California vs Washington Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between California and Washington for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

TaxCaliforniaWashington
State income tax (effective)9.30%None
Long-term capital gains9.30%7.00%
Property tax (effective)0.75%0.98%
Combined sales tax8.82%9.38%
Retirement incomess-exemptno-tax
Income systemprogressivenone

Tax savings calculator

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$
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Estimated 2026 burden

California total tax

$24,568

Washington total tax

$15,720

California state tax

$9,198

Washington state tax

$350

Difference

−$8,848

Washington saves you money

As % of income

7.37%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from California to Washington could save about $8,848 per year on this profile — roughly 7.37% of gross income.

  • Property tax difference on a $400k home: $920/yr.
  • Sales tax difference on $50k of taxable spending: $280/yr.
  • Capital gains difference per $10k gain: $230.

Key differences

  • California: 8.84% corporate tax — highest tier income at 13.3%; mental-health 1% surtax over $1M.
  • Washington: No wage income tax; 7% capital-gains tax over $270k; B&O on gross receipts.
  • Income system: California is progressive, Washington is none.
  • Retirement: Californiass exempt; Washingtonno tax.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

Editor's pick

TurboTax

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Best for in-person backup

4.5·$0 – $115 federal
  • Free in-person review
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  • Easy import from prior software
  • State filing adds up
File with H&R Block

TaxAct

Best value for self-employed

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  • Cheaper than TurboTax/H&R
  • Strong Schedule C tools
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FreeTaxUSA

Best truly-free federal e-file

4.6·$0 federal / $14.99 state
  • Free federal filing for all forms
  • Cheap state filing
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Comparison FAQs

It depends on income mix. Washington has an effective income rate of 0% vs California's 9.30%. Property tax (0.75% vs 0.98%) and sales tax can swing the answer.

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