New Payroll Tax Targets Long-Term Care Expenses

Washington is the first state in the U.S. to use payroll deductions to help fund long-term care. Will other states, like California and New York, follow?

red percent sign on wooden block
(Image credit: Getty Images)

There’s another new tax in the state of Washington. The state’s Supreme Court recently upheld a controversial capital gains tax, which has been re-challenged in court and could be on the state’s ballot in November for potential repeal. Now, a first-of-its-kind state payroll tax aims to assist eligible families with a significant challenge — long-term care costs — through a Washington Cares program.

Research has shown that long-term care expenses for those who cannot perform daily tasks independently exceed $100,000 a year for some. Data also reveal that 35% of beneficiaries of long-term care services are under age 65.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.