Washington state income tax: Ask anyone who moved to Washington State from California, Oregon, or New York, and there’s a good chance taxes came up in the conversation. Specifically, the part where Washington doesn’t charge one.
Washington is one of only 9 states in the entire country with no state income tax. Zero. No bracket to worry about. No withholding rate to look up. No state tax line on your pay stub taking a percentage of every dollar you earn.
That’s a real financial advantage — especially for workers earning strong tech salaries in Seattle, healthcare wages in Spokane, or skilled trade pay anywhere in between.
But here’s the part that surprises almost every new Washington resident: your paycheck is still smaller than you’d expect. Because even without state income tax, Washington has its own deductions that most people have never heard of before they see them on their pay stub for the first time.
The two big ones are the WA Cares Fund and Paid Family & Medical Leave. They’re unique to Washington, they apply to every worker, and together they take about 1.24% of your gross pay every single paycheck.
This guide breaks down everything — the good news about Washington’s zero income tax, the Washington-specific deductions you do pay, and exactly how much workers take home at different salary levels in 2026.
The Good News First: Washington Has No State Income Tax
Let’s be clear about what this means because it’s genuinely significant.
In a state like California, a worker earning $80,000 a year pays up to 9.3% in state income tax. In Oregon, it’s up to 9.9%. In Michigan it’s 4.25%. Even Arkansas — one of the more affordable states — takes between 2% and 4.4%.
In Washington, the state income tax on that same $80,000 salary is $0.00.
For a worker earning $80,000 in Washington versus the same job in Oregon, that difference can be $5,000 to $7,000 more in take-home pay per year. That’s real money. That’s a car payment, rent reduction, vacation fund, or retirement contribution — every year.
Washington funds its state government primarily through sales tax and business taxes instead of income tax. The state sales tax is 6.5% statewide, with local additions bringing it higher in many areas — Seattle’s combined rate reaches 10.25%. But sales tax is paid only on what you spend, not on everything you earn. For workers who save aggressively or spend modestly, the no-income-tax advantage is significant.
The Two Washington Deductions Nobody Warns You About
Here’s where new Washington workers get surprised.
Washington doesn’t tax your income — but it does run two mandatory programs that every worker contributes to through payroll deductions. If you’ve never worked in Washington before, these will look unfamiliar on your pay stub.
WA Cares Fund (Long-Term Care) — 0.58%
The WA Cares Fund is Washington’s state-run long-term care insurance program. Every Washington worker pays 0.58% of their gross wages into this fund with no income cap — meaning it applies to every dollar you earn, whether you make $30,000 or $300,000 a year.
What do you get for it? Once you’ve worked and contributed for enough qualifying years, you’re eligible for up to $36,500 in long-term care benefits if you ever need help with daily living activities — things like bathing, dressing, or managing medications. The benefit amount adjusts with inflation over time.
On a $75,000 salary, the WA Cares Fund takes about $435 per year — or roughly $17 per bi-weekly paycheck.
Some workers may be exempt if they purchased qualifying private long-term care insurance before a certain deadline. If you think you might qualify for an exemption, check with the Washington State Employment Security Department.
Washington Paid Family & Medical Leave (PFML) — ~0.66% employee share
Washington’s Paid Family & Medical Leave program is one of the most generous in the country. It provides up to 18 weeks of paid leave for qualifying family and medical events — having a baby, caring for a seriously ill family member, recovering from your own serious health condition, or dealing with certain military-related situations.
The total PFML premium is 0.92% of wages. Employees pay approximately 71.43% of that total, which works out to roughly 0.66% of gross wages. Employers with 50 or more employees pay the remaining 28.57%.
There’s no wage cap on PFML either — it applies to every dollar you earn.
On that same $75,000 salary, PFML takes about $495 per year — or roughly $19 per bi-weekly paycheck.
Together, WA Cares Fund and PFML cost a $75,000 worker about $930 per year — or about $36 per bi-weekly paycheck. That’s the price of having these benefits, and for workers who ever actually need paid leave or long-term care coverage, it’s a meaningful safety net.
Everything That Comes Out of a Washington Paycheck in 2026
Here’s the complete picture of what gets deducted from a Washington paycheck:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | 10%–37% | Progressive brackets; same for all states |
| Social Security | 6.2% | Up to $184,500 wage cap in 2026 |
| Medicare | 1.45% | No income cap |
| WA Cares Fund | 0.58% | Washington only; no wage cap |
| WA Paid Family & Medical Leave | ~0.66% | Employee share; Washington only; no wage cap |
| Washington State Income Tax | $0.00 | Washington has NO state income tax |
| Local Income Tax | $0.00 | No local income taxes anywhere in Washington |
The absence of state income tax is a big deal. But combined with federal income tax and FICA, Washington workers still see roughly 13%–20% of their gross pay disappear before it reaches their bank account depending on their salary level.
Washington Take-Home Pay by Salary in 2026
Here’s what Washington workers actually keep at different income levels after all deductions. Based on a single filer using the standard deduction, no additional pre-tax contributions:
| Annual Salary | Federal Tax | FICA | WA Cares + PFML | Take-Home Pay | You Keep |
|---|---|---|---|---|---|
| $40,000 | $2,918 | $3,060 | $496 | $33,526 | 83.8% |
| $55,000 | $5,318 | $4,208 | $682 | $44,792 | 81.4% |
| $75,000 | $9,868 | $5,738 | $930 | $58,464 | 77.9% |
| $100,000 | $15,868 | $7,650 | $1,240 | $75,242 | 75.2% |
| $120,000 | $21,268 | $9,180 | $1,488 | $88,064 | 73.4% |
| $150,000 | $29,518 | $11,475 | $1,860 | $107,147 | 71.4% |
Even at $150,000 a year, Washington workers keep over 71% of their gross pay. Compare that to a worker in California at the same salary paying up to 13.3% in state income tax on top of everything else — the difference in take-home pay is tens of thousands of dollars per year.
