Cost of living comparison

Written by Vincent Roy · Last reviewed May 22, 2026 · Sourced from IRS Rev. Proc. 2025-32. Estimates only — not personalized tax advice. See disclaimer.

The geo-arb math for remote freelancers.

Three numbers move when you change states:

1. Housing — biggest single delta. Moving from SF Bay Area to Austin can cut housing 40–60% for equivalent space.
2. State income tax — the freelancer-specific lever most calcs ignore. California's 9–12% top rates vs Texas's 0% means a $150k freelancer keeps $13k+ more per year just by changing states.
3. Other expenses — food, utilities, transport. Smaller deltas than housing but still meaningful in low-vs-high-COL cities.

The calculator uses Q1099's own progressive state-tax math (the same engine that powers our quarterly tax calculator) — not a flat-rate approximation. CA, NY, NJ, OR, MN, HI use real bracket schedules; flat-rate states use statutory rate.

What this calc does NOT include (so you can layer them yourself if relevant):

• Sales tax differences (typically 0.5–1.5% of disposable income — small)
• Property tax (already in your housing input if you own)
• Federal tax (doesn't change between states)
• Self-employment tax (also doesn't change between states)

What the numbers don't capture.

• Moving costs — $5k–$20k for a long-distance household move. Recoup time matters.
• Relationships + lifestyle — proximity to family, weather, healthcare access, community. Real value not in the spreadsheet.
• Domicile rules — if you keep ties to a high-tax state (driver's license, voter registration, primary home, family there), you can be challenged as a resident. CA and NY audit aggressively.
• Health insurance — state marketplace premiums vary substantially. For 1099 workers without group coverage, this can swing $2–5k/year. Self-employed health insurance guide.
• Investment accounts — state tax on capital gains and interest can matter for high-investment freelancers.

Use this calculator for the quantifiable piece — housing + expenses + state tax. Add the qualitative factors separately. Bigger picture = a 12-month "trial" move via short-term lease is often the right de-risking move before committing.

More freelancer math.