Washington

Sales Tax

  • Statewide: 6.5%
  • Municipalities can levy sales tax of no more than 4.1%.
  • Current average sales tax (with local taxes included): 8.92%
  • Common Exceptions at State Level:
    • Unprepared Food: Exempt
    • Prepared Food: 10%
    • Prescription Drugs: Exempt
  • Vehicle Tax: 6.8%
  • Gasoline Tax: 71.22 cents/gallon (includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 77.22 cents/gallon (Includes all state, local, and federal taxes)

 

Personal Income Tax

  • Long-term net capital gains of over $250,000 taxed at 7%.  

 

Property Tax

  • Local municipalities average 0.88% of the property's assessed value.
  • Calculation of assessed value: Fair market value; revalued every year. Tax rate limited to 1% of market value but excludes special levies approved by voters.
  • Relief Programs:
    • 61 and Over or Disabled (Veterans must have 80% service-connected disability)/Surviving Spouses: Exemption dependent on income and assessed value. Freeze on property value, all special levies exempt, and possible reduction of regular levies based on income. Deferral program also available if over 60 or disabled.
    • Limited Income: Deferral program available, dependent on income. 
    • Veteran's Surviving Spouse: Assistance in paying taxes if meet certain requirements.
  • Personal Property Tax: Yes. Rates and exemptions are at the discretion of individual municipalities.

 

Inheritance & Estate Taxes:  Estates over $2.193 million are taxed between 10% and 20%. There is no inheritance tax.

 

Department of Revenue website: www.dor.wa.gov

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