How the Washington Paycheck Calculator Works

This calculator breaks down your Washington paycheck by accounting for federal income tax and FICA taxes only. Washington is one of nine states with no state income tax, making paycheck calculation simpler than most states. You keep more of your paycheck, but Washington compensates through high sales tax (6.5-10.4%) and property taxes.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets based on your filing status and W-4 allowances. There is no Washington state income tax withheld. Social Security takes 6.2% of gross pay up to $176,100. Medicare takes 1.45% of all wages, plus 0.9% additional on high earners. What’s left is your net pay.

Understanding Washington’s Zero Income Tax

No State Income Tax Means Higher Take-Home

Washington has no state income tax on wages. This means you keep 5-10% more of your paycheck compared to states like California, Oregon, or New York. A $100,000 salary in Washington nets roughly $76,000 after federal and FICA taxes. The same salary in California nets around $69,000 after state tax. That’s $7,000 more annually just from avoiding state income tax.

This makes Washington attractive for high earners. Someone making $200,000 saves $10,000-20,000 annually compared to high-tax states. The savings compound over a career.

Sales Tax Offsets Some Savings

Washington compensates for no income tax with high sales tax. The state base rate is 6.5%, but local rates push total sales tax to 8-10.4% in Seattle, Tacoma, and Spokane. Grocery food is exempt, but nearly everything else gets taxed. If you spend $50,000 annually on taxable goods, you pay $4,000-5,000 in sales tax.

Whether this works in your favor depends on spending habits. High earners who save aggressively benefit enormously (keep high income, avoid sales tax on savings). Lower earners who spend most income might prefer states with income tax but lower sales tax.

Capital Gains Tax for High Earners

Washington enacted a 7% capital gains tax on long-term capital gains over $250,000 annually (as of 2022). This affects high earners selling stocks, businesses, or investment properties. Most W-2 employees never hit this threshold, but tech workers with significant stock compensation or business owners might. Plan accordingly if you expect large capital gains.

Real Washington Paycheck Examples

Annual Salary	Gross Biweekly	Federal Tax	FICA	Net Biweekly
$50,000	$1,923.08	$155.00	$147.12	$1,620.96
$75,000	$2,884.62	$320.00	$220.67	$2,343.95
$100,000	$3,846.15	$530.00	$294.23	$3,021.92
$150,000	$5,769.23	$980.00	$441.35	$4,347.88
$200,000	$7,692.31	$1,550.00	$588.46	$5,553.85

Note: Examples assume single filing status, 1 federal allowance, no pre-tax deductions. Actual amounts vary.

Washington vs. Other States Comparison

State	State Income Tax	Sales Tax	$100k Net Pay
Washington	0%	6.5-10.4%	$76,000
Oregon	~8.75%	0%	$71,000
California	~9.3%	7.25-10.75%	$69,000
Texas	0%	6.25-8.25%	$76,000
Idaho	~5.8%	6%	$73,000

Washington and Texas tie for highest take-home pay among these states. Oregon offers zero sales tax but charges 8-9% income tax. California hits you with both high income tax and high sales tax. Washington’s model (zero income tax, high sales tax) works best for high earners who save aggressively.

Edge Cases and Common Questions

What If I Live in Washington But Work in Oregon?

You pay Oregon income tax on income earned in Oregon, even though you live in Washington. Oregon withholds state tax from your paycheck. Washington has no income tax, so you don’t owe WA anything. This is common for Vancouver, WA residents working in Portland. You get Oregon’s zero sales tax benefit while paying Oregon income tax.

What If I Live in Oregon But Work in Washington?

Washington employers don’t withhold state tax (since WA has none). But Oregon taxes all income earned by residents, including wages from Washington jobs. You need to make estimated tax payments to Oregon or you’ll owe a large tax bill in April. Set aside 8-9% of gross income for Oregon taxes.

What If I Move to Washington Mid-Year?

If you move from a state with income tax to Washington, you pay that state’s tax only on income earned while living there. Once you establish Washington residency, no more state tax. Update your W-4 with your employer. You might get a refund from your previous state for over-withholding.

What About B&O Tax for Self-Employed?

Washington has no income tax on individuals, but self-employed people pay Business and Occupation (B&O) tax on gross receipts. Rates vary by industry (0.15% to 1.5%). A freelancer earning $100,000 might pay $150-1,500 in B&O tax depending on classification. This is much less than income tax in other states, but it’s not zero.

What If Washington Passes Income Tax?

Washington’s constitution requires voter approval for income tax. Attempts have failed multiple times. While possible, the political hurdles are high. The state Supreme Court has also ruled that income is property and thus limited by constitutional property tax caps, making traditional income tax difficult to implement.

