Taxes in Washington

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.

Washington Tax Rates

State Sales Tax	6.5%
Avg State/Local Sales Tax	9.29%
Gas Tax	$0.49 per gallon
Diesel Tax	$0.49 per gallon
Cigarette Tax	$3.03 per pack
Income Tax	0%
Effective Tax Rate:	0%
Property Tax	0.98%
Social Security Tax	None
Medical/Dental Deduction:	Federal Amount
Federal Income Tax Deduction:	Partial
Retirement Tax	No

Washington State Taxes Explained

Washington Sales Tax

6.5%, but municipalities can add up to 4%. The average combined rate is 9.29%. Groceries and prescription drugs are exempt.

Washington Income Taxes

Washington has no state income tax.

Washington Property Taxes

The average effective property tax rate in Washington is 0.98%, or $3,326 on the median home value of $339,000. 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 Estate and Inheritance 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 valued under $6 million.

For further information, visit the Washington Department of Revenue.