Stumped On Taxes? Washington State Tax Rates Made Simple

Many questions arise when it comes tax time. and I have some answers for commonly asked ones!

By the way, Tax Day is Monday, April 15th, 2024.

Some commonly asked questions on non-deductibles are answered here.

So, what is Washington State Sales Tax?

"The State of Washington imposes a 6.5% sales tax on all retail sales as defined by statute (RCW 82.08.020). Cities, towns, counties, transit districts, and public facilities districts may impose additional local sales taxes as described below." - Source

Is there a Washington State Income Tax?

Honestly, I have lived in Washington State all my life and I didn't even know the answer to this question.

"Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (B&O) and/or public utility tax. The business’s gross receipts determine the amount of tax they are required to pay." - Source

Does Washington State have Property Taxes? If So, what is it?

I have yet to own a home but it is good to know what I will be getting into once I stop throwing my money to the wind.

"The state’s average effective tax rate is 0.84%, though high home values mean the median annual property tax payment is $4,061." - Source

What is the average Tax Return in Washington State?

Have you noticed how it fluctuates each year? I'm still in the "gets a refund"  bracket and I'm just glad to be getting something back.

"For the fiscal year 2019, the average tax refund for Washington was $3,351. This ranks as the 10th highest among all 50 states and is lower than the average refund amount of $3,709 nationwide." - Source

Why is Washington States sales tax so high?

Because we don't have income tax, right?

"Because of the lack of a personal income tax, Washington has one of the highest sales tax rates and one of the broadest sales tax bases in the nation. " - Source

Why does Washington State not have Income Tax?

"Washington’s constitution never mentions income taxes in so many words, but it contains a uniformity clause that puts strict limits on property taxes, while—under a voter-approved amendment adopted in 1930—defining property extremely broadly, to include “everything, whether tangible or intangible, subject to ownership.” Nearly a century of case law has held that this definition encompasses income, and thus functionally prohibits the state from adopting an income tax." - Source

A lot of information, but now you are "in the know" for Taxes in Washington State!