Freelancing is rapidly becoming one of the most popular career choices in the United States. Whether it’s due to the flexibility, autonomy, or the potential for diverse income streams, freelancing offers something for almost everyone.
But not all states are equally suited for this type of work. In 2025, a variety of factors such as cost of living, access to a strong digital infrastructure, tax benefits, and a thriving freelance community will play key roles in determining the best places for freelancers to succeed.
The 10 Best States for Freelancers to Succeed in 2025
1. Texas
Texas continues to be a hotbed for freelancers due to its low taxes, affordable living costs, and a growing tech and business ecosystem. Cities like Austin, Dallas, and Houston are home to a plethora of tech startups and large corporations, creating ample freelance opportunities in software development, design, marketing, and more.
Key Benefits:
- No state income tax: Texas is one of the few states without a state income tax, which means freelancers get to keep more of their earnings.
- Low cost of living: Compared to states like California or New York, Texas offers a much more affordable lifestyle.
- Vibrant tech and startup scene: Austin, often dubbed “Silicon Hills,” has become a major hub for tech entrepreneurs and freelancers alike.
2. California
California is home to some of the most dynamic freelance communities, particularly in tech, media, and entertainment. The state’s large economy and network of creative industries make it ideal for freelancers looking to tap into high-end projects and large networks.
Key Benefits:
- Thriving creative and tech industries: From Silicon Valley to Hollywood, California offers unmatched opportunities for freelance tech and media professionals.
- Access to a wide market: The sheer size and diversity of the population means there’s a demand for almost every type of freelance service.
- Networking opportunities: California’s major cities host frequent conferences, networking events, and freelance meetups.
3. Colorado
Known for its entrepreneurial spirit, Colorado offers an excellent quality of life, with a blend of affordable living and robust opportunities. Cities like Denver and Boulder are hot spots for remote workers, freelancers, and startups.
Key Benefits:
- Growing tech hub: Denver and Boulder are home to rapidly growing tech scenes and creative industries.
- Work-life balance: The outdoor lifestyle and emphasis on wellness make Colorado attractive to freelancers looking for a balance between work and personal time.
- Strong support for remote work: Many businesses in Colorado are remote-first, making it easier for freelancers to connect and collaborate.
4. Florida
Florida offers a combination of low taxes, affordable living, and an active freelance community. Popular cities like Miami, Tampa, and Orlando are home to freelancers in a variety of industries such as design, marketing, and software development.
Key Benefits:
- No state income tax: Just like Texas, Florida’s lack of income tax is a huge perk for freelancers looking to maximize their earnings.
- Low cost of living: Outside of cities like Miami, Florida offers affordable living options.
- Freelance-friendly climate: Florida’s year-round warm weather makes it an ideal location for remote workers and digital nomads.
5. New York
New York is a global hub for industries like finance, media, and technology, making it a fantastic location for freelancers in these fields. While the cost of living in NYC can be high, other parts of the state, such as upstate New York, offer more affordable options with proximity to major business centers.
Key Benefits:
- Networking and business opportunities: New York City’s immense professional network provides unparalleled opportunities for collaboration and growth.
- Cultural and creative hub: If you’re a freelancer in media, marketing, or arts, New York’s creative atmosphere is a major draw.
- Access to global markets: With its major business and media centers, New York is a great place for freelancers to connect with high-profile clients and projects.
6. Washington
Known for being home to major companies like Microsoft, Amazon, and a growing number of tech startups, Washington State has become an ideal place for freelancers in the tech, marketing, and creative industries.
Key Benefits:
- Thriving tech industry: Seattle’s tech ecosystem provides opportunities for freelancers in coding, software development, and web design.
- High-quality infrastructure: Washington has one of the best broadband infrastructures in the country, crucial for freelancers who rely on stable internet connections.
- Business-friendly environment: The state has a robust business climate with numerous resources for independent contractors.
7. Nevada
Nevada’s low taxes and business-friendly environment make it a solid choice for freelancers. The state’s economy is diverse, with opportunities in industries like technology, entertainment, and tourism.
Key Benefits:
- No state income tax: Another tax-friendly state for freelancers.
- Affordable cost of living: Outside of Las Vegas, many areas in Nevada offer affordable living options.
- Dynamic tourism and entertainment sectors: Freelancers in the entertainment, hospitality, and creative sectors will find abundant opportunities.
8. Utah
Utah is becoming known as one of the best places to live and work for freelancers, particularly in tech and remote work. Cities like Salt Lake City and Provo are known for their vibrant startup cultures and high quality of life.
Key Benefits:
- Growing tech ecosystem: Salt Lake City, also known as “Silicon Slopes,” is a major hub for tech startups.
- Work-life balance: The state offers beautiful natural surroundings and a low cost of living, which appeals to freelancers seeking a balanced lifestyle.
- Strong community support: Utah has a close-knit entrepreneurial community that’s ideal for freelancers looking to grow their businesses.
9. Georgia
Georgia, particularly Atlanta, has become a booming hub for freelancers in a wide range of industries, from tech to marketing to creative arts. The state’s affordable cost of living and diverse business opportunities make it an attractive option.
Key Benefits:
- Thriving business hub: Atlanta is a major economic center, with numerous opportunities for freelancers in fields like marketing, software, and content creation.
- Affordable living: Compared to other major cities, Atlanta’s living costs are relatively low.
- Rich cultural scene: Georgia’s diverse culture provides a wealth of opportunities for freelancers in the arts, entertainment, and creative fields.
10. North Carolina
North Carolina is increasingly recognized for its affordable cost of living, robust tech and business sectors, and growing freelance community. Cities like Raleigh and Charlotte are emerging as attractive destinations for remote workers and independent contractors.
Key Benefits:
- Low cost of living: North Carolina is relatively affordable, particularly when compared to places like California or New York.
- Tech and research opportunities: The Research Triangle area (Raleigh, Durham, Chapel Hill) is a top hub for tech professionals and entrepreneurs.
- Ideal climate: Mild weather and outdoor recreational opportunities make it a great place for a balanced lifestyle.
READ ALSO: 10 Ways To Get Clients As A Freelancer In 2025
FAQs
What factors make a state good for freelancers?
The best states for freelancers offer a combination of low taxes, affordable living, strong job markets, and access to a thriving community. Infrastructure (such as high-speed internet), networking opportunities, and support for remote work are also important factors.
Can freelancers work in any state?
Yes, freelancers can technically work from anywhere, but certain states may offer more attractive financial and business benefits, such as lower taxes or stronger freelance communities, which can help their success.
What is the most important factor for freelancers when choosing a state?
While different freelancers may prioritize different factors, many value low taxes, affordable living, and strong internet infrastructure as key factors in choosing a location.
How does the cost of living affect freelancers?
The cost of living directly impacts a freelancer’s ability to save money and reinvest in their business. States with lower living costs allow freelancers to keep more of their earnings and enjoy a better quality of life.
Are there any downsides to freelancing in these states?
While these states offer many benefits, they may also come with challenges such as competition, lack of healthcare benefits, or a higher cost of business-related expenses (e.g., insurance). It’s important to weigh the pros and cons of each location based on your personal and professional needs.
In 2025, freelancers have a wide variety of states to choose from. Ultimately, the best state for you depends on your industry, financial situation, and lifestyle preferences. Whether you prioritize low taxes, a strong tech scene, or simply the best work-life balance, these states are leading the way for freelancers to thrive.