What If I Have Large Capital Gains?

Washington’s 7% capital gains tax applies to long-term gains over $250,000 annually. If you sell stock or a business generating $300,000 in gains, you pay 7% on $50,000 ($3,500 total). Most W-2 employees never hit this threshold. High earners with significant investments should plan for this when selling assets.

What If I’m Self-Employed in Washington?

Self-employed individuals pay both halves of FICA (15.3%) plus federal income tax, but no Washington state income tax. You also pay B&O tax on gross receipts. Total tax burden is typically 25-35% for self-employed vs. 35-45% in high-tax states. Washington is very attractive for freelancers and business owners.

Understanding Gross vs. Net in Washington

The 24-28% Rule

Expect to lose roughly 24-28% of gross pay to federal and FICA taxes in Washington. A $90,000 salary nets around $67,000-69,000. This is 5-10% higher net pay than states with income tax. Always budget with net pay, not gross, and remember that sales tax will consume some of that advantage.

Pre-Tax Benefits Are Still Valuable

Even without state income tax, pre-tax deductions save 25-35% in Washington (federal + FICA). If you’re in the 22% federal bracket, every $1,000 contributed to a 401(k) saves you $220 federal + $76.50 FICA = $296.50 in taxes. Max out 401(k), HSA, and FSA to reduce federal burden.

Should You Work in Washington?

When It Makes Sense

Washington is excellent for high earners in tech, aerospace, healthcare, and finance. Seattle and Bellevue offer competitive salaries with zero state income tax. A $150,000 salary in Seattle nets $10,000-15,000 more annually than the same salary in California or New York. The savings compound significantly over a career.

Washington also works well if you’re a saver. Keep more of your paycheck, invest aggressively, and avoid sales tax on investment growth (until you withdraw). The math heavily favors high-income savers.

When It Doesn’t Make Sense

Don’t move to Washington for a marginal salary increase without accounting for cost of living. Seattle housing costs are extremely high. A $120,000 salary in Seattle might provide less purchasing power than $100,000 in Dallas or Phoenix after factoring in rent, sales tax, and expenses.

Also consider that Washington’s high sales tax hurts lower earners more. If you spend most of your income, you pay sales tax on nearly everything. States with income tax but lower sales tax might leave you with more buying power.

Frequently Asked Questions

Does Washington Have Income Tax?

No. Washington is one of nine states with no state income tax on wages (along with Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Wyoming, and New Hampshire). This applies to W-2 wages, self-employment income, and most other personal income. The state does have a 7% capital gains tax on gains over $250,000 annually.

What’s Washington’s Sales Tax?

Washington’s state sales tax is 6.5%, but local jurisdictions add their own taxes. Total sales tax ranges from 7% to 10.4%. Seattle is 10.25%, Tacoma is 10.3%, Spokane is 9%. Grocery food is exempt, but most other purchases are taxed. This is how Washington funds government without income tax.

Do I Need to File a Washington State Tax Return?

No. Washington has no income tax, so there’s no state tax return for individuals. You only file federal taxes. This saves time and complexity compared to states requiring both federal and state returns.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 federal tax tables. Where it might differ: unusual deductions, garnishments, union dues, or employer-specific withholding. Small differences (under $50 per paycheck) are normal. For precise numbers, check your actual paystub.

Will Washington Ever Get Income Tax?

Unlikely in the near term. Washington’s constitution requires voter approval for income tax, and voters have rejected it multiple times. The state Supreme Court has also created constitutional barriers. While possible through constitutional amendment, the political and legal hurdles are significant.

What’s the B&O Tax?

Business and Occupation tax applies to businesses (including sole proprietors and freelancers) based on gross receipts, not net income. Rates range from 0.15% to 1.5% depending on business classification. Most W-2 employees don’t pay B&O tax unless they have side business income.

Maximizing Your Washington Take-Home Pay

Max Federal Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). These reduce federal taxable income, saving 22-37% federal plus 7.65% FICA. On a $120,000 salary, maxing a 401(k) saves roughly $7,000 in total federal taxes.

Take Advantage of Zero Income Tax

Washington’s zero income tax means every raise and bonus is taxed only federally. A $10,000 raise in California costs $930 in state tax. In Washington, you keep the full amount (minus federal and FICA). Negotiate aggressively knowing you keep more of each dollar.

Shop Smart to Minimize Sales Tax Impact

Buy groceries (exempt from sales tax), shop in lower-tax jurisdictions when possible, and make major purchases (cars, appliances) in areas with 7-8% rates instead of Seattle’s 10.25%. A $40,000 car purchase saves $920 by buying in a 7% area versus Seattle.