Relocation

The Best U.S. States for Remote Workers (2026 Data)

Remote work is now permanent for ~30% of U.S. knowledge workers. We rank the ten states that best balance cost of living, internet infrastructure, household income and tax climate for fully remote employees.

By City Zip Compare Editorial · May 10, 2026 · 11 min read

The proportion of U.S. workers fully remote has stabilized at roughly 30% of knowledge workers, depending on the survey, and shows no sign of returning to 2019 levels. For the first time at scale, where you live is decoupled from where you work — and a lot of households are choosing more carefully than they did when proximity to an office dictated geography.

This ranking scores each state on four dimensions: housing cost (ACS5 B25077 median home value, B25064 median rent), median household income (B19013), broadband internet access (B28002, share of households with a broadband subscription), and state tax climate (income tax + sales tax + property tax burden, from each state's revenue department).

1. Tennessee

Tennessee leads our composite. No state income tax. Median home value below $250,000. Median household income above $60,000. Broadband subscription rate above 85% statewide. Nashville and Knoxville are real cities with real talent pools, so even part-remote workers can plug back in.

Trade-off: state and local sales tax sits among the highest in the country (combined ~9.5%), which slightly offsets the income-tax savings.

2. Texas

Texas's appeal is well known: no state income tax, growing labor markets, and a wide range of cost-of-living tiers from sub-$200K Brownsville to $700K Austin. The Census data shows household income has risen faster than housing cost in most Texas metros over the last vintage.

Trade-off: property tax is among the highest in the country (~1.7% effective). For high-earning remote workers who own a home, the property-tax bill can erase the income-tax advantage.

3. Florida

Florida's no-income-tax status is the headline. The reality is more nuanced: coastal Florida is now expensive, and homeowners insurance has roughly doubled in many ZIPs since 2020. For remote workers in inland Florida (the Panhandle, the Lake City corridor, Lakeland), the tax advantage holds; for coastal Florida, it gets eaten by housing.

4. North Carolina

North Carolina is the highest-ranked state with a meaningful income tax. The flat 4.5% rate is among the lowest in the country, the Research Triangle (Raleigh-Durham) anchors a deep labor market, and the median home value is still well below the national figure. Charlotte adds a second knowledge-economy hub.

5. Georgia

Atlanta anchors a major knowledge-economy metro, broadband access is strong, and the cost of living outside Atlanta proper drops dramatically. State income tax is moving toward a flat 4.99%.

6. South Carolina

Charleston and Greenville offer real labor markets, the cost of living sits well below the national average outside those two metros, and broadband access has improved sharply over the last vintage.

7. Idaho

Boise has been the fastest-growing mid-sized U.S. metro for several years running, fueled almost entirely by inbound remote workers from California. Idaho's flat 5.8% income tax is reasonable; housing cost has risen sharply but is still below California.

8. Utah

Salt Lake City has built a serious tech corridor along I-15 ('Silicon Slopes'). The state has a flat 4.65% income tax. Median household income is the highest of any Mountain West state.

9. New Hampshire

No state income tax (and the legacy interest-and-dividend tax is now phased out). No state sales tax. The trade-off is some of the highest property taxes in the country and a small labor market — most New Hampshire remote workers commute occasionally to Boston.

10. Nevada

No state income tax. Las Vegas and Reno both anchor real metros, and Nevada has the most permissive 'physical presence' rules of any no-income-tax state — relevant for high-earners who want to legally establish residency.

What this list doesn't include

We don't include Wyoming, South Dakota or Alaska — all three have no income tax but have such small labor markets and (in Alaska's case) such high cost of living that they're not generalizable choices. They're great for narrow profiles (oil-and-gas workers, retirees, people who actively want low-density living) but poor general remote-work picks.

We also don't include California, Massachusetts or New York. They have deep talent pools but their cost of living and income tax stack make them poor pure-remote arbitrage choices.

The pay-cut risk

Many large employers now adjust salary by location. If you move from San Francisco to rural Tennessee, your housing cost may drop by 70% but your salary may drop by 15–20%. The arithmetic is still positive — you keep more of every dollar — but the simplistic 'arbitrage' framing oversells the case. Always model your specific employer's location-pay policy before pricing the move.

Frequently asked

What is the best state for remote workers?

By composite score (cost, tax, broadband, labor market), Tennessee and Texas consistently top our list. Florida is excellent in inland ZIPs but increasingly expensive on the coast.

Do remote workers really save money in no-income-tax states?

Usually yes, but watch the offsets: Texas property tax (~1.7%), Tennessee sales tax (~9.5%) and Florida insurance can each erase a meaningful share of the income-tax savings.

Is broadband still a barrier in rural America?

Less than it was. Census ACS5 (B28002) puts the U.S. broadband-subscription rate above 85% in most states. Rural counties of Appalachia, the Mississippi Delta and the Great Plains still lag, but the gap is closing.

Will my employer cut my pay if I move?

Possibly. About a third of large U.S. employers adjust salary based on cost-of-living index for the worker's home address. Always check your employer's specific policy before pricing a move.

More in Relocation

Source: U.S. Census Bureau, American Community Survey 5-year estimates. Data: census.gov/programs-surveys/acs.