Facts & Figures 2024: How Does Your State Compare?
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.
2 min read
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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Featured Articles
2024 State Business Tax Climate Index
In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.
111 min read
State and Local Tax Burdens, Calendar Year 2022
Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
24 min read
State Individual Income Tax Rates and Brackets, 2024
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?
8 min read
State Corporate Income Tax Rates and Brackets, 2024
Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
7 min read
State and Local Sales Tax Rates, 2024
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
9 min readAll Related Articles
Can States Afford Their Recent Tax Cuts?
With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?
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Economic Nexus Treatment by State, 2024
Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer.
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Taxes and Migration: New Evidence from Academic Research
Do taxes affect individuals’ decisions regarding where to live and work? Can high taxes cause the outmigration of wealthy individuals?
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Tangible Personal Property De Minimis Exemptions by State, 2024
Does your state have a small business exemption for machinery and equipment?
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State Individual Income Tax Rates and Brackets, 2024
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?
8 min read
The State Flat Tax Revolution: Where Things Stand Today
In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.
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Blog
Short FormHow Are Remote and Hybrid Workers Taxed?
Working from home is great. The tax complications? Not so much.
4 min read
State and Local Sales Tax Rates, 2024
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
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State Corporate Income Tax Rates and Brackets, 2024
Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
7 min read
Americans Moved to Low-Tax States in 2023
The pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.
5 min read