Self-employed in Washington: taxes and retirement for 2026

What consultants, freelancers, content creators, entrepreneurs, gig workers, tipped workers and tradespeople in Washington need to know this year: Washington income and estimated tax rules, and how to save for retirement without an employer plan.

Guides for Washington

Consultants in Washington Freelancers in Washington Content Creators in Washington Entrepreneurs in Washington Gig Workers in Washington Bartenders & Servers in Washington Construction & Trades in Washington

Washington rules that apply

State income tax (2026): Washington has no state income tax on wages or self-employment income. 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.
Washington business and occupation (B&O) tax: 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.
Minimum wage (2026): $17.13 an hour; no tip credit, so tipped workers get the full minimum before tips. 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.
Rideshare (TNC) driver minimum pay and rights (RCW 49.46.300 to 49.46.350): 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.
Seattle App-Based Worker Minimum Payment Ordinance (city law): 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.
Six-part independent contractor test for workers' comp (RCW 51.08.195): 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.
Noncompete earnings threshold for independent contractors: 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).
State retirement program: Washington Saves (and the Washington Small Business Retirement Marketplace) is launching. It is built around W-2 employers and does not cover 1099 contractors through the employer mandate.

Cities in Washington

Seattle

Questions

Do self-employed people in Washington pay state income tax?

Washington has no state income tax on wages or self-employment income. 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.

Are there other Washington taxes for self-employed self-employed people?

Washington business and occupation (B&O) tax: 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.

Track it in one place

Gigaverse estimates your quarterly taxes from what you actually earn, logs business trips, categorizes expenses from your bank and answers money questions with your own numbers.

Free · Takes 10 seconds · First 1,000 in line get launch perks

On Android? Get the app on Google Play

Get it onGoogle Play On iPhone? Use it on the web

Sources

Facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.