Ranking Sales Taxes on the 2023 State Business Tax Climate Index
An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate.
5 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 gross receipts tax. Washington has a 6.50 percent state sales rate, a max local sales tax rate of 4.10 percent, and an average combined state and local sales tax rate of 8.86 percent. Washington’s tax system ranks 28th overall on our 2023 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 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: How Does Your State Compare?
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Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index
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Washington Supreme Court Affirms Capital Gains Tax and Invites Challenge to Broader Income Tax Restrictions
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Facts & Figures 2023: How Does Your State Compare?
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State and Local Sales Tax Rates, 2023
While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
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