Washington State Tax Guide 2025
Explore Washington's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Washington compares nationwide.


Navigating the complexities of state taxes can be daunting, but understanding Washington state's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Evergreen State's tax system, from income and sales taxes to property taxes and retirement benefits.
Washington state tax: Overview
Washington is one of only nine states with no income tax, which is a big draw for many residents. Property taxes are fairly average, but where the state stands out is its high sales tax rate.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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.
The state's controversial capital gains tax was upheld by the Supreme Court, adding a new twist to the tax story. How much you pay often depends on the kind of income you have and where you live, making it a bit of a mixed bag for residents.
As Kiplinger has reported, the state's capital gains tax recently increased. For more information, see Washington Approves Capital Gains Tax Increase for 2025.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Washington state Income tax
There is no state personal income tax in Washington. However, unlike other states with no personal income tax, Washington State now has a capital gains tax of 7%.
Washington state retirement taxes
- Pensions: Not taxable
- 401(k) and IRA Distributions: Not taxable
- Social Security: Not taxable
Washington sales tax
Washington's state sales tax rate is 6.5%. Localities can add up to 2.46% to that, with the average combined rate at 8.96%, according to the Tax Foundation.
- Groceries: Exempt
- Prescription drugs: Exempt
- Clothing: Taxable
How much are property taxes in Washington?
In Washington, the average effective property rate is 0.76%.
Washington Property Tax Breaks for Retirees
Property tax exemption program: Qualified homeowners may have their property taxes reduced. Additionally, this program can prevent excess taxes if the market value increases by freezing the home's taxable value. To qualify for this program, you must meet specific requirements by the end of the assessment year.
- Must be at least 61 years of age (at least 57 if the surviving spouse of a qualified participant)
- Must own your home
- Must have lived in the home for more than half the year
- Combined disposable income must not exceed the county threshold.
Property tax deferral: Adults 60 or older with disposable income below the county-based threshold may also qualify for the state's tax deferral program.
The program allows qualified homeowners to defer property taxes or special assessments on their residences.
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 otherwise moves from the home.
For more information on the programs above, see Property tax exemptions and deferrals
Washington gas tax
- Gasoline: $0.45 per gallon
- Diesel: $0.45 per gallon
Source: Sales Tax Handbook
Washington taxes on alcohol and tobacco
Product | Tax Amount |
Cigarettes | $3.03 per pack |
Other tobacco products | 95% of wholesale |
Source: Sales Tax Handbook
Product | Tax Amount |
Wine | $0.87 per gallon |
Beer | $0.26 per gallon |
Liquor | $14.27 per gallon |
Source: Sales Tax Handbook
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.
There is no inheritance tax in Washington.
Washington capital gains tax
Washington's capital gains tax is 7% on the sale or exchange of individual long-term capital assets (e.g., stocks, bonds, business interests, etc.) that exceed $250,000. Only the portion of gains above the threshold is subject to the tax, and some assets are exempt from the tax.
The capital gains tax was challenged in court, but the Washington Supreme Court upheld the capital gains tax in March 2023 as a valid excise tax under the state's constitution.
As mentioned, the levy was recently increased for some for 2025.
Read More
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the senior tax editor at Kiplinger.com, 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.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm 68 and health issues forced me to retire. Should I claim Social Security or use my savings until I'm 70?
We asked financial planning experts for advice.
-
Florida Residents Could Soon Get Property Tax Relief
Property Tax The push for a solution to end high property taxes could lead to significant tax cuts in the Sunshine State next year.
-
New Tax Rules: Income the IRS Won’t Touch in 2025
Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
Tax Brackets 2025 Quiz: How Much Do You Know?
Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
About 40% of Heirs Say They Can’t Afford an Inherited Home
Estate Planning The ‘Great Wealth Transfer’ may not help with high property taxes, soaring homeownership costs, and liquidity issues in 2025.
-
Retirees Face a Growing Capital Gains Tax Trap: What's Next?
Home Sales A changing housing market and unchanged IRS exclusion amounts can add up to a headache for many homeowners. Will Congress offer a fix?
-
New York Inflation Refund Checks Are Coming Soon: What to Know Now
Tax Relief Inflation relief checks are on the way for over 8 million New York taxpayers. Here's a full breakdown of who gets a payment and when you may expect yours.
-
IRS Phasing Out Paper Checks: What Happens After September 30?
Tax Changes Avoid delays when IRS tax refunds and Social Security paper checks are cut off. Here’s what to know.