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Why are WA state taxes so high? Sales, property, and more

February 14, 2026Taxes5 min read

By Helium Day Tax

Why are WA state taxes so high? With no tax on wages, Washington relies on sales tax, property tax, local add-ons, and a capital gains levy for many, too.

Why are WA state taxes so high? Sales, property, and more

Why are WA state taxes so high?

Washington feels high taxation because the state simply structures revenue around transactions & ownership — rather than withholding a slice of each paycheck.

Does Washington have a state income tax?

No, there’s no Washington state income tax on wages. The state income tax rate on paychecks is 0%.

Which taxes and charges show up the most?

These amounts appear in routine expenses. They are difficult to ignore.

Type

Where do you see it

Base retail tax of 6.5% plus local add-ons — the Washington state sales tax rate

Receipts for many goods & services

Property tax tied to real estate

Escrow payments & rent or annual bills

B&O tax — a gross-receipts tax on businesses

Higher prices, especially for service-heavy items

When does Washington capital gains tax show up?

It applies once you sell distinct long-term investments. Washington leverages a 7% rate up to $1 million of taxable WA capital gains & 9.9% above that threshold.

Does Washington have an estate tax?

Yes. For deaths in 2026, the exclusion amount is defined as $3,076,000. Any taxable amounts above such a threshold should manage graduated rates reaching up to 35%.

What can you do before you move or file?

Taxpayers can benefit from a preplist like the one presented below to verify their data and prevent surprise situations.

  • Map out 12 months of bank & card statements to spot spending patterns.
  • Verify your lease, closing papers & escrow summary to see how housing costs break down.
  • Collect brokerage forms & trade confirmations before selling assets.

Helium Day Tax & CPAs

If you need a WA-focused projection for your household or establishment, send our team a note today. We will present expert assistance with more than 3 decades of expertise in Washington and beyond.

  • Move checklist — payroll changes & new-state paperwork
  • Business setup — correct classification & filing rhythm
  • Credit review — confirm what refunds you may qualify for