The Best and Worst States for Remote Work
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I became a remote worker for the first time in March 2020. Years later, I’m still working remotely and never (crossing my fingers) returning to the office. I’m not alone in that wish — 65% of workers prefer working remotely 100% of the time.
Working remotely is a wonderful lifestyle. Remote work means less commuting costs. Fewer professional wardrobe needs. And it allows me more time to sleep in, eat a decent lunch (on real plates!), and supervise my kids after school.
But some states are more friendly for remote work than others. You need to consider internet speed, safety, cost of living, housing, healthcare, environmental factors, income tax laws, and amenities like entertainment and dining options.
After talking to friends and fellow remote workers across the U.S., I’ve compiled a list of the best and worst states to live in for remote work. If you’re lucky enough to have a remote job, look at these states to move to — or avoid.
In this article
Overview of the best states for remote work
State | Best for |
Mississippi | |
Maryland | |
Tennessee | |
New Hampshire | |
Massachusetts |
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Best states for remote work
Mississippi
Mississippi is one of the best states to live in for remote work because it’s so affordable. Out of all the states in the U.S., Mississippi has the lowest cost of living, with an 83.3 cost of living index. Housing, in particular, is extremely affordable. On average, A two-bedroom apartment only costs $777 to rent, and single-family homes sell for just over $140K.
A low cost of living makes Mississippi a good option for remote work, especially for those whose employers pay well because they’re based in other states. You’ll be living like a king! But that’s where the good news ends for Mississippi, unfortunately.
While Mississippi is an extremely affordable place to live, it also ranks above Main, Montana, Iowa, and South Dakota in the bottom five states for average internet speed. The state ranks 22 for natural environment (water and air quality) and dead last for healthcare.
And while you can live cheaply in Mississippi, if you ever lose your remote job and have to find a new job, Mississippi has the lowest average income and the highest poverty rate in the U.S.
- Average internet speed: 84.5 Mpbs
- Income tax rate: 4-5%
- Natural environment rank: 22
- Healthcare rank: 50
Maryland
In addition to the great food, nearby cities, historical landmarks, and beaches, Maryland offers remote workers super fast internet — the best in the country. With 196.2 Mpbs average internet speed, workers in Maryland can compete in fast-paced industries like tech. And after work, Maryland’s internet can support multi-person gaming and video streaming.
In other aspects of living, remote workers also fair well in Maryland. The state provides easy access to quality healthcare. It also boasts clean, safe water and air and low pollution.
Unfortunately, all these good things come with some bad: a high cost of living. While some states outrank Maryland in terms of living costs, Maryland is definitely more expensive than average.
On the bright side, compared to other states’ crime rates and natural disasters, Maryland is one of the safest states to live in. And since personal safety contributes to our overall quality of life, especially outside work, that’s a big deal.
- Cost of living index: 124
- Average internet speed: 196.2 Mpbs
- Income tax rate: 2-5.75%
- Natural environment rank: 11
- Healthcare rank: 6
Tennessee
I lived in Tennessee for two years, and I can say from experience that it’s a beautiful place to live. The cost of living is low, internet speeds are decent, and there is zero income tax.
Additionally, the state offers tons of music and entertainment options. Fairs, festivals, art, and great barbecue are plentiful. And if you’re into caving, hiking, or biking, you’ll love it there.
On the other hand, Tennessee is near the bottom in terms of access to good healthcare, ranking 40 out of 50 states. And it doesn’t do much better for pollution, water, or air quality — it ranks 39 for natural environment.
But if you’re desperate for a chance to, I don’t know, own a home someday, Tennessee is a solid option for remote workers. And you can always fly to corporate retreats or vacations via the nearby Nashville or Atlanta airports.
- Cost of living index: 89
- Average internet speed: 132.7 Mpbs
- Income tax rate: none
- Natural environment rank: 39
- Healthcare rank: 40
New Hampshire
If you’re looking for excellent air and water quality, look no further than New Hampshire. It ranks number two in all 50 states for natural environment, topped only by Hawaii (which has a much higher cost of living).
New Hampshire also provides great access to healthcare and good internet speed. The income tax rate is nonexistent for earned income — you only pay 5% on interest and dividends.
Another great benefit of living in New Hampshire is the safety ratings. It’s the eighth-safest state to live in. It also has a low unemployment rate of 2.6%, so you could easily find a new one if you ever lose your remote job.
