8 Best First Jobs If You Want To Pay Lower Taxes
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Your first job isn’t just about gaining experience — it can also impact how much you take home from your paycheck. Some entry-level jobs come with lower tax burdens due to falling into lower income brackets, qualifying for special deductions or leading to careers with tax advantages.
From freelance gigs to government positions, these jobs can help you minimize what you owe to the IRS while still earning a solid paycheck.
Three Key Types of Jobs
If you want a tax-friendly job, look for roles in three key areas, according to Andrew Lokenauth, finance expert and founder of TheFinanceNewsletter.com:
- Self-employed jobs
- Jobs with special tax treatment
- Jobs with Tax-advantaged benefits
Self-Employed Jobs
Self-employment comes with freedom and flexibility and the chance to reduce your taxable income through deductions.
Freelance or Contract Jobs
Freelancers and independent contractors have more control over their taxes. If you work for yourself — whether in consulting, IT, design or other fields — you can deduct business expenses that salaried employees can’t, according to Jeff Kaiden, CEO of Capacity.
“That includes home office costs, software, travel and even some meals. I’ve hired independent contractors who have a lower tax burden than my full-time employees, even though they make similar money.”
Content creators who make money through sponsorships, ad revenue or affiliate marketing can earn anywhere from $50,000 to $500,000 or more per year, depending on their niche, audience size and platform, according to Daniel Sanchez, CEO of Influencity.
Freelancing comes with trade-offs, however, such as tracking expenses, paying quarterly taxes and unpredictable income, but for those who manage it well, the tax benefits can be significant.
Digital Marketing Consultant
Experienced digital marketers who work as consultants often earn $80,000 to $250,000 per year, Sanchez said. Unlike salaried employees, consultants can deduct marketing tools, education, office space and travel expenses. Many structure their incomes to take advantage of lower business tax rates instead of paying high personal income taxes.
“This job is ideal for marketers who want flexibility and are good at networking. However, success requires staying ahead of trends and proving ROI (return on investment) to clients,” Sanchez said.
Freelance IT Consultant
If you have tech skills, consulting offers tax benefits, Lokenauth said. Freelance IT consultants can earn between $90,000 to $150,000 if they build up a solid clientele.
“You can deduct your home office, equipment, software subscriptions and professional development costs. Plus, structuring your business as an S-corp can save on self-employment taxes.”
Jobs With Special Tax Treatment
Some jobs offer unique tax benefits that can lead to significant savings.
Agricultural and Farming Careers
Christopher Migliaccio, lawyer and founder of Warren and Migliaccio L.L.C, explained that farming and agricultural jobs often come with special tax breaks. Farmers and agricultural workers can credit taxes, depreciate equipment and deduct land improvements.
“This is not the career for everyone, but anyone who can inherit farmland or transition into agriculture can benefit from distinct tax breaks,” he said.
Offshore Worker
Working on an oil rig or merchant ship can qualify you for the foreign earned income exclusion, Lokenauth explained. This means you might exclude up to $112,000 or more from U.S. federal income tax.
“The work is tough and you’re away from home, but the tax savings can be substantial,” he said.
Jobs With Tax-Advantaged Benefits
Many jobs offer tax benefits such as retirement accounts or other perks that offset pay.
Government Jobs
While government jobs don’t necessarily come with lower tax rates, they do offer strong benefits that help offset what you pay.
“Federal employees have access to tax-deferred retirement accounts, which means they can reduce taxable income while saving for the future. They also tend to have better health benefits, which can save a lot of money over time,” Kaiden said.
The downside? Salaries in government roles are often lower than in the private sector and career advancement can take longer.
Real Estate Agent
If you’re good with people and like setting your own hours, becoming a real estate agent may be a great first job, Lokenauth said. Real estate agents can write off car expenses, home office costs, marketing expenses and even phone bills.
“You’re technically self-employed, so you’ll need to handle your own taxes and benefits. But with proper planning, you can often keep your effective tax rate much lower than traditional employees.”
Real estate agents earn an average of around $85,000, though it can be significantly more depending on location.
Commercial Truck Driver
Truck drivers receive special per diem tax deductions that most professions don’t, Lokenauth said.
“You can write off meals and incidental expenses without receipts using standard rates. Plus, there are deductions for things like sleeping supplies and satellite radio subscriptions.”
The downside is that you’re away from home a lot. “But for someone who loves the open road and wants to maximize their take-home pay, this career path offers some sweet tax perks.”
Be Sure To Think Big Picture
Kaiden warned that paying lower taxes should not be the only consideration when choosing a job.
“A job that saves you money on taxes isn’t necessarily a better job. What matters is how much you actually take home, what benefits come with it and whether it sets you up for financial stability long term.”
Taxes are part of the equation, but they aren’t the whole story.
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