Tax policy in Washington

in Washington

Fiscal Budgets Washington state budget and finances Tax policy in Washington Finance Financial regulation in Washington Pensions Public pensions in Washington Pension health in Washington Civil liberties Affirmative action in Washington Campaign finance requirements in Washington Campaign finance requirements for Washington ballot measures Nonprofit regulation in Washington Education Charter schools in Washington Higher education in Washington Public education in Washington School choice in Washington Elections Ballot access Ballot access requirements for political candidates in Washington Ballot access requirements for political parties in Washington Political parties in Washington Ballot access requirements for presidential candidates in Washington Redistricting in Washington Voting in Washington Energy and Environment Energy policy in Washington Fracking in Washington Oil and gas extraction on federal land in Washington Endangered species in Washington Environmental policy in Washington Healthcare Healthcare policy in Washington Medicaid spending in Washington Effect of the Affordable Care Act in Washington Immigration Immigration in Washington

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Tax policy in Washington

Tax rates in 2017

Personal income tax: None

State sales tax: 6.50%

Corporate income tax: None

Tax revenues in 2016

Total tax collections: $22.28 billion

Tax collections per capita: $3,057

Total state expenditures • State debt • Washington state budget and finances

Washington generates the bulk of its tax revenue by levying a general state sales tax and select sales taxes (otherwise known as excise taxes). The state derives its constitutional authority to tax from Article VII of the state constitution.^[1][2]

Tax policy can vary from state to state. States levy taxes to help fund the variety of services provided by state governments. Tax collections comprise approximately 40 percent of the states' total revenues. The rest comes from non-tax sources, such as intergovernmental aid (e.g., federal funds), lottery revenues and fees. The primary types of taxes levied by state governments include personal income tax, general sales tax, excise (or special sales) taxes and corporate income tax.^[3]

Tax rates

Personal income tax

See also: Personal income tax

Washington did not utilize a personal income tax in 2017.^[4]

The table below summarizes personal income tax rates for Washington and neighboring states in 2017.^[4]

Personal exemptions

States that collect a personal income tax allow individuals to claim personal exemptions on income taxes each year. The personal exemption indicates that only a person's income above a certain level is subject to taxation. ^[5]

Exemptions work by reducing the amount of an individual's taxable income. Both state and federal taxes allow exemptions. The state exemptions for Washington and its neighboring states as reported by the Tax Policy Center are reported in the chart below.^[6]

Capital gains tax

See also: Capital gains tax

A capital gains tax is a tax levied on the profit gleaned from the sale of a capital asset. Examples of capital assets include stocks, businesses, land parcels, homes, personal items and more. Capital gains are taxable at both the federal and state levels. While the federal government taxes capital gains at a lower rate than regular personal income, states usually tax capital gains at the same rates as regular income. ^[7][8][9]

The table below summarizes uppermost capital gains tax rates for Washington and neighboring states in 2015.

Sales tax

See also: Sales tax

Almost all states employ a statewide sales tax, which ranges from 2.9 percent in Colorado to 7.25 percent in California. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax.

Washington's state sales tax was 6.50% percent in 2017. The average local tax was about 2.42% percent, meaning that the average combined sales tax was about 8.92% percent. The table below displays the state tax rates, average local tax rates, and average combined tax rates for Washington and its neighboring states.^[10]

The table below summarizes sales tax rates for Washington and neighboring states in 2017 as well as the state's policy with respect to types of items commonly exempted from sales tax (i.e., food, prescription drugs and nonprescription drugs).^[11]

Excise taxes

See also: Excise taxes

Excise taxes, also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals. In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Washington and neighboring states.^{[12][13][14][15]}

Corporate income tax

See also: Corporate income tax

Washingtondoes not levy a corporate income tax. The table below compares the corporate income tax rates of some of its neighboring states.^[16][17]

Property tax

See also: Property tax

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and ... the share of the assessed value that is subject to tax." To learn more about property taxes, including tabulation methods, see this page. Property tax rates can vary substantially from locality to locality within a state.^{[18][19][20] [18][19]}

The table below provides the mean amount of property taxes paid in 2012, as well as property tax as a mean percentage of home value for 2014, in Washington and neighboring states.^[18]

The table below lists per capita state and local property tax collections for Washington and neighboring states for fiscal year 2013.^[21]

Estate and inheritance taxes

See also: Estate and inheritance taxes

Estate and inheritance taxes are levied on the property of deceased individuals (decedents). Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs. By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets.^[22][23][24]

Washington is one of 14 states that levies an estate tax. In addition, residents are liable for the federal estate tax. The table below summarizes the estate tax rates for Washington and neighboring states in 2016.^[24]

Tax revenues

See also: Washington state budget and finances

The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.^[25]

The table below lists 2016 tax collections by source as percentages of total collections. About 79.2 percent of Washington's total state tax collections came from sales taxes and gross receipts.^[25]

Tax ballot measures

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

See also: Taxes on the ballot and List of Washington ballot measures

Ballotpedia has tracked the following ballot measures relating to taxes in Washington.

