Washington State Tax Guide
State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Washington residents.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter
Bottom Line
Middle-Class Families: Most Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)
The Evergreen State is one of nine states with no personal income tax. However, sales taxes in Washington are extremely high. At 9.29%, the state's combined state and local sales tax rate is the 4th-highest in the nation.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Property taxes in Washington are more reasonable, though. In fact, the median property tax rate is close to the national average.
Washington is also one of a handful of states with an estate tax.
Washington Income Taxes
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 the courts. A lower court has ruled the tax is unconstitutional, but the Washington Supreme Court has put the lower-court ruling on hold until it can address the matter.)
Washington 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: Exempt
- Clothing: Taxable
- Motor Vehicles: Taxable (6.5% ordinary rate, plus additional 0.3% tax)
- Prescription Drugs: Exempt
Washington Real Property Taxes
In Washington, the median property tax rate is $836 per $100,000 of assessed home value.
Washington Property Tax Breaks for Retirees
A property tax exemption program is available for people who are 61 or older by the year before the tax is due. The homeowners must have a combined disposable income below the county set limit (county limits range from $40,000 to $58,423). The amount of the property tax reduction is based on the applicant's income, value of the residence, and local levy rates.
Seniors 60 or older who have disposable income below the county-based threshold may also qualify for the state's tax-deferral program (the thresholds range from $45,000 to $67,411). The program allows qualified seniors to defer property taxes or special assessments on their residence. The state pays the taxes on behalf of the homeowner and files a lien to indicate that the state has an interest in the property. The deferred taxes, plus 5% interest, must be repaid to the state when the owner passes away, sells or moves from the home.
Washington Motor Fuel Taxes
Gasoline: 49.4¢ per gallon.
Diesel: 49.4¢ per gallon.
Washington Sin Taxes
Cigarettes and little cigars: $3.03 per pack
Cigars: 95% of sale price, with a cap of $0.75 per cigar
Moist snuff: $2.53 per 1.2-ounce container
Other tobacco products: 95% of sale price
Vapor products: Closed products, $0.27 per ml; open containers greater than 5 ml, $0.09 per ml
Beer: $0.26 per gallon
Wine: $0.87 per gallon
Liquor: $14.27 per gallon, plus 20.5% "Spirits Sales Tax"
Marijuana: 37% excise tax
Washington 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.
Rocky was a Senior Tax Editor for Kiplinger from October 2018 to January 2023. He has more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.
-
-
Can the Earned Income Tax Credit Help You? (Or Someone You Know)?
The IRS and community partners want to improve earned income tax credit awareness.
By Kelley R. Taylor • Published
-
Financial Wellness Is Self-Care: 3 Steps to Help Improve Your Financial Well-Being
Many people resolve in the new year to get healthier. Taking charge of your financial wellness can help improve your physical health by lowering your anxiety about money issues.
By Kara Duckworth, CFP®, CDFA® • Published
-
Can the Earned Income Tax Credit Help You? (Or Someone You Know)?
The IRS and community partners want to improve earned income tax credit awareness.
By Kelley R. Taylor • Published
-
Tax Season is Here. What to Know Before You File
The IRS is accepting tax returns for the 2023 tax season, but there are some key things to know before you file.
By Kelley R. Taylor • Published
-
When Can You File Taxes in 2023?
tax filing If you're an early bird when it comes to filing your tax return, there's good news from the IRS.
By Rocky Mengle • Published
-
New EV Tax Credit Gets Complicated for 2023
More car models qualify for the full federal electric vehicle tax credit for a little while, but then what?
By Kelley R. Taylor • Published
-
When Are Taxes Due in 2023? Tax Deadlines by Month
tax deadline Know the tax deadlines that apply to you, so you don't get hit with IRS penalties or miss out on a valuable tax break.
By Rocky Mengle • Published
-
State "Stimulus Checks" in 2023 – Which States Are Still Sending Payments
Residents in a handful of states could still receive a tax rebate check or other payment in 2023.
By Rocky Mengle • Last updated
-
What's the Gift Tax Exclusion for 2023?
Plan on giving cash or property to family or friends? Keeping it below the annual gift tax exemption can help you save both time and money.
By Rocky Mengle • Published
-
Top Tax Stories of 2022 (That Still Matter for 2023)
Kiplinger highlights some of its top tax stories of 2022 about topics that can still impact your finances in 2023.
By Kelley R. Taylor • Published