Income Tax for Washington (2026)

How This Calculator Works in Washington

This calculator confirms that Washington has no state income tax and helps you compare your overall tax situation with neighboring states. It can help you understand the tax savings of living in a no-income-tax state.

Washington Overview

Washington has no traditional income tax on wages and salaries, but enacted a 7% capital gains tax on gains exceeding $250,000 in 2021. The state funds itself through sales taxes (combined rates exceeding 10% in Seattle), the Business & Occupation gross receipts tax, and property taxes. Washington's tax structure is often cited as regressive because sales and excise taxes disproportionately affect lower-income residents.

How Washington Compares

Washington's top income tax rate of 0% compares to Oregon at 9.9% and Idaho at 5.8%. The absence of income tax makes it one of the most favorable states for high earners.

Washington's income tax rate of 0% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Washington Residents

• 1Washington has no traditional income tax on wages and salaries, but enacted a 7% capital gains tax in 2021 on the sale of stocks, bonds, and other assets with gains exceeding $250,000 per year.
• 2The state has a 6.5% sales tax, with local additions that can push combined rates above 10% in Seattle and other urban areas — among the highest in the nation.
• 3Washington's Business & Occupation (B&O) tax applies to gross receipts (not net income), with rates varying by industry from 0.138% to 3.3%, and it is a significant cost for businesses.
• 4If you sell stocks or other capital assets, you may owe Washington's capital gains tax even though there is no traditional income tax — plan accordingly for gains above $250K.
• 5Property taxes in Washington average about 1.03% of home value. King County (Seattle) tends to be higher due to voter-approved levies for transit and schools.

Frequently Asked Questions