Retirement planning for Washington.

No state income tax. Start with your situation

Washington at a glance (2026)

Top combined rate: 37%
State tax model: None
Standard deduction: $16,100
RMD start age: 73

No state income tax

Washington does not levy a state income tax. Your 401(k)/IRA withdrawals, Roth conversions, Social Security, and investment gains are taxed only at federal rates (10-37%).

Washington retirement planning insights

Washington has no state income tax. Combined with no tax on Social Security, pensions, or 401(k)/IRA withdrawals at the state level, it's one of the top retirement tax states
Washington's 7% capital gains tax (on gains over $270,000) was upheld by the state supreme court. This affects retirees liquidating large non-retirement portfolios
Unlike Texas and Florida, Washington has a relatively high sales tax (6.5% state + local, often totaling 10%+) which impacts spending-heavy retirees
The combination of no income tax + Roth conversion efficiency makes Washington ideal for high-income tech workers transitioning to retirement in the Seattle area

Frequently asked questions

Does Washington tax retirement income?

No: Washington has no state income tax. 401(k)/IRA withdrawals, Social Security, pensions, and Roth conversions are all state-tax-free. The only exception is the 7% capital gains tax on realized gains over $270,000/year (not including retirement account withdrawals).

Is the Washington capital gains tax a concern for retirees?

Only if you're selling more than $270,000 in appreciated non-retirement investments in a single year. Retirement account withdrawals (401k, IRA, Roth) are exempt. Strategic lot selection and multi-year distribution can keep you under the threshold.

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Start with a Washington situation.

Turn your income, spending, savings and one life event into a retirement timeline.

Start with your situation