Washington retirement taxes at a glance (2026)
| State income tax | No state income taxWashington has no tax on wages or retirement income. It taxes long-term capital gains at 7%, plus 2.9% on gains over $1 million (9.9% total), from 2025. |
|---|---|
| Social Security | Not taxedSocial Security is not taxed. |
| Pensions | Not taxedPensions are not taxed. |
| 401(k) and IRA withdrawals | Not taxedIRA and 401(k) withdrawals are not taxed, and the capital gains tax does not apply to gains inside retirement accounts. |
| Government pensions | Not taxedGovernment pensions are not taxed. |
| Military retirement pay | Not taxedMilitary retirement pay is not taxed. |
| Estate tax | Yes, above $3,000,000The exclusion is $3,076,000 for deaths January 1 to June 30, 2026 and $3,000,000 for deaths from July 1, 2026. Rates run 10% to 35% for deaths July 1, 2025 to June 30, 2026, and 10% to 20% from July 1, 2026. |
| Inheritance tax | No |
| Property tax help for seniors | Washington offers a property tax exemption and a deferral program for senior citizens and people with disabilities who meet age and income limits; apply through the county assessor. |
| Sales tax | Sales and property taxes fund the state in place of an income tax. |
Recent changes and good to know
- From July 1, 2025 the estate tax exclusion rose to $3 million and the top rate rose to 35%; per WA DOR tables, rates return to the 10%-20% schedule for deaths on or after July 1, 2026.
- SB 6346, signed March 30, 2026, creates a 9.9% tax on household income over $1 million starting January 1, 2028 (first returns in 2029); a court challenge was announced.
How to lower your retirement taxes in Washington
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Washington too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming.
Frequently asked questions
Does Washington tax retirement income?
No: Washington does not tax Social Security, pensions, or retirement account withdrawals, though it has a capital gains tax and an estate tax.
Does Washington tax Social Security?
Social Security is not taxed.
Does Washington tax pensions?
Pensions are not taxed.
Does Washington tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are not taxed, and the capital gains tax does not apply to gains inside retirement accounts.
Does Washington tax military retirement pay?
Military retirement pay is not taxed.
Does Washington have an estate or inheritance tax?
The exclusion is $3,076,000 for deaths January 1 to June 30, 2026 and $3,000,000 for deaths from July 1, 2026. Rates run 10% to 35% for deaths July 1, 2025 to June 30, 2026, and 10% to 20% from July 1, 2026.
Sources (last verified 2026)
- Estate tax tables — Washington Department of Revenue (2026)
- New tiered rates for Washington's capital gains tax — Washington Department of Revenue (2025)
- Property tax — Washington Department of Revenue (2026)
- Millionaires tax (Washington state) — Wikipedia (2026)
- Washington retirement taxes — Taxstra (2026)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.