WASHINGTON PAYCHECK CALCULATOR
$0 state income tax on wages PFML + WA Cares Fund still come out of every paycheckWashington doesn’t tax your paycheck at all, no wage withholding, no state W-4, no bracket table to worry about. It’s one of only nine states that skip income tax on wages entirely. But “no income tax” doesn’t mean “nothing extra comes out.” Washington runs two of its own payroll deductions that most other no-tax states don’t have: a Paid Family and Medical Leave premium and the WA Cares Fund for long-term care, both of which show up on every paycheck regardless of income.
A Washington paycheck runs through federal withholding, Social Security, and Medicare just like anywhere else, then adds the state’s PFML and WA Cares premiums on top, that’s the full list. If you’re weighing a Washington offer against a neighboring state, take a look at the Oregon paycheck calculator, the Idaho paycheck calculator, or the California paycheck calculator, the two very different tax pictures on either side of the Columbia River tell you a lot about how much a state income tax actually costs.
Estimate only, for tax year 2026. Assumes no pre-tax deductions and no long-term care insurance exemption from WA Cares. Actual withholding may differ.
Every Deduction on a Washington Paycheck
- Federal income tax: Based on the 2026 IRS brackets, 10% to 37%, after the $16,100 single / $32,200 joint standard deduction. Same as every other state.
- Washington state income tax: $0. Washington has no personal income tax on wages, one of nine states that don’t tax earned income at all.
- Social Security: 6.2% of gross wages up to $184,500 for 2026. Withholding stops for the rest of the year once you cross that number.
- Medicare: 1.45% of all wages, no cap, plus an extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
- Paid Family and Medical Leave (PFML): A statewide premium totaling 1.13% of wages for 2026, with employees covering roughly 71% of that share, about 0.81% of wages, up to the Social Security wage base.
- WA Cares Fund: 0.58% of gross wages, with no cap, funding Washington’s mandatory long-term care insurance program. Paid entirely by the employee.
Washington’s Capital Gains Tax: The Exception to “No Income Tax”
Say “Washington has no income tax” to a tax lawyer and they’ll immediately add an asterisk. Since 2022, Washington has charged a 7% excise tax on long-term capital gains, the profit from selling stocks, bonds, or a business interest, above a threshold that adjusts for inflation each year. For 2026, that threshold sits at roughly $262,000. Gains above $1 million get taxed at 9.9% instead. The Washington Supreme Court upheld the tax as a valid excise tax under the state constitution in 2023, so it’s here to stay barring a future ballot measure or legislative repeal.
| Gain Amount | Rate Applied |
|---|---|
| Up to ~$262,000 | 0% (exempt) |
| $262,000 to $1,000,000 | 7% |
| Above $1,000,000 | 9.9% |
This tax has essentially zero relevance to a normal paycheck. It touches only a few thousand taxpayers a year statewide, mostly people selling a business, cashing out significant stock, or realizing large investment gains. Real estate sales, qualified retirement account distributions, and a handful of other categories are specifically exempt. It’s worth knowing about mainly because it’s the detail that trips people up when they assume “no income tax” means Washington never touches investment income.
Washington vs. Its Neighbors: $70,000, Single Filer
Here’s how Washington compares to the states people actually cross-shop it against, all at $70,000 in gross salary for a single filer, 2026 rates. This comparison covers state income tax only, Washington’s PFML and WA Cares premiums apply on top regardless of which comparison state you’re looking at.
| State | State Tax Owed | Est. Net Pay* |
|---|---|---|
| Washington | $0 | ~$57,050 |
| Idaho (flat 5.3%) | ~$2,602 | ~$54,448 |
| Oregon | ~$5,600 | ~$51,450 |
*Washington’s net pay figure already factors in the PFML and WA Cares deductions on top of federal tax, Social Security, and Medicare, since those apply regardless of income tax. Idaho and Oregon figures are federal plus state income tax only, before any state-specific payroll programs (Idaho and Oregon don’t have PFML/WA-Cares-style programs, so this is a fair like-for-like comparison). Oregon’s bracket thresholds come from sources that didn’t fully agree with each other on the exact dollar cutoffs for 2026, so treat Oregon’s figure as a close approximation and confirm against the Oregon Department of Revenue before publishing.
The contrast with Oregon is about as stark as state tax comparisons get. Cross the Columbia River from Vancouver, Washington into Portland, Oregon, and a $70,000 earner goes from paying nothing in state income tax to owing roughly $5,600 of it, while picking up zero sales tax to offset that in exchange. It’s the classic example economists use when explaining how “no income tax” and “no sales tax” states end up trading one tax burden for another rather than avoiding taxes altogether.
