Washington state tax is friendly in some ways. It is one of the nine states that don't tax income, and property taxes are close to the national average. Of course, other taxes in Washington can make the state less tax-friendly.
Washington has one of the highest sales tax rates in the country, and it has other taxes that many other states don't. Much of Washington residents' tax burden depends on the type of income they have and which city they live in.
[Data for this state tax guide was gathered from a number of sources including the U.S. Census Bureau, the state’s government website, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
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Washington State Tax: Income Taxes
There is no state income tax in Washington, making it a generally affordable state for middle-class families and retirees. However, no income tax also means no state tax refunds.
Washington Sales Tax
Washington's state sales tax rate is 6.5%. Municipalities can add up to 4.1% to that, with the average combined rate at 8.86%, according to the Tax Foundation (opens in new tab). Thankfully, not everything in the state is taxable.
- Groceries are tax exempt.
- Prescription drugs are not taxable.
How Much Are Property Taxes in Washington?
In Washington, the average effective property rate is 0.94%. Even with this rate, median property taxes are $3,752.
Washington Property Tax Breaks for Retirees
Property tax exemption program: Qualified homeowners may have their property taxes reduced. Additionally, this program can prevent excess taxes if the market value increases by freezing the home's taxable value. To qualify for this program, you must meet specific requirements by the end of the assessment year.
- Must be at least 61 years of age (at least 57 if the surviving spouse of a qualified participant)
- Must own your home
- Must have lived in the home for more than half the year
- Combined disposable income must not exceed the county threshold (opens in new tab).
Property tax deferral: Adults 60 or older who have disposable income below the county-based threshold may also qualify for the state's tax-deferral program.
The program allows qualified homeowners to defer property taxes or special assessments on their residence. The state pays the taxes on behalf of the homeowner and files a lien to indicate that the state has an interest in the property. The deferred taxes, plus 5% interest, must be repaid to the state when the owner passes away, sells or otherwise moves from the home.
Washington Motor Vehicle Taxes
Motor vehicle purchases are subject to state and local sales taxes, with an additional 0.3% tax.
Tax on gasoline is $0.494 per gallon, which is one of the highest rates in the country.
Washington Sin Taxes
| Cigarettes and little cigars | $3.03 per pack |
| Cigars | 95% of sale price |
| Moist snuff | $2.105 per ounce |
| Other tobacco products | 95% of sale price |
| Vapor products (closed) | $0.27 per ml |
| Vapor products (open containers) | $0.09 per ml (if over 5 ml) |
| Beer | $0.26 per gallon |
| Wine | $0.87 per gallon |
| Liquor | $14.27 per gallon (plus 20.5% retail sales tax) |
| Marijuana | 37% excise tax for recreational use |
Washington Estate and Inheritance Taxes
An estate tax is imposed by Washington on estates exceeding $2.193 million (the exemption threshold is subject to adjustment each year for inflation). Tax rates range from 10% to 20%. The state offers an additional $2.5 million deduction for family-owned businesses valued at less than $6 million.
There is no inheritance tax in Washington.
Washington Capital Gains Tax
Washington's capital gains tax is 7% on the sale or exchange of individual long term capital assets (e.g., stocks, bonds, business interests, etc.) that exceed $250,000. Only the portion of gains above the threshold is subject to the tax and some assets are exempted from the tax (opens in new tab).
The capital gains tax was challenged in court, but the Washington Supreme Court upheld the capital gains tax in March 2023, as a valid excise tax under the state's constitution.
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