Washington

Sales Tax

  • Statewide: 6.5%
  • Municipalities can levy sales tax of no more than 4.0%.
  • Current average sales tax (with local taxes included): 8.868%
  • Common Exceptions at State Level:
    • Unprepared Food: Exempt
    • Prepared Food: 10%
    • Prescription Drugs: Exempt
  • Gasoline Tax: 67.80 cents/gallon (includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 73.80 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $3.025/pack of 20

 

Personal Income Tax

  • Beginning in 2022, long-term net capital gains of over $250,000 will be taxed at 7%. Litigation is pending regarding this new tax.

 

Property Tax

  • Local municipalities average 0.98% 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): Exemption dependent on income and assessed value. Freeze on property value, all special levies exempt, and possible reduction of regular levies. Household income of less than $40,000 determines eligibility. Deferral program also available if over 60 or disabled.
    • Low 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

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today! 


Financial Resources Join a Chapter

Search