Ahead of the Senate hearing on “Offshore Profit Shifting and the U.S. Tax Code,” I released a report reminding us that contrary to the perception created by these types of political spectacles, corporations pay a...
The facts on Washington’s Tax Climate
0%Individual Income TaxNone
N/ACorporate Income TaxGross Receipts Tax
$1257Property TaxCollections Per Capita
Washington's Individual Income Tax System
Washington levies no individual income tax, joining seven other states with the same policy: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Washington's Corporate Income Tax System
Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Washington Sales and Excise Taxes
Washington levies a 6.5% general sales or use tax on consumers, which is above the national median of 6%. The average local sales tax rate is an additional 2.36%. Washington's state and local governments collect $1770 per person in general sales taxes and $646 per person in excise taxes, for a combined figure of $2416, which ranks highest nationally. Washington's gasoline tax stands at 37.5¢ (9th highest nationally), while its cigarette tax stands at $3.03 (5th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Washington Property Tax Collections Average
Washington's state and local governments collected approximately $1257 per person in property taxes, which ranks 23rd lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 20th in Washington
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Washington taxpayers worked until April 20th (9th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Idaho, April 9th (ranked 15th earliest nationally); Oregon, April 15th (ranked 18th latest nationally); and Alaska, April 6th (ranked 11th earliest nationally).
Washington's State and Local Tax Burden Below National Average
Washington's 2010 tax burden of 9.29% ranks 23rd lowest out of 50 states, and is below the national average of 9.9%. Washington's taxpayers pay $4261 per capita in state and local taxes.
Washington's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Washington's 2013 Business Tax Climate Index Ranks 6
Washington ranks 6th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Idaho, 20th, Oregon, 13th, and Alaska, 4th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
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