There are plenty of valid reasons to want to work remotely from a new state. Maybe your partner’s job requires you to relocate. Maybe you’ve recently started a family, become a caretaker, or taken on a side gig and need to save time or money. Or maybe you live in a place where you disagree with new laws or political leadership.
Whatever’s swaying you toward remote work, we get it! Which is why we’ve compiled the latest research on where exactly in the U.S. you’ll find a welcoming environment for telecommuting—taking into account everything from the number of available opportunities to salary potential, and even tax breaks.
“There’s not really much of an advocate for a non-resident taxpayer, there’s no institutional incentive for states to be very concerned about what kind of burdens they’re placing on them,” says Andrew Wilford, director of the Interstate Commerce Initiative and a senior policy analyst at The National Taxpayers Union Foundation (NTUF) focused on making tax law more transparent.
But, “remote work is here to stay,” Wilford says, “so it makes the states that make an effort to be competitive in this landscape a lot more attractive.”
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5 fantastic U.S. states for remote workers
The following U.S. states rank first and/or high on several recent lists for best places to work remotely, including:
- Job and salary platform ZipRecruiter’s ranking of states by average remote salary
- A 2024 report by financial assistant WalletHub on the top states by remote living and working environment that takes into account: share of work-from-home professionals, amount of remote openings, internet access, cybersecurity (or cybercrimes per capita), average price of electricity, average household square footage, and available housing conducive to remote work
- A 2024 study of the 200 largest cities in the U.S. conducted by lawncare company LawnStarter that ranks the top cities by number of remote job opportunities and workspaces (personal and coworking), financial incentives, connectivity, safety, affordability (income taxes, utility costs, and housing), amenities (access to food delivery), and interest (via Google search)
- An article by Newsweek that compiled 2023 data from the U.S. Bureau of Labor Statistics to rank states by most fully remote workers
- The NTUF’s Remote Obligations And Mobility (ROAM) Index, which bases its ranking on tax benefits for remote workers, factoring in income tax, filing and withholding thresholds, reciprocity agreements—agreements between states allowing residents to only pay taxes in one state—and the complexity of the tax code
Based on the above data, here are the six best states to consider as a remote worker.
Washington
Washington state has the second-highest average annual income for remote workers at $67,988, according to ZipRecruiter—surpassed only by New York ($69,230). It’s seventh on WalletHub’s overall ranking, coming in fifth for quality of living environment, and tied for first on the ROAM Index thanks to its lack of income tax.
Some of the major lifestyle perks the state provides, according to WalletHub, include robust internet access and relatively low prices for electricity.
Texas
While average annual salary isn’t especially high in Texas, the state offers plenty of other support systems for remote workers, such as coworking space and affordable housing relative to other regions. Five cities in the state—Frisco, Sugar Land, Flower Mound, Plano, and Allen—rank in the top 10 on LawnStarter’s list, while the BLS says it has the second-most remote workers (plus, no individual income tax!).
New Hampshire
New Hampshire telecommuters net around $63,988 a year on average, ZipRecruiter found. It’s a top 15 state according to WalletHub, and tied for first on the ROAM Index because there’s no income tax.
Illinois
Illinois has two cities in the top 10 ranking on LawnStarter—Naperville and Evanston. Additionally, the state ranks eighth for most remote workers according to the BLS, and twelfth on the ROAM Index because it has multiple reciprocity agreements with other states enabling employees to only pay taxes to one state, even if their employer resides in another.
The District of Columbia
While not a state per say, D.C. ranks well across factors such as income and other perks like internet access. Remote workers in the district make on average $67,884 annually, while the region places fifth on WalletHub’s analysis. DC is also prohibited from taxing nonresidents, which the NTUF notes is why it ranks high as a place for remote workers to set up shop..
5 honorable mentions
These states made fewer best-of lists, but still showed a lot of potential in crucial areas such as cost of living—so don’t write them off just yet if you’re exploring your options for remote work.
New York
New York state has the highest average annual salary threshold for remote workers, according to ZipRecruiter, at $69,230, which is also above the national average. It’s also fourth in the BLS standings for most remote workers. Another benefit is the state’s Paid Family Leave that even applies to out-of-state workers.
Georgia
Two Georgia cities—Roswell and Atlanta—are in the top 10 for WalletHub’s ranking of best living and working environments for telecommuting. It also places in the top 10 for most remote workers, as reported by the BLS.
Florida
Florida ranks third for the most remote workers in the nation, and also has no state income tax, putting it first on the ROAM Index. (Three cities in the state also made Forbes’ list of the 10 best places in the U.S. for remote workers due to their download speeds, amount of coworking spaces, and Wi-Fi access.)
Nevada
In Nevada, ZipRecruiter reports, telecommuters make on average $66,952 a year, which is higher than New Hampshire’s average. An extra perk is the lack of income tax.
Indiana
Indiana sits in the tenth spot on the ROAM Index as a result of its tax filing and withholding thresholds and numerous reciprocity agreements with nearby states. One city in the state, Carmel, is a top-three place to reside as a remote worker, according to LawnStarter, because of its remote opportunities, available workspace, and affordable housing.
FAQs about working remotely in another state
Is there a limit to how long you can work remotely in another state?
There’s no federal law indicating a limit on how long you can work remotely in another state before you have to head home. However, many states will qualify you as a resident after you hit a certain time period, which will affect how you file local and state taxes.
How do taxes work if you work remotely or out of state?
Tax law differs by region, so the best place to get the right information is your current state’s official government website, or via a certified accountant or tax expert.
Some states have no income tax, so if you live there permanently, you’ll likely pay nothing on what you earn while residing there. Other states have reciprocity agreements, which allow you to only pay taxes to one state—the one you’re in, not the one where your company or employer is based.
Number-of-days and earnings thresholds can also come into play, which, respectively, are when you have to pay taxes after you’ve logged a certain amount of days in the state and/or hit a certain income amount.
There’s also something called a “convenience of the employer” rule, where employees must pay tax to the state where their organization is based if they live out of state. “In those cases, the tax benefit of leaving is obviously mitigated because you’re still expected by that state to pay tax,” Wilford says.
How do you broach working from another state with your boss or HR?
To negotiate keeping your job while living in another state, first do your research: Has the company supported this kind of move before? Do you have a strong argument for why this is worth their time and investment? Are you prepared for the complications associated with remote work?
Next, find the right time to bring it up. When job searching, you’re best off broaching the subject in the final stages or after an offer is handed out. In your current role, set aside some one-on-one time with your manager when you know you can have a calm and productive conversation. Then, use these scripts for making your case for remote work.
For more great advice, check out our other Muse articles on working remotely with confidence.