Amazon Flex Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Washington

Navigating the evergreen state as an Amazon Flex driver offers flexibility, but also introduces unique tax considerations. Delivering packages from Seattle to Spokane means keeping meticulous records for tax time is crucial.

As an independent contractor for Amazon Flex, the IRS considers earnings from deliveries as self-employment income. This necessitates reporting your income and expenses on Schedule C (Profit or Loss From Business) with your Form 1040. Crucially, this also means being responsible for self-employment taxes, covering both Social Security and Medicare, which Amazon does not withhold.

How Washington Handles Gig Worker Taxes

Washington is famous for not having a personal income tax, but it has a Business & Occupation (B&O) tax. For most gig workers, your gross income won't be high enough to owe B&O tax, but you should be aware of the threshold. The B&O tax is a gross receipts tax, meaning it’s applied to your total revenue before any deductions. Generally, if your annual gross income from Amazon Flex is under $24,000, you likely won’t be required to register for and pay B&O tax. However, this threshold can change, and it’s essential to verify current requirements. Even if you don't expect to owe, understanding the B&O tax is vital for compliance. The Washington Department of Revenue provides detailed information and registration options on their website: Washington State Department of Revenue. Keep in mind that even without a state income tax, accurate record-keeping is paramount to avoid potential issues with the B&O tax or future changes in state tax law. Consulting with a tax professional familiar with Washington state’s unique tax structure is always recommended.

Top Tax Deductions for Washington Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents per mile. Given Washington’s often-higher gas prices, especially in the Puget Sound region, carefully consider if the standard mileage rate or actual expense method will yield a greater deduction.
• Tolls & Parking: While Washington doesn’t have extensive toll roads, any tolls incurred during deliveries (e.g., on the Tacoma Narrows Bridge) are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes is deductible. Keep a log of business usage to support this claim.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, dash cams, and insulated hot bags used specifically for deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas or repairs in the same year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated quarterly tax payments to the IRS. This tax is applied to your net earnings – your gross income minus your business expenses – exceeding $400.