Use the Washington Paycheck Calculator for your exact number based on your actual salary, filing status, and any deductions you have.
How Washington Compares to Neighboring States
This comparison is where Washington’s tax advantage really stands out:
| State | State Income Tax | Key Deductions |
|---|---|---|
| Washington | 0% | WA Cares 0.58% + PFML ~0.66% |
| Oregon | Up to 9.9% | No sales tax |
| California | Up to 13.3% | SDI 1.1% |
| Idaho | Flat 5.8% | None |
| Nevada | 0% | No WA Cares or PFML |
| Wyoming | 0% | No WA Cares or PFML |
Oregon is the most striking comparison. Many people live in Washington and commute into Portland specifically to work in Oregon while maintaining Washington residency — avoiding Oregon’s income tax. Washington workers commuting to Oregon jobs typically owe Oregon income tax on Oregon-earned wages, so the math gets more complicated for cross-border workers.
Nevada and Wyoming also have no income tax, but they don’t offer the WA Cares or PFML benefits that Washington provides in exchange for those deductions.
Does Washington Have a Capital Gains Tax?
This comes up a lot, especially with Seattle’s large tech workforce.
Washington passed a 7% capital gains tax that applies to profits above $250,000 from the sale of stocks, bonds, and certain other assets. This is relatively new — it took effect in 2023 after surviving a legal challenge.
For most hourly and salaried workers, this doesn’t apply. It’s primarily relevant to high-income investors and tech workers who have significant stock options or equity grants. If this applies to your situation, a tax professional can walk you through the specifics.
Wages and salaries are NOT subject to Washington’s capital gains tax — only certain investment gains above the $250,000 threshold.
Smart Moves for Washington Workers
Max out your 401(k) contributions Since Washington has no state income tax, the federal tax savings from 401(k) contributions are even more valuable here — there’s no state tax benefit to stack on top, so the federal savings are your primary tool. In 2026 you can contribute up to $24,500 per year.
Understand your WA Cares exemption eligibility Some Washington workers who purchased qualifying private long-term care insurance before the exemption deadline may be exempt from the WA Cares Fund deduction. If you think you might qualify, check with the Washington State Employment Security Department. Exemptions are granted on a permanent basis.
Use an HSA if you have a high-deductible health plan HSA contributions reduce your federal taxable income. In Washington, since there’s no state income tax to reduce, the federal benefit is your primary win here. The 2026 limits are $4,400 for single coverage and $8,750 for families.
Double-check your W-4 withholding Since Washington has no state income tax withholding, your only withholding concern is federal. Make sure your W-4 reflects your actual situation — especially if you have multiple income sources, a working spouse, or significant investment income.
Frequently Asked Questions About Washington Taxes
Does Washington have state income tax? No. Washington has no state income tax and has never had one. It is one of only 9 states in the US with zero state income tax, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.
What is the WA Cares Fund and do I have to pay it? The WA Cares Fund is Washington’s mandatory long-term care program. Almost all Washington workers are required to contribute 0.58% of their gross wages. Some workers may qualify for a permanent exemption if they had qualifying private long-term care insurance before the deadline — check with the Washington State Employment Security Department if you think this applies to you.
Can I opt out of Washington’s Paid Family & Medical Leave? Generally no — PFML applies to all covered employees working in Washington. However, small employers with fewer than 50 employees are not required to pay the employer share of the premium (employees at those companies still pay the employee share).
I’m moving from California to Washington. How much more will I take home? It depends on your income, but the difference is significant. At $100,000 in California you’d pay roughly $6,000–$9,000 in state income tax. In Washington, that’s $0. You’d still pay WA Cares and PFML totaling about $1,240 — but you’re still thousands of dollars better off than in California.
Does Seattle have a local income tax? No. Seattle attempted to pass a local income tax in 2017 but it was struck down by the courts. Washington state law does not permit cities to levy income taxes, so there is no local income tax anywhere in Washington State.
When do I file a Washington state tax return? You don’t — Washington has no state income tax, so there’s no state income tax return to file. You only need to file a federal return. This also means no state refunds (but also no state tax bills).
The Bottom Line
Washington’s zero state income tax is the real deal — and for workers moving from high-tax states like California, Oregon, or New York, it translates into thousands of extra dollars in take-home pay every single year.
The tradeoff is two Washington-specific deductions — the WA Cares Fund at 0.58% and Paid Family & Medical Leave at about 0.66% — which together cost about 1.24% of your gross wages. In exchange, you get long-term care coverage and one of the most generous paid leave programs in the country.
Most Washington workers keep between 71% and 84% of their gross pay after all deductions — among the highest take-home rates of any state in the country.
Want to see exactly what your Washington paycheck looks like? The free Washington Paycheck Calculator runs every deduction for you in seconds — no account, no signup, updated for 2026.
Sources: Washington State Department of Revenue · WA Employment Security Department · IRS Rev. Proc. 2025-32 · Updated June 2026
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