Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Washington state tax rates. Always consult a qualified tax professional.
Washington income tax overview
Washington State has no personal income tax, making it one of nine states with this distinction. The state funds government operations through a 6.5% sales tax (up to 10.4% with local additions), business and occupation (B&O) tax on gross receipts, and property taxes. Washington is home to major employers including Amazon, Microsoft, Boeing, and Starbucks, making it particularly attractive to high-earning tech workers who save significantly compared to neighboring California or Oregon. Note that Washington does have a capital gains tax of 7% on gains above $250,000 introduced in 2023 — one of the only states with capital gains tax but no income tax.
2026 Washington income tax rates
✅ All income — no state income tax
Worked example: $75,000 salary in Washington
A $75,000 salary in Washington results in $0 state income tax, plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $56,682, or $2,180 bi-weekly — same as Texas and Florida.
Key facts: No state income tax · 7% capital gains tax on gains over $250K · High sales tax up to 10.4%
Frequently asked questions — Washington income tax
Yes — Washington introduced a 7% capital gains tax in 2022 on gains above $250,000 from sales of stocks, bonds, and other assets. Real estate is exempt. This is separate from the income tax question — Washington still has no income tax.
A software engineer earning $200,000 in Washington saves roughly $15,000+ per year in state income tax compared to California (which would tax that income at up to 9.3%). Over a career this compounds to hundreds of thousands of dollars.
Washington has no income tax, so Social Security, pensions, IRA withdrawals, and 401k distributions are all completely free from state tax.
The Business and Occupation tax applies to gross receipts of businesses operating in Washington. It affects business owners and self-employed individuals, not regular employees. Rates vary by industry from 0.13% to 1.5% of gross revenue.
No. Washington cities and counties cannot levy local income taxes. The only income-adjacent tax is Seattle's employee hours tax (repealed) and the state-level capital gains tax.
Compare Washington to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.