How does Washington’s tax code compare? Washington does not have a typical individual income tax but does levy a tax on capital gains income with a top rate of 9.9 percent. Washington does not have a corporate income tax but does levy a state gross receipts tax. Washington has a 6.50 percent state sales tax rate and an average combined state and local sales tax rate of 9.47 percent. Washington has a 0.75 percent effective property tax rate on owner-occupied housing value.
Washington has an estate tax. Washington has a 59.04 cents per gallon gas tax rate and a $3.025 cigarette excise tax rate (per pack of 20 cigarettes). The State of Washington collects $7,431 in state and local tax collections per capita. Washington has $11,709 in state and local debt per capita and a 103 percent funded ratio of public pension plans. Washington’s tax system ranks 45th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Washington is no exception. The first step toward understanding Washington’s tax code is knowing the basics. How does Washington State collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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