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Taxes In Washington

Washington Tax Rates, Collections, and Burdens

How does Washington’s tax code compare? Washington does not have a typical individual income tax but does levy a 7.0 percent tax on capital gains income. 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 9.38 percent. Washington has a 0.76 percent effective property tax rate on owner-occupied housing value.

Washington has an estate tax. Washington has a 52.8 cents per gallon gas tax rate and a $3.025 cigarette excise tax rate. The State of Washington collects $6,644 in state and local tax collections per capita. Washington has $11,632 in state and local debt per capita and has a 103 percent funded ratio of public pension plans. Overall, Washington’s tax system ranks 35th on our 2024 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Washington is no exception. The first step towards 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 2024: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
Does Not Have an Individual Income TaxSee Full Study
State Local Individual Income Tax Collections per Capita
$0Rank:
State and Local Tax Burden
9.8%Rank: 24See Full Study

Business Taxes

Top Corporate Income Tax Rate
Does Not Have Top Corporate Income Tax RateSee Full Study
State Business Tax Climate Index Ranking
28See Full Study

Sales Taxes

State Sales Tax Rate
6.5%Rank: 9See Full Study
Average Local Sales Tax Rate
2.36%See Full Study
Combined State and Average Local Sales Tax Rate
8.86%Rank: 6See Full Study
State and Local General Sales Tax Collections per Capita
$2293Rank: 2
State Gasoline Tax Rate (cents per gallon)
49.4¢Rank: 8
State Cigarette Tax Rate (dollars per 20-pack)
$3.025Rank: 10

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.87%Rank: 29
State and Local Property Tax Collections Per Capita
$1727Rank: 22

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