Washington Tax Guide
0%state income tax
Washington has no state income tax but does levy an estate tax and a capital gains tax on gains over $250,000. The state relies on sales tax as its primary revenue source. Amazon, Microsoft, Boeing, and Starbucks are all headquartered here.
Washington Tax at a Glance
Income Tax
None
No state income tax
Sales Tax
6.5%
State-level rate
Property Tax
1.03%
Near the national average for property tax
Estate Tax
Yes
State-level estate/inheritance tax
How Washington Compares to the National Average
Notable Tax Facts
- No state income tax on wages or salaries
- Enacted a 7% capital gains tax on gains over $250,000 in 2022 (upheld by state supreme court)
- Has an estate tax with a $2.193 million exemption — one of the lowest in the nation
- State sales tax of 6.5% plus local additions can push combined rates to over 10%
- Home to Amazon, Microsoft, Boeing, Starbucks, and Costco
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Washington Tax FAQ
Does Washington have income tax?
Washington has no state income tax on wages or salaries. However, the state enacted a 7% tax on capital gains over $250,000 in 2022, which was upheld by the state supreme court.
What is Washington's capital gains tax?
Washington taxes long-term capital gains exceeding $250,000 at 7%. This was enacted in 2022 and excludes real estate and retirement account gains.
Does Washington have an estate tax?
Yes. Washington has an estate tax with an exemption of $2.193 million. The top rate of 20% is one of the highest estate tax rates in the nation.
What is the sales tax in Washington?
Washington's state sales tax is 6.5%. Local taxes can push combined rates to over 10% in cities like Seattle (10.25%). There is no state income tax to offset the high sales tax.
Is Washington tax-friendly for tech workers?
For high-salaried tech workers, very much so — no income tax means significant savings. But those with large capital gains or significant estates face taxes that most no-income-tax states don't levy.
Compare With Other States
Other No-Income-Tax States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.