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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

Seattle

$3,145/month estimated cost of living

Compare Against Other States

All 50 US States + DC

Ranked by tax-friendliness for retirees. Grouped by income-tax type.

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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.

Dave Ramsey

12% / 8%

Bill Bengen

4% rule

Bogleheads

7% / 4%

FIRE Calculator

See how much you need to retire — in Washington or anywhere else.

Safe Withdrawal Rate

Model your retirement paycheck with real historical data.

Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.