Washington Take-Home Pay Calculator (2026)

Washington has no personal income tax on wages. Workers pay no state-level tax on their salaries, tips, or hourly wages. This has been the case since Washington became a state. There have been legislative attempts to impose an income tax over the years, but the state supreme court ruled in 1933 that an income tax would require a constitutional amendment, and that amendment has never been approved by voters.

Washington does impose a capital gains tax on high earners, enacted in 2021 and upheld by the state supreme court in 2023. The tax is 7% on long-term capital gains above $262,000 per year. It is not a general income tax, and it does not affect W-2 wages at all. Workers whose primary income is from employment are not subject to it. The capital gains tax applies primarily to investment sales, stock awards, and business ownership exits.

Washington's budget relies heavily on the sales tax. The base state rate is 6.5%, and local jurisdictions add their own surtaxes. Seattle and surrounding King County charge a combined rate of 10.25%. Other areas have lower combined rates. Washington also has a Business and Occupation (B&O) tax, which applies to business gross receipts rather than profits. Self-employed workers and business owners pay B&O tax, though the amount depends on industry and revenue. W-2 employees are not subject to B&O tax directly.

Workers comparing Washington to neighboring states notice the income tax advantage most clearly against Oregon. Oregon has a top rate of 9.9% and no sales tax. Washington has no income tax but a high sales tax. Workers who earn significant wages and spend conservatively generally fare better in Washington. Workers who spend most of what they earn on taxable goods may find the difference smaller than expected.