Freelancer Tax Guide — Memphis 2026

Freelancing in Memphis means a combined state and local income tax of 0%, which puts it level with the 13 other tax-free cities among the 50 we track — nothing below that. There is no state income tax here and no local income tax either, so the only income tax a freelancer in Memphis pays is federal. Living costs are low relative to the rest of the list, and the freelancers we see here average $60,000 a year — $0 of that goes to state and local income tax.