Washington Tax Burden: The Full Picture
| Tax Type | Washington | National Average |
|---|---|---|
| Income tax on wages | 0% | ~5.0% |
| State sales tax | 6.5% | ~5.1% |
| Combined sales tax (avg.) | 9.51% | ~7.5% |
| Effective property tax rate | 0.75% | ~1.02% |
| Estate tax | Yes, threshold around $3M | Most states: none |
| Overall Tax Competitiveness rank | 45th of 50 | – |
Washington’s tax system is a genuine trade-off, not a free lunch. Zero income tax on wages is a real, substantial saving for anyone earning a normal salary. But the state makes up for it with one of the highest combined sales tax rates in the country, averaging 9.51%, and Seattle’s local rate pushes past 10% in some neighborhoods. Property tax runs a bit below the national average at 0.75% effective, and Washington’s estate tax, with a threshold around $3 million after a mid-2026 update, catches more families than the federal estate tax ever would. The overall picture is why Washington lands at 45th on the Tax Foundation’s competitiveness ranking despite having no income tax at all, sales tax and the newer capital gains tax pull the score down.
Special Case: Retirees and Investment Income
Washington is genuinely appealing for most retirees. There’s no tax on Social Security benefits, pension income, or withdrawals from a 401(k) or IRA, because there’s no state income tax to apply to any of it in the first place. For someone living primarily on retirement income without large annual capital gains, Washington is about as tax-friendly as it gets on the income side.
The exception is retirees who plan to sell significant appreciated assets, a business, a large stock position, or investment real estate outside their primary residence. Anyone realizing more than roughly $262,000 in capital gains in a single year needs to plan around Washington’s 7% excise tax on the amount above that threshold, and think about whether spreading a sale across multiple tax years or using an installment sale could keep more of the gain under the line. It’s a narrow slice of retirees this actually affects, but for the people it does affect, the numbers get large fast.
Federal Tax: A Worked Example
Take a single filer earning $70,000 in 2026. Subtract the federal standard deduction of $16,100, and taxable income comes to $53,900. Here’s how that runs through the brackets:
- 10% on the first $12,400 = $1,240
- 12% on $12,400 to $50,400 ($38,000) = $4,560
- 22% on $50,400 to $53,900 ($3,500) = $770
Total federal tax: $6,570, an effective rate of about 9.4% on the full $70,000. In Washington, that’s essentially the entire income tax story for this earner, no state bracket table gets added on top, just the PFML and WA Cares premiums, which come to roughly $567 and $406 respectively at this income level.
Frequently Asked Questions
Does Washington state have income tax?
No, Washington does not tax wages or salaries. It’s one of nine states with no personal income tax on earned income. Washington does, however, charge a 7% excise tax on long-term capital gains above roughly $262,000 a year (2026), rising to 9.9% above $1 million, so high earners who sell stock or a business aren’t entirely off the hook.
What gets taken out of a Washington paycheck if there’s no state income tax?
Four things: federal income tax, Social Security (6.2% up to $184,500 in 2026), Medicare (1.45%, plus 0.9% above $200,000 for single filers), and two Washington-specific payroll deductions, the Paid Family and Medical Leave premium (employee share of roughly 0.81% of wages) and the WA Cares Fund long-term care premium (0.58% of wages, no cap).
What is the WA Cares Fund?
WA Cares is Washington’s mandatory long-term care insurance program, funded entirely through an employee payroll deduction of 0.58% of gross wages with no wage cap. It pays out a lifetime benefit toward long-term care costs like in-home care or a nursing facility. Employees with qualifying private long-term care insurance obtained before the deadline could apply for an exemption.
Does Washington tax capital gains?
Yes, but only above a high threshold. Washington’s capital gains excise tax applies a 7% rate to long-term gains above approximately $262,000 per individual for 2026 (indexed for inflation), with a 9.9% rate on gains above $1 million. Real estate sales, retirement account distributions, and a handful of other categories are exempt. The Washington Supreme Court upheld the tax as a valid excise tax in 2023.
How does Washington’s sales tax compare to other states?
Washington’s combined state and local sales tax rate averages 9.51%, among the higher rates in the country, since the state relies on sales tax to fund services it can’t collect through an income tax. The state rate itself is 6.5%, with local add-ons pushing city rates like Seattle’s noticeably higher.
Is Washington a tax-friendly state overall?
It’s mixed. Washington ranks 45th out of 50 on the Tax Foundation’s 2026 State Tax Competitiveness Index, dragged down mainly by its high sales tax and the newer capital gains tax. For most wage earners without large investment gains, though, paying zero state income tax on a paycheck is a real and substantial advantage over states with even modest income tax rates.
Washington’s tax system rewards a specific kind of household more than others: a working family drawing a regular paycheck, with most of their wealth in a home and retirement accounts rather than a taxable brokerage account. For that household, skipping state income tax entirely is close to a pure win. The math shifts for anyone planning a large one-time liquidity event, selling a company, exercising a big batch of stock options, or unloading a substantial investment property, where the sales tax savings on daily purchases stop mattering much and the capital gains excise tax becomes the number actually worth modeling ahead of time.
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