Graphic Designer Taxes in Washington - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Washington?

Yes, your income as a graphic designer is taxable, but the specifics differ from most states. Federally, the IRS treats graphic design income earned as a business, meaning you'll report your earnings and expenses on Schedule C (Profit or Loss From Business) as part of your Form 1040. This schedule determines your net profit (income minus expenses), which is then subject to income tax.

Washington State is unique – it does not have a state income tax. However, this doesn't mean you avoid all state taxes. Washington does have a Capital Gains tax, currently applicable to profits from the sale or exchange of certain assets exceeding $250,000. Generally, your graphic design income itself isn't subject to this tax, but if you were to sell a significant business asset (like equipment) at a profit, that sale could trigger the capital gains tax. It's crucial to stay updated on Washington's capital gains tax laws as they are subject to change.

Top Tax Write-offs for Graphic Designers

As a graphic designer, you have several opportunities to reduce your taxable income. Here are some key deductions:

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud, Affinity Suite, or font subscriptions are fully deductible. If the software has a useful life of more than one year, you may need to depreciate it, but Section 179 expensing often allows you to deduct the full cost in the year of purchase (subject to limitations).
• Computer & Equipment: Your computer, monitor, printer, drawing tablet, and other equipment used for your graphic design business are deductible. Similar to software, you can often use Section 179 expensing for these items.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your graphic design business, you can deduct expenses related to that space (rent/mortgage interest, utilities, insurance, etc.). There's a simplified method based on square footage, or you can calculate actual expenses.
• Mileage & Transportation: When you drive for business purposes (client meetings, supply purchases), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile (verify the final IRS rate at IRS.gov). Alternatively, you can deduct actual car expenses (gas, oil, repairs, insurance, depreciation).

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're both the employer and the employee. This means you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This is known as Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You report this on Schedule SE (Self-Employment Tax). The good news is you get to deduct one-half of your self-employment tax from your gross income.

Remember, self-employment tax applies to your net earnings (profit) from Schedule C over $400. Don't be alarmed when you see this amount – it's a normal part of being self-employed!

Closing Tip for Washington Residents

Navigating taxes as a self-employed graphic designer can be complex. While Washington State doesn't have income tax, careful record-keeping is still essential to maximize your deductions and ensure compliance with federal tax laws, and any applicable state taxes like the Capital Gains tax. Consider using accounting software or consulting with a qualified tax professional (like myself!) to help you stay organized and confident throughout the year. I wish you a profitable and tax-efficient 2024!