Capital Gains Tax for Washington (2026)
Washington (WA) Key Facts
State Capital Gains Rate
7%
Taxed As
Separate capital gains excise tax
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Washington
This calculator estimates your combined federal and Washington capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Washington Overview
Washington imposes a 7% tax on long-term capital gains exceeding $250,000, despite having no general income tax. This was upheld by the state Supreme Court in 2023. The tax applies only to long-term gains above $250,000 per year on financial assets, excluding real estate. Most investors remain unaffected due to the high threshold.
How Washington Compares
Washington's capital gains rate of 7% compares to Oregon at 9.9% and Idaho at 5.8%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Oregon | 9.9% | Oregon has a capital gains rate of 9.9%. |
| Idaho | 5.8% | Idaho has a capital gains rate of 5.8%. |
Washington's capital gains rate of 7% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Washington Residents
- 1Washington imposes a 7% tax on long-term capital gains exceeding $250,000 per year, despite having no general income tax.
- 2The first $250,000 in annual long-term capital gains is exempt from Washington's 7% tax.
- 3Real estate gains are excluded from Washington's capital gains tax. Only financial asset gains apply.
- 4Federal long-term capital gains rates (0%, 15%, 20%) plus 3.8% NIIT still apply alongside Washington's 7%.
- 5Tax-loss harvesting and timing asset sales across tax years can help keep gains below the $250K threshold.