Web Developer Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Washington

The Emerald State’s thriving tech scene offers web developers ample opportunities, but navigating the tax landscape as a freelancer requires careful planning. As a self-employed web developer in Washington, understanding your federal and state tax obligations is crucial for financial success.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, income over $400 is subject to self-employment tax, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Washington Handles Gig Worker Taxes

Washington is unique in that it does not have a traditional personal income tax. However, this doesn’t mean web developers are exempt from state taxes. Washington levies a Business & Occupation (B&O) tax, a gross receipts tax applied to the total revenue of a business, regardless of profitability. For most web developers operating as independent contractors, the annual gross income threshold for B&O tax liability is relatively high – currently $28,810 as of 2024 (subject to change for 2025). Therefore, many gig workers won’t owe B&O tax. However, it’s vital to be aware of this tax and monitor your income. Even if you don’t exceed the threshold, maintaining accurate records of all income is essential. Additionally, if you sell tangible personal property, you may be required to collect and remit sales tax. Understanding your specific B&O tax classification is important; the Washington State Department of Revenue provides detailed guidance and resources. Failure to comply with B&O tax requirements can result in penalties and interest. It's always best to consult the Department of Revenue directly or seek professional tax advice to ensure you're meeting your obligations.

You can find more information on Washington State taxes at the Washington State Department of Revenue.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: This deduction allows web developers to write off expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is only used for work – a corner of the living room used for both work and relaxation doesn’t qualify. “Regular use” means the space is used consistently for business 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 computers, monitors, cameras, and essential software subscriptions (like Adobe Creative Cloud, web hosting, or development tools) are generally deductible as business expenses. For larger purchases (like a new computer), depreciation may be required over several years.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Keep detailed records of how you use these services to justify your deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for occasional trips to meet with clients, attend industry events, or run business-related errands. Keep a detailed mileage log.

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 FICA 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).