WalletHub’s study found the median Washington household pays $10,915 per year on state and local taxes, or 11.22 percent more than the national average

Brett Davis
The Center Square Washington

Washington came in at No. 38 in a ranking of tax burden by state, according to a recent study by WalletHub. That translates into Washingtonians paying some of the highest overall tax rates in the nation.

The personal finance website determined its rankings by comparing state and local tax rates in all 50 states and the District of Columbia against national medians.  

WalletHub’s study found the median Washington household pays $10,915 per year on state and local taxes, or 11.22 percent more than the national average. When adjusted for the cost of living, the Evergreen State’s rank worsens to No. 40.

WalletHub analyst Jill Gonzalez explained how not having certain taxes does not necessarily translate into an overall lower tax rate in Washington.

“Washington has the 14th highest taxes in the country, despite not having an income tax or a vehicle tax,” she told The Center Square via email. “This is because it has the highest sales and excise taxes nationwide, accounting for more than 8 percent of the income of a middle income earner. Plus, the amount paid on real estate taxes is above average.”

According to the WalletHub study, Washingtonians pay $6,012 in sales and excise taxes and $2,311 in real estate taxes.

In 2021, Washington enacted a new 7 percent tax on profits of more than $250,000 from selling stocks, bonds, and other high-end assets that is currently before the state Supreme Court. Oral arguments in the case were heard on Jan. 26, with a ruling expected later this year on the tax’s constitutionality.

Residents in neighboring states pay less in taxes, per the WalletHub study, with Oregon ranked No. 11 and Idaho ranked No. 8.

The 10 states with the lowest tax burden:

1. Alaska

2. Delaware

3. Montana

4. Nevada

5. Wyoming

6. Florida

7. Utah

8. Idaho

9. Colorado

10. Tennessee

The 10 states with the highest tax burden:

51. Illinois

50. Connecticut

49. New York

48. Pennsylvania

47. Kansas

46. Iowa

45. Ohio

44. Nebraska

43. New Jersey

42. Wisconsin

This report was first published by The Center Square Washington.