YouTuber Taxes in Washington - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Washington

From crafting compelling content about the Emerald City’s vibrant culture to sharing gaming adventures, being a YouTuber in Washington State offers unique opportunities – and unique tax responsibilities.

As a content creator earning income through YouTube, the IRS considers you self-employed. This means all income generated from your channel must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, earnings exceeding $400 necessitate the payment of self-employment tax, covering both Social Security and Medicare contributions.

How Washington Handles Gig Worker Taxes

Washington is famous for not having a personal income tax, a characteristic that often surprises newcomers. However, the state does levy a Business & Occupation (B&O) tax. This tax applies to the gross receipts of a business, regardless of profitability. For most YouTubers just starting out, or with modest earnings, your gross income likely won’t reach the threshold requiring B&O tax payment. The current threshold varies depending on your business activity, but it’s important to be aware of it as your channel grows. Even if you don't owe B&O tax, you may still be required to register with the Washington State Department of Revenue. Failure to register when required can result in penalties. It’s always best to err on the side of caution and understand your obligations. The Department of Revenue provides detailed information and resources for self-employed individuals, including a guide to B&O tax rates and filing requirements. Keep meticulous records of your income and expenses, as this will be essential for both federal and potential state tax obligations. Understanding these nuances is key to remaining compliant and avoiding unexpected tax liabilities.

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

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your YouTube business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as editing suites! “Regular use” implies consistent and frequent use 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 costs of essential equipment like computers, cameras, microphones, lighting, and editing software (such as Adobe Creative Cloud subscriptions) are generally deductible as business expenses. This includes the full purchase price of items with a useful life of less than one year.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your YouTube channel. For example, if 75% of your internet usage is for uploading videos, editing, and research, you can deduct 75% of your internet bill.

Note on Mileage: As a home-based YouTuber, mileage deductions are less common. However, if you occasionally travel for client meetings, collaborations, or to purchase equipment specifically for your channel, you can deduct those business-related miles using the standard mileage rate (set annually by the IRS).

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax effectively covers both the employer and employee portions of these taxes, as you are both the employer and employee when self-employed. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).