State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Washington Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Most Tax-Friendly Washington is one of our most tax-friendly states for middle-class families because it doesn't have an income tax. Unfortunately, the burden of other state and local taxes in the Evergreen State is heavier. For example, the average combined state and local sales tax rate for Washington is the fourth-highest in the country. Washington is also one of a handful of states with an estate tax. Income Tax Range Washington has no state income tax. However, beginning in 2022, the state will impose a 7% tax on the sale or exchange of certain long-term capital assets if the profits exceed $250,000 annually. (Note: The constitutionality of the Washington capital gains tax is being challenged in court.) Sales Tax 6.5% state levy. Municipalities can add up to 4% to that, with the average combined rate at 9.29%, according to the Tax Foundation.Groceries: ExemptClothing: TaxableMotor Vehicles: Taxable (6.5% ordinary rate, plus additional 0.3% tax)Prescription Drugs: Exempt Real Property Taxes In Washington, the median property tax rate is $929 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 49.4¢ per gallon. Diesel: 49.4¢ per gallon. Sin Taxes Cigarettes and little cigars: $3.03 per packCigars: 95% of sale price, with a cap of $0.75 per cigarMoist snuff: $2.53 per 1.2-ounce containerOther tobacco products: 95% of sale priceVapor products: Closed products, $0.27 per ml; open containers greater than 5 ml, $0.09 per mlBeer: $0.26 per gallonWine: $0.87 per gallonLiquor: $14.27 per gallon, plus 20.5% "Spirits Sales Tax"Marijuana: 37% excise tax Annual Car Taxes and Fees An annual car registration fee based on a standard fee plus the car's weight is imposed. Additional local fees may apply. Estate and Inheritance Taxes An estate tax is imposed by Washington on estates exceeding $2.193 million (the exemption threshold is subject to adjustment each year for inflation). Tax rates range from 10% to 20%. The state offers an additional $2.5 million deduction for family-owned businesses valued at less than $6 million.