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Washington Tax

Washington State Tax

Corporate Income Tax Forms
Seller : Form Application for Refund or Credit
Buyer : Form Buyers Declaration for Refund of Retail Sales Tax

Sales Tax Forms
Exemption Form
Form Local Sales and Use Tax Addendum

Form Application for Refund of Use Tax
Form Consumer Use Tax Return

The Washington state tax burden ranks 35th among the 50 states. Washingtonians, on average 8.9% of their total income on Washington state taxes. This is slightly less than 1% below the national average of 9.7% Washington residents pay about $4,334 in Washington state taxes annually. Washington is mostly a rural state with a diversified economy with healthy agricultural, industrial, and high-tech sectors. Wine is Washington state's greatest export in addition to being home to technology giants like Microsoft.

Sales Taxes

The Washington state tax on general consumption of goods and services stands at a rate of 6.5%. 6.5% is the average sales tax rate in Washington. Different counties and cities have different needs; thus, sales taxes from county to county vary. Washington state collects the bulk of the sales tax. However, counties and cities provide for the varied sales tax rates. In Seattle, the sales tax is 8.8% Sales tax in Seattle accounts for a fifth of its municipal tax revenue. King County, where Seattle is located, gets a share of Seattle's sales tax and so does the State of Washington.

Local sales taxes in smaller Seattle cities like Yakima are about 8%. Washington state taxes on both inconspicuous and conspicuous consumption in rural communities are lower. Local governments use less than half of their total revenue to provide basic government services at the county and municipal level of government. Washington State sales taxes are applicable to recreation services, sales of extended warranties, construction/installation services, and most other service oriented industries.

Food, for the most part, is not subject to tax. As of 2010, Washington has made the sale of bottled water, candy, and gum subject to Washington state taxes. Cigarette taxes in Washington are at $2.02 per pack of twenty. Washington Gasoline taxes taxes are higher than the average, at 37.5 cents per gallon. Washington's gas taxes are the third highest in the United States.

Property Taxes

Washington state taxes on property ownership are collected at both the local and state level. Real estate properties are appraised according to market value. Real estate appraisers are employed by the county government. Washington's local governments collect the bulk of property taxes. Most of the local governments' services are funded by revenue from the property tax.

A combination of sales taxes and property taxes are levied to fund schools, libraries, fire departments, and the municipal and county police departments. Property taxpayers spend an average of $256 annually in property taxes. Metropolitan areas are taxed higher than rural areas.

Seniors and Disabled individuals with disposable incomes less than $35,000 may qualify for property tax exemptions. Homeowners, who are not disabled or over 65, must have a combined disposable income of $57,000 or less to qualify for property tax deferral.

Income Taxes

Washington state does not impose an income tax on individuals and corporations. Washington state taxes on businesses include a gross receipts tax in which a percentage of the company's gross receipts must be paid to the state government.

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