✓ No State Income Tax
Washington is one of 9 states with no personal income tax. This significantly benefits high earners — and the trade-off is higher sales and property taxes.
Tax Breakdown
| Tax Type | Rate | Notes | Source |
|---|---|---|---|
| State Sales Tax | 6.5% | Applied to most goods. Food exempt. | WA DOR |
| Seattle Sales Tax (total) | 10.35% | Combined state + county + city | WA DOR 2024 |
| Property Tax (avg) | 0.92% | Of assessed value annually. Varies by county. | Tax Foundation 2024 |
| Gas Tax | 49.4¢/gal | 2nd highest in nation | API 2024 |
| Capital Gains Tax | 7% | On gains over $262,000. New in 2022. | HB 1929 |
| Estate Tax | 10-20% | On estates over $2.193M | WA DOR |
| Business & Occupation Tax | 0.138-1.75% | On gross receipts. Rate varies by industry. | WA DOR |
Total Tax Burden Comparison
Estimated total state/local tax burden as % of income (middle-income household):
Washington 10.7%
California 11.5%
Texas 8.6%
Florida 7.7%
New York 12.8%
Source: Institute on Taxation and Economic Policy, 2023