Washington is one of nine states with no income tax. Instead, the state constitution requires a balanced budget funded through:
This structure makes Washington's tax system one of the most regressive in the nation, with lower-income households paying a higher percentage of their income in taxes than wealthy households. The system is also highly fragmented — your property tax bill alone may fund 10+ different government entities.
Levies on real estate value fund schools, roads, fire districts, libraries, parks, and more. Washington's property tax system includes state and local levies, with voter-approved bonds and levies adding to base rates.
Combined state and local sales tax rates range from 7% to 10.6% depending on location. Use tax applies to items purchased out-of-state or online when sales tax wasn't collected.
Cities levy taxes on electricity, natural gas, telephone service, cable TV, water, sewer, and garbage collection. Rates vary by jurisdiction and utility type.
Washington collects excise taxes on real estate sales, motor vehicle sales, fuel, cannabis, spirits, tobacco, and more. These taxes are often earmarked for specific purposes.
State and local governments tax landline, wireless, and VoIP telephone services. Federal USF charges also appear on phone bills.
Washington's Business and Occupation tax is calculated on gross receipts rather than net income, with rates varying by business classification.
Real Record™ tracks what governments say about taxes, what they promise the money will fund, and what they actually deliver. Our coverage includes: