{"place":"Washington","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/washington","state":{"code":"WA","name":"Washington","slug":"washington","incomeTax":{"type":"none","flatRate2026":null,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"Washington has no individual income tax in 2026. Senate Bill 6346 (2026 session) adds a 9.9% tax for individuals and married couples filing jointly with adjusted gross income over $1 million, starting January 1, 2028, with first returns due in April 2029. A separate capital gains tax already applies: 7% on long-term gains above the standard deduction ($278,000 for 2025), plus 2.9% more (9.9% total) on gains over $1 million from tax year 2025.","source":"https://dor.wa.gov/taxes-rates/income-tax"},"estimatedTax":null,"minimumWage2026":{"standard":17.13,"tippedCash":17.13,"tipCreditAllowed":false,"notes":"No tip credit: tips and service charges cannot count toward minimum wage. The state rate rises to $17.73 on January 1, 2027. Several cities have higher local minimums, including Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett and Burien, as does unincorporated King County.","source":"https://www.lni.wa.gov/workers-rights/wages/minimum-wage"},"soleProprietorTaxes":[{"name":"Washington business and occupation (B&O) tax","summary":"A gross receipts tax on almost every business, including sole proprietors. The service rate in 2026 is 1.5% if the prior year's service income was under $1 million (1.75% from $1 million to $4,999,999.99, and 2.1% at $5 million or more). A small business credit of up to $160 a month for mainly service businesses ($55 a month for others) reduces or wipes out the tax. The Department of Revenue can excuse businesses under $125,000 a year in B&O gross income that owe no other DOR taxes from filing returns; SB 6346 raises this filing threshold to $250,000 for businesses that do not collect retail sales tax or public utility tax.","source":"https://dor.wa.gov/forms-publications/publications-subject/special-notices/service-and-other-activities-rate-changes"}],"contractorLaws":[{"name":"Rideshare (TNC) driver minimum pay and rights (RCW 49.46.300 to 49.46.350)","summary":"Rideshare drivers get state minimum pay, trip receipts and other rights enforced by L&I. 2026 minimums: trips starting in Seattle pay $0.70 per minute plus $1.63 per mile (at least $6.12 per trip); trips starting and ending outside Seattle pay $0.40 per minute plus $1.38 per mile (at least $3.55). Companies must pay at least every two weeks, including tips.","source":"https://lni.wa.gov/workers-rights/industry-specific-requirements/transportation-network-company-drivers-rights/getting-paid"},{"name":"Seattle App-Based Worker Minimum Payment Ordinance (city law)","summary":"Since January 13, 2024, covered app-based (gig) workers in Seattle must get at least $0.47 per minute plus $0.80 per mile, or $5.34 per offer, whichever is greater, in 2026. They also have rights to upfront offer details and pay records.","source":"https://www.seattle.gov/laborstandards/ordinances/app-based-worker-ordinances/app-based-worker-minimum-payment-ordinance"},{"name":"Six-part independent contractor test for workers' comp (RCW 51.08.195)","summary":"A worker is outside workers' comp coverage only if all six conditions are met: free from control; outside the usual course or places of business (or pays for their own place of business); independently established business; files a Schedule C (or similar) with the IRS; registered with DOR and holds a UBI number; and keeps separate business books.","source":"https://app.leg.wa.gov/RCW/default.aspx?cite=51.08.195"},{"name":"Noncompete earnings threshold for independent contractors","summary":"In 2026, a noncompete is enforceable against an independent contractor only if they earn more than $317,147.09 a year from the business enforcing it ($126,858.83 for employees) (RCW 49.62.020 and 49.62.030).","source":"https://lni.wa.gov/news-events/article/25-27/"}],"notes":"Washington taxes business gross receipts (B&O), not income. The small business credit amounts ($160/$55 a month) come from RCW 82.04.4451 (https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.4451). The $125,000 filing threshold is in RCW 82.32.045(5) (https://app.leg.wa.gov/RCW/default.aspx?cite=82.32.045), and the $250,000 increase is described at https://dor.wa.gov/taxes-rates/income-tax/frequently-asked-questions-about-income-tax. Local minimum wage rates are listed at https://www.lni.wa.gov/workers-rights/wages/minimum-wage/local-minimum-wage-rates. Capital gains rates come from https://dor.wa.gov/forms-publications/publications-subject/special-notices/new-tiered-rates-washingtons-capital-gains-tax and https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax."},"stateRetirementProgram":{"state":"Washington","code":"WA","programName":"Washington Saves (and the Washington Small Business Retirement Marketplace)","status":"launching","employerMandate":"Washington Saves: private employers in operation 2+ years whose workforce worked 10,400+ combined hours in the prior calendar year, unless they offer a qualifying plan","mandateMin":null,"keyDates":"Washington Saves enacted 2024 (RCW 19.05); board final report due December 1, 2026; auto-enrolment begins July 1, 2027, possibly phased by employer size.","covers1099":false,"selfEnroll":"unverified","sourceUrl":"https://lni.wa.gov/workers-rights/workplace-policies/washington-saves-retirement-program","note":"Two different things, often conflated. The voluntary Small Business Retirement Marketplace is already operating and is what Georgetown CRI counts among the 17 open state programs; the Washington Saves mandate is not yet live. Note the hours-based rather than headcount-based threshold — still a measure of employee hours, not contractor invoices.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/washington/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/washington/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/washington/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/washington/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/washington/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/washington/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/washington/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}