How taxes work in Washington
Sales tax. Washington charges a 6.5% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 9.38% is the number that matters at the till. Groceries are generally exempt from the state sales tax; local rules can differ.
Property tax. At an average effective rate of about 0.87%, a $350,000 home in Washington carries roughly $3,045 a year in property tax before exemptions. That is near the middle of US states. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. No income tax on wages, but a 7% capital-gains excise tax applies above a high threshold, and businesses pay B&O tax on gross receipts. Remember that 'no income tax' states fund services through other taxes — compare the full picture (sales, property) before assuming a move saves money.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Washington compares with similar states
The states closest to Washington on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Washington (this page) | 9.38% | 0.87% | None |
| Louisiana | 9.56% | 0.55% | Flat |
| Tennessee | 9.55% | 0.67% | None |
| Arkansas | 9.44% | 0.62% | Progressive |
| Alabama | 9.29% | 0.42% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Washington
Washington does not tax wages, and its property tax is not carrying the load either: the average effective rate of 0.87% ranks 27 of 51, below the all-state average of 1.04%. On a $400,000 home that is about $3,480 a year. Read with the sales tax above, Washington is a genuinely low-tax state on the three taxes most households pay.
Read together: Washington combines an average combined sales tax of 9.38% (rank 4 of 51), an average effective property tax of 0.87% (rank 27 of 51) and no state tax on wages. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Washington
Seattle, Spokane, Tacoma, Vancouver, Bellevue. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Washington sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Washington residents
- Washington Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Washington local rate.
- Mortgage Calculator — include Washington property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Washington freelancers.