Washington State Paycheck Calculator Guide

Washington Has No State Income Tax — But There Are Deductions

Washington is one of nine states with zero personal income tax on wages. For a Washington employee, your pay stub will show only:

1. Federal income tax (IRS brackets, same as every other state)

2. Social Security (6.2% up to ~$180,000 wage base)

3. Medicare (1.45% + 0.9% above $200,000)

4. WA Cares Fund deduction (0.58% of all wages — no cap)

5. Any voluntary deductions (401k, health insurance, etc.)

No state income tax line, no state disability insurance (unlike California's 1.1% SDI), and no local city income taxes.

The WA Cares Fund is the part most new Washington employees miss. It's been active since January 2023 and funds a long-term care insurance benefit for Washington residents. Unlike California's SDI (which returns short-term disability pay), WA Cares is a long-term care benefit — worth up to $36,500 in lifetime benefits for eligible workers after meeting vesting requirements.

WA Cares Fund: The 0.58% Payroll Deduction Explained

The WA Cares Fund deduction is 0.58% of all wages with absolutely no wage cap. This is an employee-paid deduction that appears on every Washington paycheck:

• $75,000 salary: $75,000 × 0.58% = $435/year ($16.73 bi-weekly)

• $150,000 salary: $150,000 × 0.58% = $870/year ($33.46 bi-weekly)

• $250,000 salary: $250,000 × 0.58% = $1,450/year ($55.77 bi-weekly)

Who is exempt: Washington residents who purchased qualifying private long-term care insurance before the December 3, 2021 opt-out deadline are permanently exempt. That window is now closed — new employees cannot opt out.

What you get in return: After paying in for at least 10 years (including at least 5 consecutive years) and working at least 500 hours/year, you become vested. Vested workers may access up to $36,500 in lifetime long-term care benefits — for home care, adult family homes, assisted living, or similar qualifying services.

Washington Paycheck Examples — 2026

Here are real take-home pay examples for Washington employees at common salary levels (single filer, bi-weekly pay, no pre-tax deductions):

Washington Capital Gains Tax: The Tech Worker Consideration

In 2023, Washington introduced a 7% tax on long-term capital gains above $250,000 per year. This is critical for tech employees who receive RSU (Restricted Stock Unit) grants.

What it applies to:

• Net long-term capital gains above $250,000 per year

• Stock sales, RSU vests treated as capital gains (not wages)

What it does NOT apply to:

• W-2 wages and salary income

• Retirement account withdrawals (401k, IRA)

• Real estate sales (excluded by initiative)

• Short-term capital gains (these are already taxed federally)

For most W-2 workers: zero impact. If your RSU grants or stock sales generate less than $250,000 in net gains in a year, the 7% tax doesn't touch you.

For high-earners with significant equity: A tech employee receiving $400,000 in RSU vest value above the $250,000 threshold owes 7% on $150,000 = $10,500 in WA capital gains tax — in addition to federal long-term capital gains tax (15%–20% depending on income).

Frequently Asked Questions