Washington law

Tax Laws in Washington.

Washington is one of nine states with no state income tax on wages and salaries. In 2021, Washington enacted a state capital gains tax (7% on long-term capital gains above $270,000, indexed), upheld by the Washington Supreme Court in 2023. Washington funds state government through a combination of the retail sales and use tax (6.5% state + local), Business and Occupation Tax (B&O, on gross receipts rather than net income), and real-estate excise tax (REET, graduated up to 3%). Washington has a state estate tax with a $2.193M exclusion — the lowest of any state.

Last verified: 2026-04-20

State law

Key Washington Statutes

Business and Occupation TaxRCW 82.04

Washington's B&O tax — a tax on gross receipts (not net income) with rates varying by business classification. A distinctive feature of Washington tax practice.

Retail Sales and Use TaxRCW 82.08; RCW 82.12

Washington's state sales tax is 6.5%, layered with local sales taxes that can bring combined rates above 10% in some jurisdictions.

Washington Capital Gains TaxRCW 82.87

Washington's 7% capital gains tax on long-term gains above the statutory threshold. Enacted 2021; upheld by the Washington Supreme Court in 2023 (Quinn v. State).

Washington Estate TaxRCW 83.100

Washington's state estate tax with a $2.193 million exclusion (lowest in the U.S.) and graduated rates up to 20%.

State law

Official Sources

Washington Department of Revenue

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Washington.

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Tax Laws in Washington.

Key Washington Statutes

Official Sources

Not Legal Advice

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