Washington State Paycheck Calculator

Does Washington state have income tax?

No — Washington has no personal income tax on wages and salary. However, WA does have: a 7% capital gains tax on long-term gains above $262,000 (single or joint), a Business & Occupation (B&O) tax on business revenue, a 6.5% state sales tax (plus local), and the WA Cares Fund (0.58% payroll deduction for long-term care).

What is the WA Cares Fund?

The WA Cares Fund is a mandatory long-term care insurance program funded by a 0.58% payroll deduction (no wage cap). In return, eligible workers earn up to $36,500 in lifetime long-term care benefits (adjusted for inflation). Self-employed workers can opt in. Some workers with private LTC insurance may have applied for an exemption — exemptions closed January 1, 2023.

What is WA PFML?

Washington Paid Family & Medical Leave allows eligible workers up to 12 weeks of paid medical leave and 12 weeks of paid family leave (18 weeks total in some circumstances). Benefits replace 60–90% of wages. Funded by a 0.74% premium split between employees (~0.53%) and employers (~0.21% for large employers).

How does WA's 7% capital gains tax work?

Washington's capital gains tax (effective 2023) applies to long-term capital gains (stocks, bonds, business interests) above $262,000 per individual or jointly. It does NOT apply to real estate sales, retirement accounts, or farming assets. Rate is a flat 7% on the amount above the threshold. It's paid via the state's excise tax system, not as payroll withholding.