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 gross receipts tax. Washington has a 6.50 percent state sales rate, a max local sales tax rate of 4.00 percent, and an average combined state and local sales tax rate of 9.29 percent. Washington’s tax system ranks 15th overall on our 2022 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?

Top Individual Income Tax Rate

Does Not Have an Individual Income Tax

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State and Local Individual Income Tax Collections per Capita

$0

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State and Local Tax Burden

10.7%

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Top Corporate Income Tax Rate

Does Not Have a Corporate Income Tax

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State Business Tax Climate Index Ranking

15

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State Sales Tax Rate

6.5%

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Average Local Sales Tax Rate

2.79%

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Combined State and Average Local Sales Tax Rate

9.29%

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State and Local General Sales Tax Collections per Capita

$2260

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State Gasoline Tax Rate (cents per gallon)

49.4¢

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State Cigarette Tax Rate (dollars per 20-pack)

$3.025

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.88%

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State and Local Property Tax Collections Per Capita

$1703

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