Washington taxes

Personal income — 2026

Washington does not currently have an individual income tax. This profile describes 2026 and must not be read as a permanent exemption for future years. [1]

The Department of Revenue states that a new 9.9% individual income tax begins January 1, 2028, for individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million. The first returns are due in 2029. This future tax is distinct from the existing capital gains excise tax. [1]

Capital gains

A separate excise tax applies to certain long-term capital gains allocated to Washington. Beginning with tax year 2025, the first $1 million of taxable Washington capital gains is taxed at 7%; taxable gains above that amount carry an additional 2.9%, for a 9.9% marginal rate on the excess. This is not a tax on all sale proceeds. [2] [3]

Real estate and assets held in certain retirement accounts are exempt. The standard deduction is adjusted annually. The official page lists $278,000 for 2025; that amount should not be substituted for a 2026 deduction without year-specific confirmation. Other exemptions, deductions and allocation rules can change the taxable amount. [2]

Retirement

For 2026, Washington has no general individual income tax. The capital gains tax separately exempts assets held in certain retirement accounts; check the account and asset rules rather than treating every investment sale as exempt. [1] [2]

Sales and use tax

Washington sales and use tax rates depend on the location. The Department of Revenue provides address-based rate lookup and current local-rate tables. Use the applicable combined rate for the transaction. [4]