What Washington does and doesn't tax
Washington has no tax on wages, salaries, tips, pensions, IRA withdrawals or Social Security. Washington taxes only long-term capital gains: 7% above an annual standard deduction and 9.9% on gains over $1 million. That tax is filed once a year on its own return and is never withheld from paychecks.
Federal income tax still applies in full — the 2026 federal brackets run from 10% to 37% — and Social Security (6.2%) and Medicare (1.45%) come out of every paycheck. Washington also withholds PFML (up to 0.807% of wages up to $184,500, 71.43% of the 1.13% premium) and WA Cares (0.58% of all wages for long-term care, with no cap). If you earn wages in a state that taxes income, for example by commuting across a border, that state can tax the wages earned there.
Income tax you avoid at common incomes
What a single filer would owe Oregon, the nearby state with the highest tax at $75,000, compared with $0 in Washington:
| Income | Washington | Oregon |
|---|---|---|
| $30,000 | $0 | $1,668 |
| $50,000 | $0 | $3,208 |
| $75,000 | $0 | $5,059 |
| $100,000 | $0 | $7,152 |
| $150,000 | $0 | $12,806 |
| $250,000 | $0 | $22,706 |
Washington compared with nearby states
At $75,000 (single), Washington ranks 43 (tied with 8 others) of 51 for state income tax, where 1 is the highest; 9 jurisdictions charge nothing at this income.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| Washington | $0 | 0% | none |
| Idaho | $2,867 | 3.82% | 5.3% |
| Oregon | $5,059 | 6.74% | 9.9% |
More about taxes in Washington
- Washington's capital gains tax is 7% on long-term gains above an annual deduction ($278,000 for 2025), plus 2.9% more on gains over $1 million from 2025.
- A 9.9% tax on household income over $1 million, enacted in 2026, is scheduled to apply starting January 1, 2028.
- Businesses pay the business and occupation (B&O) tax on gross receipts rather than an income tax.
Frequently asked questions
Does Washington have a state income tax?
Not on wages. Washington has no tax on salaries, hourly pay, pensions or Social Security. Washington taxes only long-term capital gains: 7% above an annual standard deduction and 9.9% on gains over $1 million.
How much does living in Washington save on income tax?
On $75,000 of income, a single filer pays $0 to Washington; 9 of 51 jurisdictions charge nothing at that income. Nearby, Oregon would charge about $5,059.
Do I still pay federal income tax in Washington?
Yes. Federal income tax, Social Security and Medicare apply in every state. Washington residents who earn wages in a state that does tax income can also owe that state tax on those wages.
What other taxes do Washington residents pay?
Washington's capital gains tax is 7% on long-term gains above an annual deduction ($278,000 for 2025), plus 2.9% more on gains over $1 million from 2025. A 9.9% tax on household income over $1 million, enacted in 2026, is scheduled to apply starting January 1, 2028.
Estimates only — not tax advice. Washington figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026). Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.