Does Washington tax self-employment income?

Washington has no personal income tax, so 1099 income is taxed only federally: income tax plus 15.3% self-employment tax. However, the state B&O tax applies to gross business receipts.

What is the Washington B&O tax for gig workers?

The state B&O tax for service businesses is 1.55% of gross receipts. A small-business B&O tax credit reduces or eliminates the bill below roughly $125,000 of annual receipts, so many part-time gig workers owe nothing.

Does Seattle add its own business tax?

Yes. Seattle requires a business license and levies its own B&O tax once your Seattle receipts exceed the annual threshold. Tacoma and Bellevue have similar city B&O taxes.

How much should a Washington gig worker set aside?

Typically 21% to 26% of net profit for federal income tax and SE tax, plus a small buffer for B&O once your gross receipts clear the credit threshold.

Do Washington freelancers pay quarterly estimates?

Only federal Form 1040-ES estimates, due April 15, June 15, September 15 and January 15. The state B&O return is separate and usually quarterly.

Is mileage still worth tracking in Washington?

Yes. The $0.70 per business mile 2026 deduction reduces your federal income tax and SE-tax base, even though there is no state income tax to apply it against.

Washington Self-Employed Tax Calculator

Federal income tax + 15.3% self-employment tax on 2026 1099 income for Washington residents. No state income tax — but watch the B&O tax.

Washington has no personal income tax, so the calculator only needs federal income tax and the 15.3% self-employment tax to size your set-aside. The twist is the Business & Occupation tax: Washington taxes your gross business receipts, and Seattle, Tacoma and Bellevue add their own city B&O on top. The small-business B&O credit wipes out the bill for many part-time gig workers, but full-time drivers should check.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$10,941

Refund / owed

-$10,941

Effective rate

18.2%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$0

Quarterly estimated payment$2,614

Marginal rate12.0%

Washington city tax rates for self-employed workers (2026)

Washington has no personal income tax, but it taxes business revenue directly: the state B&O tax and several city B&O taxes apply to gig gross receipts, and Seattle adds a city B&O return on top.

Local and state tax rates for self-employed residents of major Washington cities in 2026
City	Local rate	State rate	What gig workers should know
Seattle	0.1%–0.215% city B&O (service threshold)	0% income tax; 1.55% service B&O	Business license required; city B&O due when Seattle receipts exceed the annual threshold.
Tacoma	0.10%–0.153% city B&O	0% income tax; state B&O applies	Annual business license fee; B&O under the small-business threshold is exempt.
Bellevue	0.1496% city B&O	0% income tax; state B&O applies	B&O applies above the quarterly gross-receipts threshold.
Spokane	No city B&O; annual license fee (~$120)	0% income tax; state B&O applies	Business registration required; no local percentage tax on service revenue.
Vancouver	Annual license fee; no city B&O	0% income tax; state B&O applies	State B&O on service revenue over the small-business credit threshold is the main cost.

Washington local and state filing deadlines

Washington state income taxNone
No personal income tax return and no state estimated payments.
WA B&O / combined excise returnApril 30 / Jul 31 / Oct 31 / Jan 31 (quarterly)
Monthly for higher revenue; most gig workers file quarterly with the Dept. of Revenue.
City B&O return (Seattle, Tacoma, Bellevue)Quarterly, month after quarter end
Filed separately from the state return once city receipts cross the threshold.
Business license renewalAnnually, date on your license
State UBI renewal plus city endorsements.
WA capital gains tax returnApril 15, 2027
Only if you sold long-term assets above the $270,000 exemption — not gig income.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

The state B&O service-and-other-activities rate is 1.55% of gross receipts, with a small-business B&O tax credit that zeroes out many part-time gig workers.
No income tax means no mileage benefit at the state level — the $0.70 per mile 2026 deduction only reduces your federal bill.

Frequently asked questions

Does Washington tax self-employment income?: Washington has no personal income tax, so 1099 income is taxed only federally: income tax plus 15.3% self-employment tax. However, the state B&O tax applies to gross business receipts.
What is the Washington B&O tax for gig workers?: The state B&O tax for service businesses is 1.55% of gross receipts. A small-business B&O tax credit reduces or eliminates the bill below roughly $125,000 of annual receipts, so many part-time gig workers owe nothing.
Does Seattle add its own business tax?: Yes. Seattle requires a business license and levies its own B&O tax once your Seattle receipts exceed the annual threshold. Tacoma and Bellevue have similar city B&O taxes.
How much should a Washington gig worker set aside?: Typically 21% to 26% of net profit for federal income tax and SE tax, plus a small buffer for B&O once your gross receipts clear the credit threshold.
Do Washington freelancers pay quarterly estimates?: Only federal Form 1040-ES estimates, due April 15, June 15, September 15 and January 15. The state B&O return is separate and usually quarterly.
Is mileage still worth tracking in Washington?: Yes. The $0.70 per business mile 2026 deduction reduces your federal income tax and SE-tax base, even though there is no state income tax to apply it against.