Washington State Tax Guide
Washington State tax rates and rules for income, sales, property, gas, cigarette, and other taxes that impact residents.


Katelyn Washington
Washington state tax: Overview
Washington is one of the nine states that don't tax income, and property taxes are close to the national average.
Washington has a relatively high sales tax rate compared to other states and a somewhat controversial capital gains tax that was recently upheld by the state's Supreme Court. Much of Washington residents' tax burden depends on the type of income they have and which city they live in.
[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.]

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.
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.
Washington sales tax
Washington's state sales tax rate is 6.5%. Localities can add up to 2.88% to that, with the average combined rate at 9.38%, 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.
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 exempted 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.
Related Content
Get Kiplinger Today newsletter — free
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.
- Katelyn WashingtonFormer Tax Writer
-
The Best Health Care Stocks to Buy
The best health care stocks offer investors a defensive hedge in an uncertain market. Here's how to find them.
-
Tapping Your 401(k) at 55 Isn't the Great Plan You Think it Is. Here's Why
It's tempting to dip into your 401(k) at 55. But beware — you may rue that decision later. Here's what to do instead.
-
Ten Cheapest Places To Live in New York
Property Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s Tariffs
Tariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
-
Three Things Star Wars Fans Taught Me About Tax
Tax Tips May the force be with you and your taxes this Star Wars Day 2025.
-
Retirees: Don’t Miss These Valuable State Tax Breaks in 2025
Retirement Planning Selecting the right state for retirement can significantly impact your financial well-being.
-
10 Cheapest Places To Live in Florida
Property Tax Make your Florida vacation spot a place for daily living — these counties have the lowest property tax bills in the state.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax Refunds
Tax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
-
Which Generation Pays the Most Tax in the US?
Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and Discounts
Tax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.