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Washington 2021 State Income Tax Brackets

No state income tax โ€” see key tax facts below

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Washington Has No State Income Tax

Residents of Washington pay no state-level income tax, keeping more of every paycheck. No income tax on wages. 7% capital gains tax on gains over $270,000 (upheld 2023). Estate tax on estates over $2.193M.

2021 Federal vs. Washington State Tax Rates

Federal top marginal rate

37%

Washington top marginal rate

0%

When combined with federal taxes, Washington residents in the highest bracket face a combined marginal rate of approximately 37% on their last dollar of income.

Key Tax Facts: Washington in 2021

Sales Tax Rate

6.50%

State rate (local taxes may add more)

Property Tax Rate

0.98%

Effective average rate on home value

Income Tax

No state tax

One of 9 no-tax states

Retirement Income

Exempt / Favorable

Most retirement income not taxed

Social Security

Not taxed

Social Security exempt from state tax

Estate / Inheritance Tax

Yes

State-level estate or inheritance tax applies

Other Tax Years

Federal Brackets by Filing Status (2021)

Other States โ€” 2021 Tax Brackets

Frequently Asked Questions โ€” Washington State Taxes

Does Washington have a state income tax?

No. Washington does not impose a state individual income tax, meaning residents pay no additional state-level income tax on wages or salaries. No income tax on wages. 7% capital gains tax on gains over $270,000 (upheld 2023). Estate tax on estates over $2.193M.

How do Washington tax brackets work?

Since Washington has no income tax, this question doesn't apply. However, residents still pay federal income tax and FICA taxes (Social Security and Medicare). Use the Paycheck Calculator to estimate total take-home pay.

What is the difference between marginal and effective tax rate in Washington?

Your marginal tax rate is the rate on your highest dollar of income. Your effective tax rate is your total state tax bill divided by your gross income โ€” always lower than your marginal rate. For example, a worker at the top bracket in Washington may have a marginal rate of N/A but an effective rate several points lower due to income in lower brackets.

When were Washington's tax brackets last updated?

The brackets shown here reflect 2021 rates as enacted by Washingtonlegislation and published by the state Department of Revenue. CalcFi updates state tax data annually following each state's legislative session. Data sourced from official state tax agency publications and the Tax Foundation. Last updated: March 2025.

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