Retire in Washington: 2026 Tax & Cost of Living Guide
No state income tax but a 7% capital gains tax on >$270K/yr gains and a low-threshold estate tax (~$2.2M). Attractive for retirees below the CG and estate thresholds.
State income tax
None
Social Security
Not taxed
Estate tax
Yes
Property tax
0.87%
How Washington Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Not taxed
- Private pensions
- Not taxed
- 401(k) / IRA withdrawals
- Not taxed
Exemption / exclusion
Data not yet verified for this state. Consult a state tax professional.
Capital Gains in Washington
7% capital gains tax on long-term gains above $270,000 per year (enacted 2022)
Estate & Inheritance Tax
State Estate Tax
Exemption: $2,193,000 · Top rate: 20%
Federal estate tax exemption is $13.61M (2024) — Washington's lower threshold means more estates are subject to state tax than federal.
Top Cities for Retirees in Washington
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
Retirement Methodology Calculators
How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.
FIRE Calculator
See how much you need to retire — in Washington or anywhere else.
Safe Withdrawal Rate
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.