Washington income tax guide for individuals and businesses
A plain-English overview of Washington individual and business taxes for 2026: rates, forms, deadlines, sales tax, payroll and multi-state rules, with CPA help when you need it.
Washington at a glance
| Individual income tax | No broad-based wage income tax |
|---|---|
| Main resident return | None for wages |
| Business taxes | No corporate or personal income tax. The Business and Occupation (B&O) tax applies to gross receipts, with different rates by activity. |
| Sales tax | About 6.5% state rate |
| Local taxes | Cities and counties add to the 6.5% state rate; combined rates are high around Seattle. |
| Individual return due | No state wage income tax return (federal return due April 15) |
| Tax agency | Washington Department of Revenue |
| Wage reciprocity | No wage reciprocity agreements are commonly listed for this state |
Individuals
Washington does not have a broad-based income tax on wages. Residents generally do not file a Washington personal income tax return for ordinary income.
That does not always mean you owe nothing: if you earn income in another state, or you move, that other state may tax it. Your federal return is still required.
Good to know: Washington has no tax on wages, but charges a capital gains excise tax on the sale of certain long-term assets above a threshold. Payroll programs such as Paid Family and Medical Leave and WA Cares also apply.
Businesses
Entity-level taxes: No corporate or personal income tax. The Business and Occupation (B&O) tax applies to gross receipts, with different rates by activity.
Pass-through businesses. S corporations, partnerships and most LLCs pass income to their owners, who report it on personal returns. Many states, including a large number of those that tax income, offer an elective pass-through entity tax (PTET) that can help work around the federal limit on deducting state taxes. Ask us whether it fits Washington and your situation.
Sales tax. About 6.5% state rate. Cities and counties add to the 6.5% state rate; combined rates are high around Seattle. After the Wayfair decision, out-of-state sellers can owe sales tax once their sales into Washington pass the state's threshold, even with no office there.
Payroll. Employers must register for state income tax withholding (where the state has an income tax) and for state unemployment insurance before the first payroll, and report new hires. Workers' compensation insurance is also required in most cases.
Annual filings. Most states also require corporations and LLCs to file a yearly report or pay a fee to the Secretary of State.
Working in more than one state
Washington is not commonly listed as having wage reciprocity with other states, so people who live in one state and work in another usually file nonresident returns and claim a credit at home.
Working or living in more than one state, or moving during the year? See our multi-state tax guide.
Compliance calendar snapshot
| When | What |
|---|---|
| January 15, April 15, June 15, September 15 | Federal estimated tax payments. Most states with an income tax follow similar dates. |
| April 15 | Federal return due date. No state wage income tax return. |
| Monthly or quarterly, usually the 20th of the next month | State sales tax returns and payroll withholding deposits, depending on volume |
| Quarterly (end of month after quarter) | State unemployment insurance and withholding reconciliation returns |
| Yearly, on the entity's anniversary or by a fixed date | Secretary of State annual report or franchise fee |
Common questions
What is the Washington income tax rate for 2026?
There is no broad-based wage income tax in Washington. Rates, brackets and credits change, so confirm with the Washington Department of Revenue.
Which form do I file for Washington income tax?
Washington has no wage income tax return for individuals. You still file your federal return, and any other state where you earned income may require its own return.
Do I need to file a Washington return if I live in another state?
If you earned income from Washington sources (wages for work performed here, rental property, or a business or partnership interest), you may need to file in Washington even if you live elsewhere. Because Washington has no wage income tax, this mainly matters for special taxes such as business taxes. Your home state usually gives a credit for tax paid to another state.
Does Washington have reciprocity with other states?
Washington is not commonly listed as having wage reciprocity. Reciprocity applies only to wages and there are exceptions, so confirm before you stop withholding.
What business taxes apply in Washington?
No corporate or personal income tax. The Business and Occupation (B&O) tax applies to gross receipts, with different rates by activity. Sales tax, payroll withholding and unemployment insurance may also apply.
General information only, for tax year 2026. Rates, forms and rules change and have many exceptions. Confirm with the state agency or contact us before you act. Rates shown are approximate top or flat rates.
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