The only real drawback I can see for New Hampshire is its above-average cost of living (109.9 cost of living index). Other potential cons include high traffic (lacking public transit) and a high property tax rate of 2.18%.
- Cost of living index: 109.9
- Average internet speed: 144.3 Mpbs
- Income tax rate: 5% on interest and dividends only
- Natural environment rank: 2
- Healthcare rank: 13
Massachusetts
If you’re looking for a great place to live, it’s hard to beat Massachusetts. The state offers excellent healthcare, ranking two out of all 50 states, and excellent water and air quality, ranking four in all 50 states for natural environment.
The only state with better-quality healthcare and natural environment is Hawaii — and as we’ve discussed, Hawaii’s high cost of living outweighs those benefits for many remote workers.
Massachusetts also has a pretty high cost of living — beat out only by California, New York, and Hawaii — which is a huge bummer. But its education system, ample job opportunities, and outdoor recreation make this a great choice for remote workers.
Oh yeah. Work. Have I mentioned fast internet? Massachusetts provides some of the fastest internet in the country, ranking number four for the fastest average internet speed behind only Maryland, Virginia, and New York.
- Cost of living index: 135
- Average internet speed: 188.2 Mpbs
- Income tax rate: 5%
- Natural environment rank: 4
- Healthcare rank: 2
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Overview of the worst states for remote work
State | Worst for |
Hawaii | |
Alaska | |
California | |
Nevada | |
Arkansas |
Worst states for remote work
Hawaii
Okay, I’ve never been to Hawaii, but hear me out. Sure it has beautiful beaches, and the weather is nice. Yet most remote workers will assure you they don’t do their best work on the beach. That nomadic lifestyle is a myth.
What all remote workers need is a place to work — their home. And if you live in Hawaii, chances are you’re paying through the roof for that home. From groceries to housing, it costs way more to live in Hawaii than in your average state.
Groceries cost 50% more because they must be shipped to the island. Owning a home will cost an average of $730,511 (yikes!), and renting a two-bedroom apartment will cost $1,651 on average.
That said, Hawaii does have okay internet speed. (At least, it’s better than Nebraska, where I live!) And if you prioritize your health and natural environment, Hawaii ranks number one in both categories.
- Average internet speed: 102.6 Mbps
- Income tax rate: 1.4-11%
- Natural environment rank: 1
- Healthcare rank: 1
Alaska
No doubt, Alaska is also a beautiful place to live. However, I was shocked that they rank 46 for natural environment. 46! And that’s only when pollution is factored in. When just taking into account water and air quality, Alaska is at the very bottom.
Alaska also has the slowest average internet speed of all 50 states, meaning anyone connecting to a VPN or watching Netflix will have a tough time living day to day.
And if that’s not enough, Alaska’s high cost of living would be enough to scare me away from moving there. Oregon, Massachusetts, California, New York, and Hawaii are the only states that cost more.
The one good thing the state has going for it is zero income tax. So if you’re making good money as a remote worker and want a place to hunker down on the outskirts of civilization, maybe Alaska could work for you.
- Average internet speed: 58.6 Mpbs
- Income tax rate: none
- Natural environment rank: 46
- Healthcare rank: 22
California
California was once the place to look for cool, high-paying tech jobs. But now that most of those jobs are available as work-from-home jobs, I don’t really see the redeeming quality in continuing to live there. The state struggles with water and air quality, drought and wildfires, congested traffic, and few public transportation options.
Also, if you live in California, you’re paying big bucks. It is the third most expensive state to live in the U.S., behind only New York and Hawaii. Gas prices are high. And single-family home costs $683,996 on average, which is twice the national average.
You’d think that being so near Silicon Valley would mean ultra-fast internet. But you’d be wrong. California’s internet is actually slower on average than West Virginia, Louisiana, and even Wyoming.
One of the biggest pros is that California offers many amenities like shopping, dining, entertainment, and, most importantly, good healthcare.
- Cost of living index: 142.2
- Average internet speed: 92.6 Mbps
- Income tax rate: 1-13.30%
- Natural environment rank: 35
- Healthcare rank: 5
Nevada
Aside from its nonexistent income tax (yah!), I don’t have many good things to say about Nevada.
First of all, it’s not a healthy option. Nevada ranks last for natural environment, which means its air, water, and pollution are all poor. It’s also got not-so-great access to healthcare, ranking 39 out of all 50 states.
Nevada also has the worst unemployment in the country, with a 4.9% unemployment rate. If you already have a remote job, that might not be so bad, but what if you lose that job? Finding another comparable job could prove challenging.
