Washington Income Tax
Washington has no state income tax. This makes it one of the most attractive states for high earners and retirees. You will still owe federal income tax.
Washington Sales Tax
The state sales tax rate in Washington is 6.5%. With an average local sales tax of 2.72%, the combined average sales tax rate is 9.22%.
This is one of the highest combined sales tax rates in the country. Budget accordingly for large purchases.
Washington Property Tax
The effective property tax rate in Washington is 0.94%. With a median home value of $512,600, the median annual property tax bill is $4,624 ($385/month).
Corporate & Business Taxes
The corporate tax rate in Washington is 0%. Washington does not impose a traditional corporate income tax, making it attractive for businesses.
Other Taxes in Washington
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.49/gallon |
| Cigarette Tax | $3.02/pack |
| Estate Tax | Yes |
| Inheritance Tax | No |
Key Facts
No income tax but 7% capital gains tax on gains above $262K. High sales tax. Estate tax on estates above $2.193M.
Compare to Other States
See how salaries compare on our average salary in Washington page. Thinking about starting a business? Check our LLC guide for Washington. See the current minimum wage in Washington.
Financial Calculators
Plan your finances in Washington with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford