Washington Side Hustle Tax Calculator
Washington has no state income tax. Calculate your federal self-employment tax instantly.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Washington State side hustlers enjoy the benefit of no state income tax—making it one of the best states for freelancers and gig workers. Whether you're a tech contractor in Seattle, a rideshare driver in Spokane, or an online seller in Tacoma, you won't owe any Washington state tax on your earnings. However, be aware of the state's high sales tax and the new capital gains tax on investment income.
How Side Hustle Taxes Work in Washington
Washington is one of nine states with no state income tax:
**What Washington side hustlers pay:** - **Federal self-employment tax**: 15.3% - **Federal income tax**: 10-37% on total income - **Washington state income tax**: $0
**Important notes:** - Washington has NO income tax on side hustle earnings - The 7% capital gains tax only applies to investment gains, not self-employment income - Washington's high sales tax (6.5% state + local) doesn't affect your income - No local income taxes in Seattle or anywhere in WA
What Washington Side Hustlers Owe
Let's say you're a single filer in Seattle with a $75,000 W-2 job and $22,000 in side hustle income from freelance software development, with $4,000 in expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $18,000 - Federal SE tax (15.3% of 92.35%): ~$2,545 - Federal income tax on side income: ~$4,320 (24% bracket) - Washington state tax: $0 - **Total additional tax: ~$6,865**
Compare this to California where you'd pay an additional ~$1,674 in state taxes, or New York with ~$1,233 more. Washington residents save significantly.
Washington Tax Deadlines 2025
Since Washington has no state income tax, you only track federal deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use IRS Form 1040-ES for federal quarterly estimated payments. No state estimated payments required.
Common Deductions for Washington Freelancers
Washington side hustlers should maximize federal deductions: - Home office expenses - Business mileage (67 cents/mile for 2025) - Equipment and software - Professional services - Marketing and advertising - Retirement contributions (SEP-IRA, Solo 401k) - The 20% QBI deduction is especially valuable with no state tax to offset
Washington Side Hustle Tax FAQ
Does Washington State tax side hustle income?
No, Washington has no state income tax on earned income including self-employment. You only pay federal self-employment tax (15.3%) and federal income tax on your side hustle.
Does Seattle have a city income tax?
No, Seattle and all Washington cities have no local income taxes. Washington's tax burden comes from sales tax, not income tax.
What about Washington's capital gains tax?
Washington's 7% capital gains tax only applies to gains from selling investments (stocks, bonds). It does NOT apply to side hustle income or self-employment earnings.
Side Hustle Calculators by State
More states coming soon. Use the main calculator for all 50 states.
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This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
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