1. Washington Initiative 559, Adjust Property Value for Taxes Measure (1991)
2. Washington Referendum 42, 911 Emergency Phone Service Tax Measure (1991)
3. Washington Initiative 601, Tax and Expenditure Limits Measure (1993)
4. Washington Initiative 602, State Revenue Collection and Expenditure Limits Measure (1993)
5. Washington HJR 4208, Four-Year Tax Levies Amendment (1997)
6. Washington Referendum 49, Vehicle Excise Taxes and Transportation Bonds Measure (1998)
7. Washington Initiative 920, Estate Tax Repeal Measure (2006)
8. Washington HJR 4223, Property Tax Exemption Increase Amendment (2006)
9. Washington Referendum 30, Inheritance Tax on Insurance Measure (1958)
10. Washington Referendum 47, Property Tax Limitation Measure (1997)
11. Washington Initiative 776, License Tab Fees Measure (2002)
12. Washington HJR 4220, Fire Protection Property Tax Levy Amendment (2002)
13. Washington Referendum 43, Taxes on Cigarettes, Liquor, and Carbonated Beverages for Prevention Programs Measure (1994)
14. Washington Initiative 102, Child and Family Services Tax Measure (1989)
15. Washington Personal Property Tax Exemption of $300, Amendment to Article VII Sec. 2 (1900)
16. Washington Initiative 97 and Alternative Measure 97B, Hazardous Waste Tax and Clean-Up Program Measure (1988)
17. Washington Initiative 90, Sales Tax Increase for Conservation Measure (1986)
18. Washington Initiative 62, State Tax Revenues Limitations Measure (1979)
19. Washington Initiative 44, Statutory Tax Limitation Measure (1972)
20. Washington HJR 9, Taxation of Federal Property Amendment (1946)
21. Washington HJR 7, Retirees Property Tax Exemption Amendment (1966)
22. Washington Initiative 435, Replace Sales Tax with Corporate Franchise Taxes Measure (1982)
23. Washington Initiative 402, Abolition of Inheritance and Gift Taxes Measure (1981)
24. Washington Initiative 464, Trade-In Sales Tax Exclusion Measure (1984)
25. Washington Initiative 345, Food Products Sales Tax Exemption Measure (1977)
26. Washington Initiative 348, Motor Vehicle Tax Laws Repeal Measure (1977)
27. Washington Initiative 314, Corporate Excise Tax to Reduce School Levies Measure (1975)
28. Washington Initiative 251, Prohibit New Taxes and Existing Tax Increases Measure (1970)
29. Washington Initiative 226, Tax Sharing Measure (1966)
30. Washington Referendum 5, Tax Levy Limits Measure (1940)
31. Washington Initiative 129, 40-Mill Property Tax Limit Measure (1938)
32. Washington Initiative 114, Property Tax Levy Limits Measure (1936)
33. Washington Initiative 94, Tax Levy Limits on Property Measure (1934)
34. Washington Initiative 64, Tax Levy Limit on Property Measure (1932)
35. Washington Initiative 69, Graduated Income Tax for School Funding Measure (1932)
36. Washington Initiative 50, Tax Levy Limits on Property Measure (1924)
37. Washington HJR 22, Tax Increment Financing Districts Amendment (1973)
38. Washington HJR 37, Graduated Income Tax Amendment (1973)
39. Washington HJR 40, Excess Levy Validation Formula Amendment (1973)
40. Washington SJR 137, Two-Year Excess School Taxes Amendment (1976)
41. Washington HJR 23, Tax Increment Financing Districts Amendment (1985)
42. Washington HJR 22, Voter Approval of Excess School Tax Levies Amendment (1985)
43. Washington HJR 4220, Property Tax Levy for School Construction Amendment (1987)
44. Washington Initiative 747, Property Tax Limitation Measure (2001)
45. Washington Initiative 773, Increase Tobacco Tax for Health Programs Measure (2001)
46. Washington Referendum 51, Transportation Improvements Measure (2002)
47. Washington Initiative 745, Transportation Funds for Road Infrastructure Measure (2000)
48. Washington Lower Property Taxes, Initiative 1033 (2009)
49. Washington Initiative 985, Traffic Congestion Measure (2008)
50. Washington Initiative 912, Motor Vehicle Tax Repeal Measure (2005)
