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Taxes in Washington
Washington’s tax structure favors income-heavy retirees with no state income tax, but higher sales taxes and an estate tax on larger estates create a more mixed overall tax burden.
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At a glance:
- Washington has no state income tax, making it attractive for retirees relying on retirement income.
- Sales taxes are among the highest in the country, and property taxes vary but include multiple local levies.
- The state does not tax inheritance, but it does impose an estate tax on larger estates.
Washington is one of nine states that do not impose an income tax, however, several other taxes levied by the state are quite high. Below, we explain various Washington state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes. We’ve also provided details about tax credits, exemptions, relief programs, and retirement-related tax breaks.
For information regarding taxes in other states, see Retirement Taxes by State.
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Washington Tax Rates
| State Sales Tax | 6.5% |
| Avg State/Local Sales Tax | 9.38% |
| Gas Tax | $0.528 per gallon |
| Diesel Tax | $0.49 per gallon |
| Cigarette Tax | $3.025 per pack |
| Income Tax | 0% |
| Effective Tax Rate | 0% |
| Property Tax | 0.76% |
| Social Security Tax | None |
| Medical/Dental Deduction | Federal Amount |
| Federal Income Tax Deduction | Partial |
| Retirement Tax | No |
Washington Tax Rates Explained
Washington Sales Tax
6.5%, but municipalities can add up to 3%. The average combined rate is 9.38%. Groceries and prescription drugs are exempt.
Washington Income Tax
Washington has no state income tax.
Washington Property Taxes
The average effective property tax rate in Washington is 0.76%, or $4,477 on the median home value of $589,180. The state has complicated property tax codes with tax limits, various levy calculations and banked capacity for local governments. Contact local tax officials for details specific to the community you want to learn more about.
A property tax exemption is available to taxpayers who, on December 31 the year before the taxes are due, are:
- 61 years of age or older
- Retired due to disability
If not on retirement disability, a veteran of the U.S. armed forces with a combined service-connected evaluation rating of 80% or higher or total disability with no evaluation percentage. The amount of the exemption depends on income level. The amount of the reduction is based on the applicant’s income, home value and local tax levies.
Washington’s tax deferral program covers the cost of property taxes and special assessments for current and delinquent years. The deferred amount accrues 5% simple interest until repaid. Payment is mandatory when the home is sold, no longer used as the primary residence or the applicant dies.
Property tax assistance for widows or widowers of veterans provides relief for those with a combined disposable income of $40,000 or less. Learn more about the state’s tax relief programs on the Washington tax exemption and deferrals page.
Washington Retirement Taxes
Washington does not tax retirement income.
Washington Inheritance and Estate Taxes
Washington has no inheritance tax. The estate tax ranges from 10% to 20% on estates above $2.2 million. Washington offers an additional deduction for family-owned businesses.
For further information, visit the Washington Department of Revenue.