Quick Answer
Seattle does not currently have a head tax that applies to freelancers. The city repealed its head tax in 2018 after one month. Freelancers in Seattle pay standard federal and Washington state taxes (no state income tax), plus Seattle's business license fee if earning over $12,000 annually.
Best Answer
James Okafor, Self-Employment Tax Specialist
Established freelancers who need to understand Seattle's current tax requirements
Do freelancers pay the Seattle head tax?
No, freelancers do not pay a Seattle head tax because there isn't one. Seattle briefly enacted a head tax on large employers in May 2018 but repealed it one month later due to political opposition. The tax was designed to affect only businesses with gross revenues over $20 million annually, which would never apply to individual freelancers.
Seattle's actual tax requirements for freelancers
While there's no head tax, Seattle freelancers do have specific local tax obligations:
Seattle Business License
If you earn $12,000 or more annually from freelance work while living or working in Seattle, you need a Seattle business license. The cost varies by business type:
Seattle Business & Occupation (B&O) Tax
Seattle imposes a B&O tax on gross receipts (not net income). However, most freelancers qualify for the small business credit:
Example: Seattle tax calculation for freelancers
Let's look at three freelancer scenarios:
Scenario 1: Web Designer earning $35,000
Scenario 2: Consultant earning $80,000
Scenario 3: Part-time freelancer earning $8,000
Washington state context
Seattle freelancers benefit from Washington's tax structure:
This means your total income tax burden consists of federal taxes only, making Washington attractive for high-earning freelancers.
Head tax history and current status
Seattle's head tax saga unfolded quickly in 2018:
Since then, Seattle has not enacted any new head taxes. Political discussions continue about addressing homelessness funding, but no concrete proposals affecting freelancers have emerged.
What Seattle freelancers should do
1. Track your annual income: If you'll earn $12,000+ this year, budget for the $110 business license
2. Register by deadline: Business license is due by the last day of the month you hit $12,000 in earnings
3. Understand B&O tax: File quarterly if you owe more than the small business credit
4. Keep records: Seattle may audit business license and B&O tax filings
5. Plan for federal taxes: Since there's no state income tax, focus on federal quarterly estimates
[Use our quarterly estimator](quarterly-estimator) to calculate your federal estimated tax payments and plan for Seattle's business license fee.
Key takeaway: Seattle has no head tax affecting freelancers. Main obligation is a $110 annual business license if earning $12,000+, plus minimal B&O tax for higher earners. No state income tax makes Washington attractive for freelancers.
Key Takeaway: Seattle has no head tax affecting freelancers. Main obligation is a $110 annual business license if earning $12,000+, plus minimal B&O tax for higher earners.
Seattle tax obligations for freelancers at different income levels
| Annual Income | Business License | B&O Tax | Small Business Credit | Total Seattle Taxes |
|---|---|---|---|---|
| $8,000 | Not required | $0 | $0 | $0 |
| $35,000 | $110 | $70 | -$70 | $110 |
| $55,000 | $110 | $110 | -$110 | $110 |
| $80,000 | $110 | $160 | -$110 | $160 |
More Perspectives
James Okafor, Self-Employment Tax Specialist
First-year freelancers confused about Seattle tax rumors and requirements
Seattle head tax confusion for new freelancers
If you're new to freelancing in Seattle, you might have heard conflicting information about a "head tax" or "employee tax." The good news: there is no Seattle head tax that affects individual freelancers.
What you actually need to know
As a new freelancer in Seattle, your main local obligation is potentially getting a business license if you earn $12,000 or more in a calendar year. That's it. No complex head taxes, no per-employee fees, no quarterly business taxes for most people.
The $12,000 threshold
Watch your cumulative earnings throughout the year. Once you hit $12,000 in gross freelance income:
Why the head tax rumors persist
Seattle did briefly have a head tax in 2018, but it:
Political discussions about business taxes continue, but nothing currently affects individual freelancers beyond the business license requirement.
Key takeaway: New Seattle freelancers don't pay any head tax—just a $110 business license if earning $12,000+ annually. Focus on federal tax planning since Washington has no state income tax.
Key Takeaway: New Seattle freelancers don't pay any head tax—just a $110 business license if earning $12,000+ annually.
Sources
- Seattle Office of Economic Development Business License Info — Official Seattle business license requirements and fees
- IRS Publication 535 — Business Expenses - includes guidance on deducting business license fees
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.