One good thing about Nevada is that it doesn’t charge people any income tax, and their real estate tax rate is only 0.60%. Air and water are bad, but at least you don’t have to pay a lot in taxes!
- Average internet speed: 112.1 Mpbs
- Income tax rate: none
- Natural environment rank: 50
- Healthcare rank: 39
Arkansas
I’ve visited Arkansas on many occasions, and I can tell you it offers many natural wonders. Caving and biking in Arkansas are great. The population is growing. And it’s a really affordable place to live, ranking 11 out of all 50 states for the lowest cost of living.
However, the state of Arkansas is lacking in infrastructure, particularly its access to high-quality healthcare. Its natural environment ranks in the bottom half of all 50 states, particularly for its high pollution, which ranks 36.
At 3.7%, Arkansas doesn’t have the worst unemployment rate (although it’s also not great). And its internet speed is only okay at 104.1 Mbps.
Regarding personal safety, Arkansas ranks 47, fairing better than only Texas, Mississippi, and Louisiana. And since its healthcare ranking is 49, if something bad happens to you, good luck getting the help you need.
- Average internet speed: 104.1 Mbps
- Income tax rate: 2-5.5%
- Natural environment rank: 30
- Healthcare rank: 49
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Summary of the best and worst states to live for remote workers
State | Best features | Worst features |
Mississippi | Low cost of living | Everything else |
Maryland | Fast internet, good access to health care, high-quality water and air | High cost of living |
Tennessee | No income tax, low cost of living | Poor healthcare, poor natural environment |
New Hampshire | Good natural environment, fast internet, no earned income tax, good healthcare | Higher-than-average cost of living |
Massachusetts | Good healthcare, fast internet, good natural environment | High cost of living |
Hawaii | Excellent natural environment, excellent healthcare | Ultra-high cost of living |
Alaska | No income tax | Slow internet, high cost of living, poor water and air quality |
California | Great healthcare | High income taxes, high cost of living |
Nevada | No income tax | Poor natural environment, poor healthcare |
Arkansas | Low cost of living | Poor healthcare |
FAQs
What is double taxation?
Income tax laws vary by state. If you live in one state and your employer is based in a different state, that could mean you’ll be taxed twice — by the state you live in and by the state your employer is in. Some states like Connecticut, Delaware, Nebraska, New York, and Pennsylvania have a “convenience rule,” which means you may be subject to double taxation if you live there while working remotely for a company that is based in another state.
What is the cost of living index?
The “cost of living” is the average amount needed to pay for everyday expenses like housing, healthcare, food, and transportation. The “cost of living index” of a particular place is measured against the average cost of living across the U.S., which is set to 100. An individual state with the cost of living twice the national average would have a cost of living index of 200.
What is a good internet speed?
Your ideal internet speed depends on how many devices your household uses and what you’re doing — browsing the web or streaming high-definition video. Most people consider 100 Mbps the minimum speed “good.”
Why you should (or shouldn’t) move as a remote worker
If you’re a remote worker struggling to pay your rent or mortgage, or you dream of breathing better air or visiting a good hospital, you should move to a different state. There are plenty of good options, some more expensive than others, some healthier or safer.
Whatever you decide, be sure your reasons for moving are isolated to your personal living conditions and not your state laws. Some of those — like PTO laws — might not change when you move if you don’t change companies.
"Many companies, in addition to providing remote work, are also offering generous or unlimited PTO,” says Anna Burgess Yang, a self-employed remote work evangelist. “However, if an employee leaves the company in the future, this benefit is limited depending on the state. Some states require employers to pay out unused PTO; others don't. Companies offering unlimited PTO can also circumvent a payout since no PTO has been accrued. Employees should know their state's laws and consider what the employer offers."
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The bottom line
Moving to a state with more favorable living conditions can increase your quality of life. Be sure to factor in a state’s cost of living and internet speed, as well as its natural environment and healthcare. Also, keep in mind that your well-being (financial and physical) also depends heavily on the state your company is based in. Research their state’s laws and your own to weigh your best options.
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Writer
A veteran wordsmith and research nerd, Brittany Wren spent a decade working in higher education where she helped people overcome challenges to chart a path forward. These days, she writes about personal finance, careers, parenting and education. Her content has been published by a wide variety of brands including T-Mobile, Intuit, LifeLock, Reliant Fund Administration and CURO Financial Technologies Corp.
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