Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Washington

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The Bottom Line
Map of Washington

Tax-Friendly

The Evergreen State is one of seven states with no broad-based personal income tax. However, combined state and local sales tax rates are some of the highest in the nation, at up to 9.5%. Fuel taxes are also high.

Sales Tax

6% state levy. Municpalities can add up to 3.1% to that, with the average combined rate at 8.89%.

Income Tax Range

Washington has no state income tax.

Motor Fuel Taxes

Gasoline: $0.49 per gallon.
Diesel: $0.49 per gallon.

Property Taxes

The median property tax on Washington's median home value of $266,200 is $2,798.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Washington.

Vehicle Taxes

For vehicle purchases, a 0.3% motor vehicle sales tax is charged on top of sales tax due at the rate of the purchaser’s residence.

Sin Taxes

Cigarettes and small cigars: $3.03 per pack
Cigars: 95% of sale price, with a cap of $0.65 per cigar
Moist snuff: $2.53 per 1.2-ounce container
Other tobacco products: 95% of sale price

Beer: $0.26 per gallon
Wine: $0.87 per gallon ($1.72 per gallon for alcohol content above 14%)
Liquor is taxed by the liter and as a percentage of selling cost; the Tax Foundation calculates this at $33.54 per gallon, the highest in the country.
Marijuana: a range of taxes are in place on newly legalized cannabis; the Tax Foundation estimates that the effective tax on marijuana is about 44%.

Travel Taxes

Hotel: Hotel and motel taxes are set by municipality and range from 1% to 4%. Some localities add per-room, per-night fees as well. Sales tax is due. In Seattle, this adds up to 15.6%.

Rental cars: The state tax rate on rental cars is 5.9%. Franklin, Pierce, King and Spokane Counties add 1%, plus there's an additional 0.8% transit-authority tax in Pierce, King and Snohomish Counties.

Taxes On Wireless Service

18.6%

Inheritance and Estate Taxes

There is no inheritance tax, but estates in excess of $2 million must file a Washington estate-tax return. Tax is due only on the amount above $2 million, with an additional $2.5 million deduction for family-owned businesses valued at less than $6 million. Estate-tax rates range from 10% to 20%.

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