taxes
Washington
Washington is one of only seven states that does not tax individual wage income. The state does assess a corporate tax called the Business and Occupation Tax. More on Washington taxes can be found in the tabbed pages below. | | Income | | Sales | | Property | | Estate | | Other |
| | Personal income tax |  | The state of Washington is one of only seven states that does not levy a personal income tax. | | | Neither does the state collect a corporate income tax. However, Washington businesses are responsible for various other state levies. |
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| Sales tax | | Washington's state sales tax is 6.5 percent. It applies to some services as well. | | Effective July 1, 2008, Washington is changing the way it collects sales tax. Retailers on and after that date will need to collect local sales tax based on the destination of the shipment or delivery. Read more on destination-based sales tax on the Department of Revenue's Web site. | | Since Jan. 1, 2004, purchases of certain foods and food ingredients have been exempt from sales tax. However, prepared foods, dietary supplements and soft drinks remain taxable. And when doughnuts are sold with eating utensils, the food product is taxable. Eating utensils include plates, forks, napkins, etc., but do not include containers or packaging used to transport the item. | | The combined state and local retail sales tax rates increase the taxes paid by consumers, depending on the variable local sales tax rates. Look up your specific area's rate at the Department of Revenue Web site. The purchaser pays the combined state and local retail sales tax to the retailer, who forwards it to the Department of Revenue. |
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| Personal and real property taxes | | Property tax was the first tax levied in the state of Washington and its collection accounts for about 30 percent of Washington's total state and local revenue. They continue to be the most important revenue source for public schools, fire protection, library, park and recreation and other special purpose districts. | | State law requires assessors to appraise property at 100 percent of its true and fair market value in money, according to the highest and best use of the property. All real and personal property is subject to tax unless specifically exempted by law. | | Details on the property tax system can be found in the homeowner's guide. | | Real property tax deferrals and exemptions are allowed for senior citizens and disabled taxpayers. | | Personal property is also taxed, although most personal property owned by individuals is exempt. Personal property tax applies to personal property used when conducting business or to other personal property not exempt by law. | | All property taxes are paid to the county treasurer's office where the property is located. Contact information for Washington's county treasurers can be found on the Department of Revenue Web site. | | Property tax appeals can be filed in writing with the County Board of Equalization in the county where the property is located. The petition must be filed by July 1 of the assessment year or within 30 days of the date the change of value notice was mailed, whichever is later. Some counties have extended the filing deadline to 60 days. Check with the Board of Equalization in the county where the property is located. |
| Inheritance and estate taxes | | Washington does not collect inheritance taxes. | | | Washington's estate tax is decoupled from the federal estate tax laws and therefore still imposes its own estate tax. | | | Questions may be directed to the Estate Tax Section at (360) 753-5547 or (360) 753-7518. |
| Other Washington tax facts | | A state litter tax, covering 13 categories of products, is imposed on manufacturers, wholesalers and retailers. | | The Washington Department of Revenue maintains an online listing of debtors having large unresolved tax liabilities. Debtors are given an opportunity to settle their account prior to listing. | | Washington does not impose a tax on intangible assets such as bank accounts, stocks or bonds. | | Neither does the state assess any tax on retirement income earned and received from another state. |
| For more information, contact the Washington State Department of Revenue through its Web site, or use one of the following telephone numbers:
-- For a prerecorded information system, call Tax Express at:
(800) 334-8969.
-- To access most requested forms/publications via fax, use Fast Fax at:
(800) 647-7706.
-- For taxpayer assistance, call Telephone Information Center at:
(800) 647-7706. | | To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions. |
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-- Updated: Feb. 4, 2008