Self-employed workers, state by state

Of the 40 states and the District of Columbia where we are licensed, Montana has the largest share of self-employed workers: about 15 in every 100 working people. Florida, at about 12.8, and Idaho, at about 12.5, come next. The District of Columbia has the smallest share, about 7.4, and the national figure is about 10.

I put it together because a business owner’s income often looks different on a mortgage application than a salary does.

The table: 40 states and the District of Columbia

“Per 100” means out of every 100 employed workers aged 16 and over. The margin of error is the Census Bureau’s, at 90 in 100 confidence: the true share is likely within that distance either way. States run from the largest share to the smallest, with the national figure last.

Source: U.S. Census Bureau, American Community Survey 5-year estimates, 2020-2024, table B24080, read from data.census.gov on November 4, 2026. Shares and margins worked out by Fidelity Residential.

How the figures were worked out

• Self-employed: people whose main job is in their own business, profession, trade or farm. Unpaid family workers are left out.
• Incorporated: the Census Bureau counts the owner of an incorporated business as a paid employee of their own company, on a separate line. They are added to the self-employed here.
• Per 100: self-employed workers divided by all employed workers, times 100, men and women added together.
• Margins of error: combined from the Census Bureau’s own margins with its published formulas, so they are approximations.

What it can and cannot tell you

It counts people who work for themselves, not what they earn:

• Main job. Each worker is classed by the job they worked the most hours at, so a salaried worker with a side business counts as an employee.
• Where people live. Workers are counted in the state where they live, not where the business is.
• Survey estimates. These are five-year averages from a sample. In the places with the fewest workers (Alaska, the District of Columbia, Delaware, Montana and Hawaii) the margin is about 0.3 to 0.4 in 100, so states a few tenths apart may not really differ.
• A state is a wide area. Our New Jersey county table runs from about 7 to about 12 in 100 within one state.

What the table shows

• Montana stands out. At about 15.2 in 100 it is clearly above every other state, and its 9.0 in 100 not incorporated is also the highest.
• The West is high. Six of the seven largest shares are in the West: Montana, Idaho, California, Colorado, Hawaii and Oregon. Florida is the other.
• The smallest shares are in the East. The ten smallest are all east of the Mississippi River, from Maryland, Virginia and Kentucky to Pennsylvania, Ohio and Indiana, with the District of Columbia last at about 7.4.
• Above and below the nation. Thirteen of the 41 are above the national figure of about 10.0 by more than their margins of error, and 23 are below it; New Mexico, Arizona, South Carolina, Alaska and Connecticut are within their margins of it.
• Florida has the most incorporated owners: about 6.4 in 100 workers, with Montana next at about 6.2. Tennessee has the smallest incorporated share, about 2.8.
• Three states hold about 3 in 10 of the nation’s self-employed: California (about 2.14 million), Texas (about 1.51 million) and Florida (about 1.34 million).

What it means if you are self-employed and buying a home

On a standard loan, income comes from your tax returns: the net income left after write-offs. Self-employed people often find that their tax returns show less than the business brings in. There are other ways to show income:

• A bank statement loan works out a monthly income from the deposits in your bank statements instead of the income on your tax returns.
• A 1099 loan is for independent contractors, freelancers, gig workers and commission earners paid on IRS Form 1099. The lender uses the 1099 forms themselves instead of tax returns.
• A profit and loss loan uses a profit and loss statement for the business, prepared by an independent tax professional, instead of tax returns.

Your credit, your housing payment history, the money for the down payment and savings, the appraisal and your debts compared with your income are all still checked.

Frequently asked questions

Why does the table show 40 states and the District of Columbia?

Fidelity Residential is licensed in 40 states and the District of Columbia, and the table covers those. The national figure covers the whole country.

Does a side business count as self-employment here?

No. The survey classes each worker by the job they worked the most hours at, so a salaried worker with a side business is counted as an employee.

What if my tax returns show less than my business brings in?

On a standard loan, income comes from your tax returns after write-offs. A bank statement loan, a 1099 loan or a profit and loss loan uses other records instead. Your credit, savings, the appraisal and your debts compared with your income are still checked.

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