Top 10 States Where Freelancers Can Thrive In 2025

Many Americans worry on a daily basis about losing their jobs. As the economy tightens and industries undergo rapid changes, the workforce is turning to freelancing to earn a living. Working in a job that could end at any moment, creates stress and limits employee control over work-life balance. Research shows that two in three laid-off workers are happier building freelance careers than they were before being laid off. A study conducted by Bonus.com identified the top states where freelancers can thrive in 2025.

10 Top States Where Freelancers Can Thrive in 2025

Scientific data from Jitjatjo affirms that the flexibility trend is the driving factor behind the rise in non-traditional jobs. Workers want greater control over their lives and more free time. Sixty-three percent of employees switching from typical office hours to flexible gig work say that setting their own schedule makes gig work more attractive than a traditional office job. Plus, 44% of recently laid-off Americans have a side hustle, and nearly one in two recently laid-off Americans plan to pursue freelancing full-time instead of returning to traditional employment.

Researchers at Bonus.com analyzed ten metrics relevant to a career as a freelancer: number of freelance vacancies, income tax rate, average annual freelance earnings, coworking spaces per million, Internet speed (Mbps) and cost of living index on four factors: groceries, housing, utilities, transportation and health. The researchers scored them out of 100 in a Freelancer-Friendly Index that reveals the states where freelancers can thrive in the U.S.

Data for each of the ten factors was cleaned, checked and standardized on the same scale from zero to ten, where zero and ten represent the lowest and highest values present in the data, to allow for accurate comparison between factors. Factors for which a high score would be negative were subtracted from ten to invert their scoring.

A weighting was then assigned to each factor reflecting its importance within the analysis. Once the weighting was assigned, the total score for the factors was calculated, producing an overall index score out of 10. The top ten states, along with their total scores and average annual freelance salaries, are shown below.

1. Tennessee (score 78.20 score; $90,063 average annual freelance salary) ranks as the top state to work as a freelancer. It has low income tax rates, a relatively low cost of living and a high number of co-working spaces. With 7.2 freelance vacancies per 100,000 residents and 0.281 co-working spaces per one million residents, the cost of living index is the second lowest (88.3).
2. Texas (76.63 score; $92,448 average annual freelance salary) ranks as the second-best state for freelancers in the U.S. The state has 12.3 vacancies per 100,000 residents, no income tax and the eighth-highest internet speed at 425.9 Mbps.
3. Nevada (73.74 score; $101,047 average annual freelance salary) places third on the list of the states where freelancers can thrive. The state has no individual income tax and 24.1 freelance vacancies per 100,000 residents.
4. Virginia (69.93 score; $98,379 average annual freelance salary) ranks fourth with a score of 69.93 out of 100. The state has 11.3 freelance vacancies per 100,000 residents, 0.344 co-working spaces per one million residents and the second highest internet speed at 505.6 Mbps.
5. Missouri (69.42 score; $93,078 average annual freelance salary) ranks fifth, with has a median income tax rate of 3.5% and 6 freelance vacancies per 100,000 residents.
6. Pennsylvania (69.14 score; $99,469 average annual freelance salary) ranks sixth on the list.
7. Maryland (69 score; $96,307 average annual freelance salary) ranks seventh, with13.9 freelance vacancies in the state per 100,000 residents.
8. Colorado (68.69 score; $104,342 average annual freelance salary) boasts the highest annual salary.
9. Georgia (68.03 score; $83,788 average annual freelance salary) ranks ninth.
10. Delaware (67.21 score; $99,316 average annual freelance salary) rounds out the top ten. It has a median income tax rate of 4.4% and 59.6 freelance vacancies per 100,000 residents.

A Final Wrap On States Where Freelancers Can Thrive

It’s interesting to note that Hawaii scored lowest as a state where freelancers can thrive with a score of 20.95 out of 100. It has a median income tax rate of 6.2%, zero coworking spaces per million residents and the seventh slowest internet speed at 221.4 Mbps. The average annual salary for freelancers there is $103,096, but the state has the highest cost of living index score at 181.2.

“This study provides unique insights into the top states for pursuing a career as a freelancer, the Bonus.com researchers suggest. “Today’s globalized world and the rise of Web 3.0 technology have made it easier than ever to become your own boss and work from anywhere,” they point out. “While freelancing can be a fulfilling career choice, it is important to consider several factors carefully before deciding on the ideal state from which to embark on a freelancing career.”

Earlier this year, I spoke with Jason O’Brien, COO at TollFreeForwarding.com. O’Brien told me that freelancing is one of the most popular ways to add additional income streams. “According to our research, searches for freelance positions are expected to grow by 67% this year,” he says. “However, getting started as a freelancer isn’t always the easiest.” O’Brien cites Fiverr as one of the leading digital marketplaces for freelancers to sell their products and build their portfolios.

Although money is tight for a lot of people right now, there’s still a lot of opportunity to earn extra income by freelancing. If you live in one of the states where freelancers can thrive, you’ve hit the jackpot. But if you don’t, no matter the state you live in, you still can earn extra income or start your own business and enjoy the luxury of flexibility and being your own boss.