Washington Income Tax CalculatorNo Wage Tax, Capital Gains Excise (2025)

The formulas

• Taxable gains = long-term capital gains - $278,000 standard deduction (2025)
• Tax = 7% x first $1,000,000 of taxable gains + 9.9% x taxable gains above $1,000,000

How it works

Tax year: 2025, the latest year the Department of Revenue has published the standard deduction for.

Washington has no tax on wages. It levies an excise tax on an individual's long-term capital gains: 7 percent on the first $1,000,000 of taxable gains and, from tax year 2025, 9.9 percent on taxable gains above $1,000,000. The standard deduction is $278,000 for 2025 ($270,000 for 2024) and is adjusted for inflation each year.

Gains from real estate, retirement accounts and certain other assets are exempt, and a charitable donation deduction is available. Enter gains after those exclusions.

ESSB 6346, signed March 30, 2026, adds a 9.9 percent tax on Washington taxable income above a $1,000,000 standard deduction (one deduction shared by spouses), starting January 1, 2028. It is not included.

Local taxes: Washington cities and counties do not tax income.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Sources

• RCW 82.87.040 (7 percent rate, 2.9 percent additional tax over $1,000,000)
• RCW 82.87.060 (standard deduction)
• Washington DOR, capital gains tax
• Washington DOR, new tiered rates for Washington's capital gains tax
• Washington Senate bill report, ESSB 6346 (2026)

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