Twitch Streamer Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Twitch Streamer in Washington

Building a community and entertaining viewers on Twitch from the Evergreen State can be incredibly rewarding, but it also comes with tax responsibilities. As a self-employed streamer, understanding these obligations is crucial for staying compliant with both federal and Washington state regulations.

The IRS considers income earned through Twitch streaming as self-employment income. This means it must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, earning $400 or more as a self-employed individual triggers the requirement to pay self-employment tax, covering both Social Security and Medicare contributions.

How Washington Handles Gig Worker Taxes

Washington is unique among US states for not imposing a traditional personal income tax. However, this doesn’t mean Twitch streamers are exempt from all state taxes. Washington levies a Business & Occupation (B&O) tax, a gross receipts tax applied to the revenue of businesses operating within the state. For most Twitch streamers, particularly those just starting out, gross income will likely fall below the threshold requiring B&O tax payment. The current threshold varies depending on the business activity, but generally, it's relatively high. However, it’s vital to be aware of this tax and monitor your income to ensure compliance as your streaming career grows. Even if no tax is due, understanding the B&O tax structure is important. The Washington Department of Revenue provides detailed information and resources for businesses, including those operating in the gig economy. Failure to register when required can result in penalties. Keep accurate records of all income and expenses, as this information is essential for both federal and potential state tax obligations. Consulting with a tax professional familiar with Washington state’s B&O tax is highly recommended as your income increases.

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

Key Tax Deductions for Home-Based Twitch Streamers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for your Twitch streaming business. “Exclusive use” means that portion of your home is used solely for streaming – it can’t double as a guest room or family room. “Regular use” means you use the space consistently for streaming activities. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential hardware and software used for streaming is generally deductible. This includes your computer, webcam, microphone, lighting, streaming software subscriptions (like OBS Studio Pro), and creative software subscriptions (like Adobe Creative Cloud if used for creating stream assets).
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if you use your internet 75% for streaming and 25% for personal use, you can deduct 75% of the cost. Maintaining a log of business vs. personal use is helpful for substantiation.

Note on Mileage: As a predominantly home-based streamer, mileage deductions are less common. However, if you occasionally travel for streaming-related events, client meetings (e.g., sponsorships), or to purchase equipment, you can deduct those business miles using the standard mileage rate or actual expenses.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from employees’ paychecks. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).