FOR IMMEDIATE RELEASE
Contact: Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

OLYMPIA, Wash., April 15, 2026—The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new report outlining the economic benefits and massive tax savings the 20% Small Business Tax Deduction will bring to the 695,695 small businesses in Washington state now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Washington is projected to gain 30,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.9 billion for the first decade and $3.8 billion per year beyond 2035.

View the report for Washington state here.

“It’s a sad commentary that on Tax Day 2026, while small-business owners elsewhere in the nation are taking advantage of a hard-fought and justly won campaign to make the federal 20% Small Business Tax Deduction permanent, using it to hire more workers, give raises, and buy new equipment, small-business owners in Washington state are bracing for whatever gains they might see being offset by the largest tax increase in state history, which passed at the end of the 2025 legislative session, and a new state income tax enacted at the end of this year’s session,” said Patrick Connor, state director for NFIB in Washington.

“The limited ‘small-business tax relief’ contained in the new income tax bill won’t arrive until at least a year after all Business & Occupation Tax base rates increase on January 1, if at all. How much more legislative damage can mom-and-pop enterprises withstand in 2027? Voters should start asking all those candidates claiming to love small business what exactly they plan to do for — or to — our state’s Main Street entrepreneurs and job creators?”

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. This has empowered them to grow, hire, invest in their employees, and give back to their communities. Without action by Congress, this essential tax deduction was set to expire at the end of 2025.

After being passed by Congress, President Trump signed legislation on July 4, 2025, making the Small Business Tax Deduction permanent. This permanent tax relief means America’s small businesses can use more of their hard-earned money to support their business and employees instead of sending it to their state and federal government. It also provides certainty and levels the playing field for small businesses against their large corporate competitors.

Keep up with the latest Washington state small business news at www.nfib.com or on X @NFIB_WA or on Facebook @NFIB.WA

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

NFIB Washington
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