The facts on Washington’s Tax Climate

Washington's Individual Income Tax System
Washington levies no individual income tax, joining six other states with the same policy: Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming.

50-State Table of Individual Income Tax Rates

Washington's Corporate Income Tax System
Washington levies no corporate income tax but does have a gross receipts tax called the Business & Occupation (B&O) tax, with rates ranging from 0.13 percent to 3.3 percent.

50-State Table of Corporate Income Tax Rates

Washington Sales and Excise Taxes
Washington levies a 6.5% general sales or use tax on consumers, which is above the national median of 5.95%. The average local sales tax rate is an additional 2.4%. Washington's state and local governments collect $1,978 per person in general sales taxes and $683 per person in excise taxes, for a combined figure of $2,661, which ranks 3rd highest nationally. Washington's gasoline tax stands at 44.5 cents per gallon, 2nd highest nationally, while its cigarette tax stands at $3.03, 7th highest nationally.

50-State Table of State and Local Sales Tax Rates

Washington Property Tax Collections Average
Washington's state and local governments collected  approximately $1,350 per person in property taxes in 2013, which ranks 23rd nationally.

For 50-state tables of property tax collections, visit our latest web edition of Facts & Figures, or download our mobile app for Apple and Android.

Tax Freedom Day Arrives on April 27th in Washington

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Washington taxpayers have to work until April 27th (40th earliest nationally) to pay their total tax bill.

Washington's State and Local Tax Burden Ranks 28th

Washington's 2012 tax burden of 9.3% ranks 28th highest in the nation, and is below the national average of 9.9%. Washington's taxpayers pay $4,541 per capita in state and local taxes.
Washington's State-Local Tax Burden, 1977-Present

State-Local Burden Rankings (full study)

Washington's 2016 Business Tax Climate Index Ranks 12th

Washington ranks 12th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (28th), individual income taxes (6th), sales taxes (45th), unemployment insurance taxes (23rd), and taxes on property (24th), including residential and commercial property.
State Business Tax Climate Index (full study)

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