How much washington state tax

Prescription medicine and newspapers are also exempt. At the county level, effective rates in Washington range from 0. But because home values here are high, that's a statewide effective property tax rate of only 0. There is also a statewide tax on real estate sales in Washington.

This tax, officially called the real estate excise tax REET , is equal to a specific percentage of the price of the home being sold, and it is typically paid by the seller.

Cities also have the option to levy an additional 0. As of Jan. Below is a breakdown of what Washington residents will pay in these taxes when they sell their home. The table below shows the marginal estate tax rates for qualifying estates. These rates apply to the Washington taxable estate amount, which is likely less than the actual gross estate.

There are two taxes on spirits in Washington. The first is a sales tax of Those taxes combined give Washington one of the highest liquor taxes in the country. As of , recreational marijuana is legal in the state of Washington.

Are you curious how your tax burden stacks up against others in your state? Scroll over any county in the state to learn about taxes in that specific area. To find the places with the lowest tax burdens, SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes. We multiplied the average sales tax rate for a county by the household income after taxes. For property taxes, we compared the median property taxes paid in each county. For fuel taxes, we first distributed statewide vehicle miles traveled to the county level using the number of vehicles in each county.

We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Additionally, many states allow the levying of local sales taxes, which are then added to the state's tax. Washington's state sales tax was 6. The average local tax was about 2.

The table below displays the state tax rates, average local tax rates, and average combined tax rates for Washington and its neighboring states.

The table below summarizes sales tax rates for Washington and neighboring states in as well as the state's policy with respect to types of items commonly exempted from sales tax i. Excise taxes , also known as selective sales or differential commodity taxes, are levied for the sales of specific goods or services. Excise taxes are considered indirect taxes because they are not charged directly to individuals.

In most cases, the excise tax is paid by the producer or seller of an item. The cost of the tax is then included in the sale price of the item and passed on to the consumer. The tables below provide excise tax rates for motor fuel, alcohol and cigarettes in Washington and neighboring states. Washingtondoes not levy a corporate income tax. The table below compares the corporate income tax rates of some of its neighboring states.

Most often, property tax applies to real estate, although some states levy property taxes on other types of personal property, such as automobiles. Generally speaking, an individual's property tax liability is determined by the tax rate and the tax base, which is "determined by both the assessed value of the property and Property tax rates can vary substantially from locality to locality within a state. The table below provides the mean amount of property taxes paid in , as well as property tax as a mean percentage of home value for , in Washington and neighboring states.

The table below lists per capita state and local property tax collections for Washington and neighboring states for fiscal year Estate and inheritance taxes are levied on the property of deceased individuals decedents. Generally speaking, an estate tax is applied to the value of a decedent's property and is paid from the estate before distribution to any heirs.

By contrast, an inheritance tax is paid by the heir or heirs of a decedent's assets. Washington is one of 14 states that levies an estate tax. In addition, residents are liable for the federal estate tax. Washington earners will still have to pay federal income taxes, though.

You can't withhold more than your earnings. Please adjust your. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Washington state does not impose a state income tax. How much you pay in federal income taxes depends on a few different factors, like your marital status, salary and if you want any additional withholdings.

You have to enter information about your filing status and dependents on your Form W-4, which allows your employer to know how much to withhold from your paycheck. That's why your employer will require you to fill out a W-4 whenever you start a new job. You should also fill out a new W-4 anytime you experience life changes, such as a marriage, divorce or the birth of a child. Over the last few years, there have been slight changes to withholding calculations for the federal income tax, as well as Form W The new W-4 removes the option to claim allowances, as it instead focuses on a five-step process that lets filers enter personal information, claim dependents or indicate any additional income or jobs.

The new version of the form must be filled out by all employees hired on or after Jan. But if you were hired before , you aren't required to complete it unless you're adjusting your withholdings or changing jobs. Workers have to pay 1. Employers then match those percentages so the total contributions are doubled. Self-employed individuals have to pay the full 2. However, there is a deduction available during tax season to help recoup some of that high self-employment tax.

The paycheck you take home may be further reduced if you contribute funds toward a health or life insurance plan that your employer sponsors, as any premiums you pay will be deducted from your wages. This is also the case if you contribute to a retirement account through your employer, like a k or b , or a medical expense account, such as a health savings account HSA or flexible spending account FSA. Businesses that make retail sales or provide retail services may be required to collect and submit retail sales tax see Marketplace Fairness — Leveling the Playing Field.

You may continue to itemize and deduct sales tax on your federal income tax returns. If you qualify to itemize your deductions on Form , Schedule A, you can take this deduction. This does not apply if you take the standard deduction. If you keep all your receipts, you can deduct actual sales and use tax you paid during the tax year.