Washington State Long Term Care Tax
The Washington state long term care tax is a payroll deduction. It basically funds the WA Cares program — a public benefit for eligible workers in Washington. Employees began paying into this fund when the program launched several years ago. Today, the withholding rate is 0.58% of gross wages.
The central question for employees:
- how much money leaves each paycheck
- whether an exemption applies
For employers, the primary focus may be presented as:
- precise payroll setup
- answering staff questions
What is the Washington state long term care tax?
The Washington state long term care tax is an employee-funded payroll contribution. It supports the WA Cares Fund — a public long-term care insurance program. Workers who satisfy the eligibility requirements can apply for benefits in July 2026 in accordance with specific contribution & care-need requirements.
- The withholding rate sits at 0.58%
- The deduction applies to employee wages
- It impacts many full-time & part-time and temporary workers
- Some workers hold exemptions or qualify for one
- WA Cares benefits assist with qualifying long-term care services
Who pays WA Cares tax and who may be exempt?
Most Washington workers pay into the WA Cares fund. All full-time & part-time and temporary workers in the WA contribute — unless they have an approved exemption.
Distinct groups do not contribute automatically as listed below:
- Federal employees working in Washington
- Employees of tribal businesses — unless the tribe opts in
- Self-employed individuals – except when they choose to enroll
- Retired & non-working Washington residents
- Temporary workers holding a non-immigrant visa
Payroll errors may occur at this stage — an onboarding checklist might prevent delays.
What happens if a worker moves in / out of Washington during the year?
Workers & employers should review payroll location rules if someone moves, changes work location or starts remote work across state lines.
The major question is whether the employee is treated as working in Washington for payroll purposes during that period. Therefore, payroll records should be updated promptly and the effective date should be documented in order for withholding changes to happen on the right paycheck — not weeks later.
What be reviewed before each payroll run?
The table below can be used to prevent withholding mistakes and keep WA Cares deductions consistent. Reviewing these items takes only minutes:
Should you rely only on WA Cares or also look at private coverage?
WA Cares has the “support program” function. It is not a total substitute for all long-term care expenses. The earned benefit is up to $36,500 — adjusted for inflation. This amount would be far from covering a major care event in total terms.
Such options can be shown as below:
- WA Cares — mandatory payroll-funded benefit impacting most workers, the Washington state long term care tax covers this base layer
- Private LTC insurance — optional coverage presenting more plan design choices, though pricing might vary
- Tax/CPA planning — assists households budgeting for payroll impacts, evaluating cash flow & reviewing insurance costs
Next actions
- Confirming which employees are subject to withholding
- Verifying exemption documents before altering the payroll setup
- Calculating the deduction using the 0.58% rate
- Budgeting the annual amount to prevent surprises
- Reviewing whether private long-term care coverage still satisfies the financial targets
Why do people get confused about the WA Cares start date?
Confusion naturally occurs because older online articles mention 2022 — even though the actual payroll deductions did not begin until mid-summer of the following year. The optimal way to acknowledge is separating the legislative timeline from the actual payroll withholding date
What should employees check on each pay stub for WA Cares?
Workers should review their pay stubs to verify the WA Cares deduction comes from gross wages & equals the correct percentage.
Retain several past pay stubs for your files. This enables taxpayers to track deduction amounts and present exact numbers to the HR team. If your establishment uses outsourced CFO services, the dedicated team can also clarify the pay stub figures.
How can Helium Day Tax & CPAs help?
Helium Day Tax & CPAs assists clients in managing the Washington state long term care tax from a tax & payroll and financial planning perspective. We work directly with US individual and cross-border taxpayers & establishments requiring prompt answers with precise math.
FAQs
How to calculate WA long-term care tax?
Multiply gross wages by 0.0058 — 0.58%. In other words, a 2,000 USD gross paycheck results in an $11.60 WA Cares deduction
Is WA long-term care mandatory?
Yes, for most Washington employees. The scenario changes in the case that they have an approved exemption or fall into a non-contributing group. Self-employed workers join only if they opt in.
When did the Washington long-term care tax start?
On July 1st, workers started paying WA Cares payroll deductions a few years ago (2023 fiscal year). It is also explained that benefit applications can begin in July 2026 for people who satisfy the rules.
What is the biggest drawback of long-term care insurance?
For many people — the cost — since the risk of premium increases over time. Review rate history & benefit options before selecting a policy.