How Washington taxes work

Ordinary wages have no state income taxThe calculator applies $0 of Washington individual income tax to wage and salary income.
Long-term capital gains use separate rulesWashington's excise tax applies to certain gains after an inflation-adjusted deduction, exemptions, and available credits.
Capital-gains rates are tieredBeginning with tax year 2025, taxable Washington capital gains use 7%, with an additional 2.9% above $1 million.
Paid Leave can be includedThe calculator applies the 2026 employee share to supported W-2 wages up to the per-employee Social Security cap when Included is selected.
WA Cares can be included separatelyThe calculator applies 0.58% to supported W-2 wages with no wage cap unless Exempt is selected.

Common Washington tax questions

Does Washington tax ordinary wages?No general individual income tax is applied to wages by this Washington preset.
Is the capital-gains tax included?No. The other-income field does not identify asset type, holding period, deductions, domicile, exemptions, or credits.
Does a home sale trigger Washington capital-gains tax?Washington DOR lists real estate among the assets exempt from its capital-gains tax.
Are Paid Leave and WA Cares included?Yes by default for supported W-2 wages. Exclude Paid Leave if the employer pays the employee share, and select Exempt only with an approved WA Cares exemption.
Are sales and property taxes included?No. Those taxes depend on purchases and location and are separate from this take-home-pay estimate.
Is this a complete Washington tax calculation?No. It is a wage-based planning estimate and does not prepare a capital-gains return or calculate every state tax.