24 |
| 11 | Glendale, AZ | 78.91 | 16 | 31 | 77 | 1 |
| 12 | Jacksonville, FL | 78.48 | 37 | 1 | 14 | 29 |
| 13 | McKinney. TX | 78.36 | 54 | 1 | 53 | 11 |
| 14 | Houston. TX | 77.43 | 43 | 1 | 3 | 54 |
| 15 | San Antonio. TX | 76.45 | 31 | 1 | 12 | 66 |
| 16 | St. Petersburg, FL | 75.36 | 69 | 1 | 25 | 17 |
| 17 | Fort Worth. TX | 75.36 | 47 | 1 | 22 | 41 |
| 18 | Dallas. TX | 74.86 | 63 | 1 | 4 | 46 |
| 19 | Henderson, NV | 73.96 | 33 | 1 | 58 | 79 |
| 20 | Fort Wayne, IN | 73.49 | 6 | 38 | 76 | 34 |
*Multiple cities rank 1st for the Income Taxes Rank because they have identical tax implications, resulting in the same income tax deductions for earners.
Laredo ranks as the best city for self-employed earners making $100,000, thanks to its low cost of living and supportive working conditions. Affordable housing and everyday expenses help independent professionals keep more of their income compared with many larger U.S. cities.
The city also benefits from strong internet connectivity and relatively low crime rates, helping it perform well for living factors and making Laredo an attractive option for independent professionals looking to balance affordability with quality of life.
Lubbock is the second-best city for self-employed earners making $100,000, with the city’s residents known for being youthful, hardworking, and friendly. While the city is remote, it benefits from a warm, sunny climate and a bustling bar and restaurant scene according to users on the popular /howislivingthere subreddit.
As the third best city in the ranking, Plano is a strong option for self-employed professionals, scoring well across several categories, particularly living factors. While living costs are slightly higher than in some other cities in the study, low crime rates, strong availability of coworking spaces, and fast internet speeds help make Plano an attractive choice for independent workers.
At the other end of the ranking are cities where high taxes and living costs significantly reduce take-home income.
| Overall Ranking | City | Overall Score | Cost of Living Rank | Income Taxes Rank | Working Factors Rank | Living Factors Rank |
| 100 | New York, NY | 17.92 | 100 | 99 | 1 | 47 |
| 99 | Portland, OR | 38.82 | 78 | 100 | 60 | 65 |
| 98 | Boston, MA | 40.74 | 99 | 78 | 13 | 42 |
| 97 | Jersey City, NJ | 42.54 | 97 | 41 | 21 | 85 |
| 96 | San Francisco, CA | 42.61 | 98 | 54 | 11 | 28 |
| 95 | San Jose, CA | 45.22 | 96 | 54 | 35 | 19 |
| 94 | Washington, DC | 45.94 | 92 | 83 | 19 | 43 |
| 93 | Honolulu, Hi | 46.05 | 89 | 95 | 98 | 7 |
| 92 | Baltimore, MD | 47.58 | 66 | 98 | 17 | 60 |
| 91 | Minneapolis, MN | 47.87 | 51 | 87 | 95 | 96 |
| 90 | Philadelphia, PA | 48.13 | 68 | 97 | 30 | 64 |
| 89 | San DiegoCA | 48.25 | 95 | 54 | 9 | 13 |
| 88 | Chicago, IL | 50.54 | 86 | 76 | 6 | 82 |
| 87 | Detroit, MI | 50.89 | 24 | 96 | 80 | 93 |
| 86 | Cleveland, OH | 51.69 | 45 | 90 | 85 | 75 |
| 85 | Irvine, CA | 51.86 | 93 | 54 | 20 | 8 |
| 84 | Arlington, VA | 52.76 | 87 | 54 | 27 | 30 |
| 83 | Denver, CO | 53.69 | 77 | 43 | 7 | 94 |
| 82 | Riverside, CA | 54.51 | 82 | 54 | 52 | 49 |
| 81 | Los Angeles, CA | 54.55 | 91 | 54 | 2 | 20 |
New York ranks last overall in the study, largely due to its extremely high living costs. While the city performs strongly for working factors thanks to the wide availability of coworking spaces and fast internet speeds, its overall affordability significantly lowers its position in the ranking.
With only average scores across living factors, the high cost of everyday expenses leaves ‘The City That Never Sleeps’ trailing behind other major U.S. cities for self-employed earners.
Portland ranks second-to-last overall, recording the highest tax burden of any city analyzed. While everyday living costs in Portland are lower than some other major cities in the study, these higher state and local taxes mean a bigger share of earners’ $100,000 incomes go straight to the tax bill, ultimately dragging Portland down the standings.
Boston ranks third from last in the study. The city’s high cost of living plays a major role in its lower placement, with housing and everyday expenses putting pressure on workers’ $100,000 incomes.
However, Boston performs strongly in the working factors category, reflecting its reputation as a global hub for industries such as biotech, finance, and higher education.
“Self-employed professionals face a far more complex tax picture than traditional employees,” said Ian Gardner, Director at Sigma Tax Pro. “Between self-employment taxes, state and local obligations, and rising living costs, small decisions can have a big impact. Knowledgeable tax preparers can help independent earners navigate those challenges, maximize legitimate deductions, and ensure they keep more of what they earn year after year.”
To rank cities for their overall attractiveness for self-employed professionals, Sigma Tax Pro analyzed the 100 most populated cities in the United States using a standardized $100,000 annual income scenario.
Each city was evaluated against 14 metrics across four categories: cost of living, tax factors, working factors, and living factors. The metrics were normalized to a 0–100 scale, and category scores were weighted and combined to produce the final overall score. Cities with insufficient data across key metrics were excluded from the final ranking.
The four weighted categories included:
