TaskRabbit Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Washington

From assembling IKEA furniture in Seattle to running errands across the Puget Sound, TaskRabbit offers flexible income opportunities throughout Washington state. However, that income is subject to taxes, and understanding those obligations is crucial for avoiding penalties.

As a TaskRabbit, the IRS considers you self-employed. This means income earned through the platform must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, self-employment also triggers a 15.3% self-employment tax, covering both Social Security and Medicare contributions, which are not automatically withheld from your earnings like they would be from a traditional employer.

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 operating as sole proprietors through platforms like TaskRabbit, your gross income likely won't be high enough to trigger a B&O tax liability. However, it’s important to 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. Currently, the small business B&O tax rate is 0.471% of gross income. If your annual gross income exceeds certain thresholds (which vary by business activity, but are generally around $28,000), you may be required to register with the Washington State Department of Revenue and file B&O tax returns. Even if you don't anticipate owing B&O tax, it's prudent to understand the rules and monitor your income. Keep accurate records of all TaskRabbit earnings and expenses. The Department of Revenue provides extensive resources and guidance for small businesses, including those engaged in gig work. Failure to comply with B&O tax requirements, even if no tax is due, can result in penalties. Consulting with a tax professional familiar with Washington state tax laws is always recommended.

You can find more information on the Washington State Department of Revenue website: https://dor.wa.gov/

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 metropolitan areas, carefully consider if the standard mileage rate or the actual expenses method will yield a larger deduction.
• Tolls & Parking: Washington has various toll roads and bridges, including those around Seattle and Tacoma. Keep detailed records of all toll expenses and parking fees incurred while performing TaskRabbit tasks.
• Phone & Data Plan: The percentage of your phone and data plan attributable to business use is deductible. If you use your phone solely for TaskRabbit communication and navigation, you may be able to deduct the entire cost.
• Vehicle-Related Costs: Deductible expenses include items like car cleaning supplies, phone mounts for navigation, and insulated bags for food delivery tasks (if applicable).

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 and consistently apply it.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, TaskRabbit 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 tax payments made quarterly to the IRS. Failing to pay estimated taxes can result in penalties.