Washington state income tax rates
Washington is one of only nine states that doesn’t charge an individual income tax. However, Washington does tax capital gains income.
Who has to file Washington state taxes?
Washington state residents don’t have to file a personal or corporate income tax return, since the state doesn’t levy those taxes. However, Washington charges a tax on capital gains income.
Individuals who owe capital gains tax must electronically file their capital gains tax return with a copy of their federal tax return and all required documentation. The capital gains tax return is due at the same time as federal taxes are due.
Electronic filing can be waived for “good cause” but that waiver has to be granted before you file the return, according to the Washington State Department of Revenue.
Washington also levies a business and occupation tax, which is a gross receipts tax on business income. The tax rate varies by type of business.
Is there a personal exemption or standard deduction in Washington?
Washington doesn’t offer a personal exemption or standard deduction.
Washington sales tax rate
Washington has a state sales tax of 6.5 percent, plus local sales taxes, which vary by location.
Some items are exempt from sales tax, including some farm products and health-related products.
Other things to know about Washington taxes
- Washington property taxes are levied by local governments. The effective (average) property tax rate is 0.76 percent, according to the Tax Foundation. Real property tax deferrals and exemptions are allowed for senior citizens and disabled taxpayers.
- Washington does not collect inheritance taxes but there is an estate tax.
- A state litter tax is imposed on manufacturers, wholesalers and retailers “of certain products which contribute to the litter problem” in the state, including groceries, cigarettes, soft drinks, newspapers and other items. The litter tax is 0.015 percent of the taxable amount of the product.
- The gasoline tax is 49.4 cents per gallon.
- The cigarette tax is $30.25 per carton, which works out to $3.025 per pack.
- Washington state has two types of liquor tax — a spirits sales tax and a spirits liter tax. For the spirit sales tax, the general public pays 20.5 percent, and retailers like restaurants and bars pay 13.7 percent on purchases from distributors and distillers. For the spirits liter tax, the general public pays $3.7708 per liter and retailers pay$2.4408 per liter.
- There is a marijuana tax of 37 percent that retailers must pay on cannabis and cannabis-infused products to the Liquor and Cannabis Board.