What is the Washington sales tax rate?

The combined state + average local sales tax rate is about 9.38%.

How are capital gains taxed in Washington?

Washington taxes long-term capital gains at roughly 7.00%, on top of federal LTCG and 3.8% NIIT.

Is retirement income taxed in Washington?

No state tax on retirement income. Specific exclusions vary by age and AGI.

What is the property tax rate in Washington?

The average effective property tax is 0.98% of assessed value. Local rates vary widely by county and city.

Does Washington tax Social Security?

No — Social Security benefits are exempt from Washington income tax.

What filing deadlines apply in Washington?

Washington follows the federal April 15 deadline. Extensions are typically granted on request — see the state DOR for current forms.

Are pension distributions taxable in Washington?

No — pension income is fully exempt.

Does Washington have an estate or inheritance tax?

Federal estate tax applies above the unified credit; only a handful of states levy their own estate or inheritance tax. Verify current rules with a CPA.

Is the standard deduction the same as federal?

Washington has no income tax, so no state deduction applies.

Can I deduct state taxes on my federal return?

Yes — state + local taxes (SALT) are deductible up to $10,000 if you itemize. The cap is set in current law through 2025; check 2026 status before filing.

Does Washington accept the federal EITC?

Many states offer a state EITC matched as a percentage of the federal credit. Eligibility tracks the federal rules.

Are there local income taxes in Washington?

Washington generally does not impose local income taxes beyond the state rate.

Where can I find official Washington tax forms?

Visit the Washington Department of Revenue or Department of Taxation site for current forms, brackets, and credits.

How often does TaxEase update this guide?

Annually after IRS Revenue Procedures publish, and within 14 days for any major state legislative change. See our Editorial Policy.

Washington Tax Guide 2026

Everything residents of Washington need to know about state taxes in 2026 — income brackets, property tax, sales tax, capital gains, retirement, and small-business taxation, with planning tips aligned to current IRS guidance.

At a glance

Income tax system

No personal income tax

Effective income rate

None

Capital gains

7.00%

Property tax

0.98%

Combined sales tax

9.38%

Retirement income

No state tax on retirement income

Income tax

Washington uses a no personal income tax. The average effective rate on wage income is 0% — there is no state income tax. Federal tax still applies; see our income tax calculator for a full breakdown.

Property tax

Effective property tax averages 0.98% of assessed home value. On a $400,000 home that is roughly $3,920 per year. Run your own number with the property tax calculator.

Sales tax

Combined state + local sales tax averages 9.38%. Some categories (groceries, prescription drugs, clothing) may be exempt or taxed at a lower rate.

Capital gains

Washington taxes long-term capital gains at approximately 7.00%. Federal rates of 0/15/20% plus 3.8% NIIT above MAGI thresholds apply on top.

Estimate yours with the capital gains calculator.

Retirement taxation

No state tax on retirement income. Adjust contributions in our calculators to model the impact of pre-tax 401(k) / Traditional IRA contributions on your Washington liability.

Business taxation

No wage income tax; 7% capital-gains tax over $270k; B&O on gross receipts.

Washington tax credits & deductions

Earned Income Tax Credit (state match)
Child & Dependent Care credit
Residential energy credit

Eligibility usually depends on AGI, filing status, and residency. Verify current-year rules with the Washington Department of Revenue or a CPA.

Planning tips for Washington residents

Maximize pre-tax retirement contributions to reduce state taxable income.
Bunch itemizable deductions into a single year when above the standard deduction.
Time long-term capital gains for years of lower other income.
Relocating from a high-tax state? Check residency rules — most high-tax states audit aggressively for partial-year claims.