Washington tax guide
Washington doesn't tax most people's income, but its business tax is charged on gross receipts, before expenses. Here's what that means if you work for yourself.
Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides
Based on Washington Department of Revenue guidance on income tax, B&O tax, and business licenses.
Washington doesn't currently have an individual income tax, so there are no state estimated income tax payments for 2026. Your quarterly payments go to the IRS.
A new 9.9% income tax takes effect on January 1, 2028, but it applies only to individuals and married couples filing jointly with annual adjusted gross income over $1 million.
Most businesses in Washington are subject to the business and occupation tax. It's based on gross income, so you can't subtract costs like labor or materials first. That's very different from an income tax on profit.
| Classification | Rate |
|---|---|
| Service and other activities, under $1,000,000 in the prior year | 1.5% |
| Service and other activities, $1,000,000 to $4,999,999 in the prior year | 1.75% |
| Retailing | 0.471% |
| Wholesaling | 0.484% |
Smaller businesses may qualify for the small business credit, which can reduce or eliminate what's due. The Department of Revenue publishes the credit tables.
The Department of Revenue says you need to apply if, among other reasons, your gross income is $12,000 a year or more, or you sell a product or service that requires collecting sales tax.
Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.
Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.
Calculator
Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.
Calculator
Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.
Template
Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.
Template
Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.
Self-employment tax guide
The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.
Estimated tax guide
2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.
Schedule C education
Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.
Washington doesn't currently have an individual income tax. You still owe federal income tax and self-employment tax, and you may owe B&O tax.
The service and other activities rate is 1.5% for businesses with under $1,000,000 in the prior year.
No. The tax is based on gross income, so you can't subtract costs like labor or materials.