|
Washington State and Local Tax Profile
Income Taxes
- No state personal income tax
- Retirement Income: Not taxed.
Sales Taxes
- State Sales Tax: 6.5% (food and prescription drugs exempt) Local taxes may increase total tax to 8.9%. Tax is 6.8% on sales and leases of motor vehicles.
- Gasoline Tax: 34 cents/gallon
- Diesel Fuel Tax: 34 cents/gallon
- Cigarette Tax: $2.03/pack of 20
Property Taxes
- Property taxes account for about 30% of Washington's total state and local taxes. Properties are appraised at 100% of fair market value. A property tax exemption program is available for persons age 61 or older, or persons unable to work due to a physical disability. The property, which can include up to an acre of land, must be owner/buyer occupied. The state offers a property tax exemption program for those whose household income does not exceed $35,000. If your income is between $35,000 and $40,000, you may qualify for the tax deferral program. If your annual income for the application year does not exceed $35,000 your home will be exempt from all excess and special levies approved by voters. If your household income is between $25,001 and $30,000, you are exempt from regular levies on $50,000 or 35% of the assessed value, whichever is greater (but not more than 70,000 of the assessed value.
- The state's tax deferral program works in conjunction with the exemption program. A senior citizen or disabled person may defer property taxes or special assessments on their residence if they meet certain age, disability, ownership, occupancy and income requirements. The state pays the taxes on behalf of the claimant and files a lien on the property to indicate the state has an interest in the property. The deferred taxes must be repaid to the state plus 5% interest when the owner dies, sells or moves from the home, or doesn't have sufficient equity in the property. Qualified people may participate in both or one of these programs.
- For more details on property taxes, click here or call 800-647-7706.
Estate Tax
- Washington replaced the inheritance tax in 1982 with an estate tax. A new Washington estate tax took effect May 17, 2005. Estates of decedents who die on or after May 17th are subject to the estate tax. This is a stand-alone tax that incorporates some provisions of the Internal Revenue Code as of January 1, 2005. However, the Washington estate tax is not affected by the termination of the federal estate tax in 2010. The new law allows an exemption of $1.5 million for decedents dying in 2005 and $2 million for decedents dying on or after January 1, 2006. These exemptions match the estate tax exemptions under the federal estate tax law for 2005, 2006, 2007 and 2008. The exemption increases to $3.5 million in 2009. The estate tax rates start at 10% on values in excess of $1.5 million and increase gradually to 19% on amounts in excess of $9 million.
- For further information, visit the Washington Department of Revenue site or call 800-647-7706.
Related Articles:
|
|
Last Updated ( Monday, 21 January 2008 )
|