51. Washington Initiative 900, Mandatory Performance Audits Measure (2005)
52. Washington HJR 4231, Excess Property Tax Approvals Amendment (1990)
53. Washington HJR 4222, Personal Property Tax Exemption Amendment (1988)
54. Washington HJR 55, Excess Tax Levies for School Districts Amendment (1986)
55. Washington SJR 1, One Percent Property Tax Limit Amendment (1972)
56. Washington HJR 47, Formula Governing Excess Property Tax Levies Amendment (1972)
57. Washington HJR 42, State Property and Income Taxes Amendment (1970)
58. Washington Referendum 6, Tax Levy Limits on Property Measure (1942)
59. Washington HJR 1, Forty Mills Tax Levy Limit on Property Amendment (1944)
60. Washington HJR 4, Vehicle Taxes for Highways Amendment (1944)
61. Washington Amendment to Article VII Secs. 1-4, Classification of Property for Taxes Measure (1930)
62. Washington Initiative 884, Sales Tax Increase for Education Trust Fund Measure (2004)
63. Washington Repeal Tax Law Amendments, Initiative 1107 (2010)
64. Washington Income Tax, Initiative 1098 (2010)
65. Washington Transportation, Initiative 1125 (2011)
66. Washington Long-Term Care, Initiative 1163 (2011)
67. Washington SJR 8212, Tax Assessments of Low-Income Housing Amendment (1990)
68. Washington SJR 5, Graduated Net Income Tax Amendment (1938)
69. Washington SJR 7, Uniform Taxation Amendment (1936)
70. Washington HJR 12, Uniform Taxation Amendment (1934)
71. Washington HJR 14, State Authority on Local Taxes Amendment (1934)
72. Washington Amendment to Article VII Secs. 1-4, Classification of Property for Taxes Measure (1928)
73. Washington Property Tax, Amendment to Article VII (1908)
74. Washington Initiative 960, Supermajority Approval for Tax Increases Measure (2007)
75. Washington Supermajority Vote Required in State Legislature to Raise Taxes, Initiative 1053 (2010)
76. Washington Initiative 1185, Tax Increase Approval Requirement Measure (2012)
77. Washington Leasehold Excise Tax Credit Elimination Question, Advisory Vote 3 (2013)
78. Washington Aircraft Excise Tax Question, Advisory Vote 4 (2013)
79. Washington Insurance Premium Tax Question, Advisory Vote 5 (2013)
80. Washington Retail Sales Tax Exemption Elimination Question, Advisory Vote 6 (2013)
81. Washington Estate Tax Extension Question, Advisory Vote 7 (2013)
82. Washington Initiative 722, Tax Limitation Measure (2000)
83. Washington SJR 143, Tax Increment Financing Districts Amendment (1982)
84. Washington HJR 1, Periodic Review of Tax Exemptions Amendment (1972)
85. Washington HJR 1, Use-Based Valuation Tax for Agricultural and Recreational Lands Amendment (1968)
86. Washington Initiative 215, Marine Recreation Land Act Measure (1964)
87. Washington Initiative 695, Voter Approval for Tax Increases Measure (1999)
88. Washington Referendum 53, Unemployment Insurance Measure (2002)
89. Washington HJR 4204, Simple Majority for Excess School Tax Levies Amendment (2007)
90. Washington Substitute HJR 4, Tax Levy Periods for Schools Amendment (1958)
91. Washington Initiative 158, Revenues for Elderly and Disabled Measure (1944)
92. Washington HJR 4, Income Tax Revisions Amendment (1942)
93. Washington Amendment to Article XXVIII, Taxation of Reforested Lands Amendment (1926)
94. Washington Initiative 46, School Fund Allocation and Distribution Measure (1922)
95. Washington Uniform Property Tax, Amendment to Article VII Sec. 2 (1898)
96. Washington Elimination of Agricultural Tax Preferences for Marijuana, Advisory Vote No. 8 (2014)
97. Washington Leasehold Excise Tax on Tribal Property, Advisory Vote No. 9 (2014)
98. Washington Sales Tax Decrease or Two-Thirds Vote for Tax Increase, Initiative 1366 (2015)
99. Washington Oil Spill Prevention Taxes Advisory Vote No. 10 (2015)
100. Washington Gas Tax Increase Advisory Vote No. 12 (2015)
101. Washington Elimination of Tax Preferences for Manufacturing Advisory Vote No. 13 (2015)
