STATE RANKING #15

Quick facts: 

-Washington has no personal income tax.

-Washington is one of few states that has an estate tax.

NONE

State Income Tax

State
Income
Tax

NONE*

Cost of Setting Up A Business

state
business
tax

AVERAGE

Property
Taxes

9.21%

Sales
Tax (average)

State Income Taxes in Washington

The state of Washington is one of only 8 states with no state income tax. Yay!

State Business Taxes in Washington

Similar to Texas, the state of Washington has no business income tax, but does have a Gross Receipts tax*

Washington’s Gross Receipts Tax is called Business & Occupation Tax (B&O). The B&O ranges from between .13% to 3.30% depending on your business classifications.

Sales Taxes in Washington

Like many states, Washington has multiple sales tax rates. One at the state level and another at the local level. The state rate is 6.50% and the average local rate is 2.71% (total average rate for Washington Sales Tax is 9.21%).

Property Taxes in Washington

The average property tax rate for residential property in the state of Washington is 0.92%, which is right in line with the country’s average rate of 1.05%. 

Estate Taxes in Washington

Washington is one of a few states that has an estate tax. The tax rate ranges from 10% – 20% on any estate over $2,193,000.

Unemployment taxes in Washington

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Washington has a wage base of $49,800 for 2020, highest in the country.
  • UI Rates – range from 0.15% to 5.72%
  • Schedules – Washington has a only one schedule

Note: Workers Comp is collected by the State through the Washington Department of Labor & Industries.

Washington Business Entities - LLCs

Washington is an inexpensive state to to set up your LLC. Here are some important facts:

  • Washington’s annual LLC fee is only $60.
  • When you register with the state, you pay a one time fee of $200
  • Secretary of State of Washington website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

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