๐ŸŒฒ Washington State ยท 2026 Tax Guide

WASHINGTON
1099 TAXES
2026

Washington State has no income tax โ€” but has a capital gains tax and the new Long-Term Care tax. Here is what Washington freelancers and 1099 workers actually owe.

0%
State income tax
0.58%
LTC tax (W2 only)
28%
Combined at $100K
๐ŸŒฒ
WA
Washington
State income tax0%
Standard deductionN/A
Capital gains tax7% above $262K
Quarterly paymentIRS only
Long-term care tax0.58% (W2)
California Tax Rates

WASHINGTON INCOME TAX
RATES 2026

Washington State has no state income tax on wages or self-employment income. However, Washington does have a 7% capital gains tax on gains over $262,050. Self-employed workers are not subject to the Long-Term Care tax (it applies to W2 employees).

$0
Washington State Income Tax
No state income tax on self-employment income
๐Ÿงฎ

CALCULATE YOUR CA TAX BILL

Use our 1099 calculator โ€” select California from the state dropdown for your exact federal + state total.

Calculate Now โ†’

WHAT WASHINGTON
1099 WORKERS MUST KNOW

โš ๏ธ Washington Capital Gains Tax (7%)

Washington has a 7% capital gains tax on long-term gains above $262,050. This applies to investment gains โ€” not to self-employment income from freelancing.

โš ๏ธ Long-Term Care Tax applies to W2 workers

Washington's 0.58% Long-Term Care tax applies to W2 employees. Self-employed workers are exempt by default but can opt in for coverage.

๐Ÿšซ No state income tax

Washington freelancers only file a federal return. No state income tax return required.

๐Ÿ’ฐ Seattle-area freelancers win

Tech freelancers and consultants in Seattle keep significantly more than in California or New York.

๐Ÿ“Š B&O Tax for businesses

Washington's Business & Occupation (B&O) tax applies to gross receipts โ€” 1.5% for service businesses. Check if your freelance income exceeds the $100K annual threshold.

๐Ÿฆ SEP-IRA still valuable

Reduces federal taxable income. At $80K net, $20K contribution saves $5,000+ in federal taxes.

๐Ÿ  Home office applies

Federal home office deduction reduces your federal tax bill. Use our calculator for your amount.

๐Ÿ“… IRS deadlines only

Quarterly deadlines: Apr 15, Jun 16, Sep 15, Jan 15. Pay at irs.gov/payments only.

Set-Aside Guide

HOW MUCH WASHINGTON
FREELANCERS SHOULD SAVE

$50K Net
25%
Federal + Washington combined
$100K Net
28%
Federal + Washington combined
$200K Net
32%
Federal + Washington combined

These are estimates. Use the 1099 tax calculator with California selected for your exact number based on your deductions.

COMPARE WITH
OTHER STATES

FAQ

CALIFORNIA 1099
TAX FAQ

What is the California state income tax rate for freelancers?

California has progressive rates from 1% to 13.3%. Most freelancers earning $50,000โ€“$100,000 pay a 9.3% marginal rate. Use our 1099 tax calculator with California selected for your exact amount.

Do California freelancers pay quarterly taxes to both IRS and FTB?

Yes. Pay federal quarterly estimated taxes at irs.gov/payments and California taxes at ftb.ca.gov. Same 4 deadlines: Apr 15, Jun 16, Sep 15, Jan 15.

What is the California standard deduction for 2026?

Only $5,202 for single filers versus the federal $14,600. This means California taxes $9,398 more of your income than the IRS. At 9.3%, that costs you an additional $874 in state tax.

Does California have a QBI deduction like the federal government?

No. California does not conform to the federal 20% Qualified Business Income (QBI) deduction. Your California taxable income will be higher than your federal taxable income as a result.

How much should California freelancers set aside for taxes?

At $80,000 net income: save 38โ€“42%. This covers federal SE tax (~14%), federal income tax (~18%), and California state tax (~8โ€“9%). Use the 1099 calculator for your exact number.

KNOW YOUR WASHINGTON TAX BILL
EVERY MONTH

ClickTaxEasy calculates your federal + Washington quarterly payments automatically based on your tracked income.

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