102. Washington State-Provided Campaign Financing Funded by a Non-Resident Sales Tax, Initiative 1464 (2016)
103. Washington Modifying Tax Exemption Criteria for Alternative Fuel Vehicles, Advisory Vote 15 (2016)
104. Washington Taxation of Stand-Alone Dental Plans, Advisory Vote 14 (2016)
105. Washington Advisory Vote 18, State Property Tax for Schools Bill (2017)
106. Washington Advisory Vote 17, Sales and Use Tax and Business and Occupation Tax Bill (2017)
107. Washington Advisory Vote 16, Commercial Fishing Licenses, Fees, and Taxes Bill (2017)
108. Washington Advisory Vote 19, Non-Binding Question on Oil Spill Tax Repeal (2018)
109. Washington Advisory Vote 28, Nonbinding Question on Limiting Sales Tax Exemptions for Nonresidents (2019)
110. Washington Advisory Vote 23, Nonbinding Question on E-Cigarette and Vapor Product Tax (2019)
111. Washington Advisory Vote 24, Nonbinding Question on Business Activities Tax to Fund Higher Education Programs (2019)
112. Washington Advisory Vote 25, Nonbinding Question Concerning a Tax on Certain Financial Institutions (2019)
113. Washington Advisory Vote 20, Nonbinding Question on Tax to Fund Long-Term Healthcare Services (2019)
114. Washington Advisory Vote 27, Nonbinding Question on Petroleum Product Tax (2019)
115. Washington Advisory Vote 26, Nonbinding Question on Online Retail Sales Tax (2019)
116. Washington Advisory Vote 31, Nonbinding Question on an International Investment Management Services Tax Increase (2019)
117. Washington Advisory Vote 22, Nonbinding Question on Paint Tax to Fund Paint Waste Management Programs (2019)
118. Washington Advisory Vote 29, Nonbinding Question Concerning an Excise Tax on Real Property (2019)
119. Washington Advisory Vote 32, Nonbinding Question on Carryout Bag Tax (2020)
120. Washington Advisory Vote 33, Nonbinding Question on Heavy Equipment Rental Tax (2020)
121. Washington Advisory Vote 35, Nonbinding Question on Business and Occupation Tax Rate Increase on Commercial Airplane Manufacturers (2020)
122. Washington Initiative 976, Limits on Motor Vehicle Taxes and Fees Measure (2019)
123. Washington Advisory Vote 36, Nonbinding Question on Telephone Tax to Fund Behavioral Health Crisis Response and Suicide Prevention (2021)
124. Washington Referendum 48, Public Stadium Authority and Seattle Seahawks Stadium Funding Measure (June 1997)
125. Washington Advisory Vote 39, Aircraft Fuel Tax Increase Nonbinding Question (2022)
126. Washington Advisory Vote 40, Transportation Network Companies Tax Nonbinding Question (2022)
127. Washington Carbon Emission Tax and Sales Tax Reduction, Initiative 732 (2016)
128. Washington Initiative 892, Electronic Scratch Machines Measure (2004)
129. Washington Substitute HJR 1, Forty Mill Tax Levy Period Increase Amendment (1962)
130. Washington Substitute SJR 1, School District Forty Mill Tax Levy Period Increase Amendment (1962)
131. Washington SJR 23, Proposition Submission for Tax Levies over Forty Mills Amendment (1968)
132. Washington Advisory Vote 1, Removal of Business Tax Deduction Measure (2012)
133. Washington Advisory Vote 2, Petroleum Possession Tax Expiration Measure (2012)
134. Washington Initiative 2109, Repeal Capital Gains Tax Initiative (2024)
135. Washington Initiative 2117, Prohibit Carbon Tax Credit Trading and Repeal Carbon Cap-and-Invest Program Measure (2024)
136. Washington Expiration on Tax Increases Initiative (2025)
137. Washington Property Tax Levy Initiative (2025)

Recent news

The link below is to the most recent stories in a Google news search for the terms Washington taxes. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

• Washington
• Washington state budget and finances
• Personal income tax
• Sales tax
• Corporate income tax
• Property tax

External links

• Tax Policy Center
• Federation of Tax Administrators
• Tax Foundation

Footnotes

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