Washington Contractor Tax Guide
Washington does not tax wage or business income.
Combined Social Security and Medicare tax (Self-Employment).
Progressive marginal rates, applied separately to taxable income.
How 1099 Taxes Work in Washington
As a freelancer, consultant, or gig worker in Washington, you are technically your own employer. This means you aren't subject to standard W-2 withholding from a "boss." Instead, you must manually track your earnings and determine federal and any applicable state obligations. Check the Washington Department of Revenue for state-specific rules.
Washington-Specific Considerations
Business Entity Tax
Washington has no income tax, but it taxes gross receipts directly through the Business & Occupation (B&O) tax — there's no deduction for expenses. Most contractors fall under the “Service and Other Activities” classification, tiered by your prior year's Washington-source revenue: 1.5% under $1M, 1.75% from $1M–$5M, 2.1% above $5M. A Small Business B&O Tax Credit can reduce or eliminate what smaller filers owe — check the Department of Revenue's current credit table for your exact rate.
Local Income Tax
There's no state or local individual income tax anywhere in Washington. Seattle's JumpStart payroll tax only applies to very large employers with multi-million-dollar payrolls and doesn't affect a typical solo contractor. Some cities, including Seattle, do levy their own local B&O tax on top of the state one if you're doing business there.
Filing & Estimated Payments
Individual returns use None — Washington has no individual income tax return. There's no individual estimated income tax, since Washington doesn't tax individual income. The B&O tax has its own separate filing frequency (monthly, quarterly, or annually) assigned by the Department of Revenue based on your revenue.
Worth Knowing
Self-employed Washingtonians aren't automatically covered by the state's Paid Family and Medical Leave program, but can opt in voluntarily. Doing so means committing to pay the premium yourself for 3 years before you can draw benefits, plus a minimum hours-worked requirement during the qualifying period — a real commitment most people don't realize exists until they need the leave.
Worked Example: $75,000 Washington Contractor
On $75k of net 1099 profit (single filer, no deductions), the calculator estimates $6,504 in federal income tax, $10,597 in self-employment tax, and $0 in state tax — leaving about $57,899 take-home.
Sources: Washington DOR — B&O Rate Changes (Service & Other Activities), Washington Paid Leave — Elective Coverage
Quarterly Estimated Payments
Federal estimated payments generally apply when you expect to owe at least $1,000, subject to withholding and safe-harbor rules. Typical federal due dates are below; weekends and holidays can shift them. January is in the following year. State requirements vary:
Deductions and Expenses in Washington
The single best way to lower your tax bill in Washington is to optimize your business deductions. Common expenses you can subtract from your gross income include:
Home Office
A proportional amount of rent or mortgage for your dedicated workspace.
Software & Tools
Subscriptions, laptops, and professional design or dev tools.
Travel & Auto
Mileage driven for client meetings or local hardware purchases.
Internet & Phone
The percentage of your utility bills used primarily for business.
Official Washington Tax Resources
Washington Department of Revenue
Visit the official state portal to download forms, pay online, or contact support.
Calculate Your Net Pay
Ready to see an estimate of how much you'll keep after Washington taxes? Try our free take-home estimator.
Open CalculatorDoes Washington tax income?
Great news! Washington does not tax wage or business income. This makes it a popular destination for high-earning contractors.