Updated October 7, 2026. Quick answer: No. The Washington Department of Revenue states that “Washington does not currently have an individual income tax.” That holds for a pension earned in Washington and for one earned in another state.
How Washington treats a pension earned elsewhere
| Item | What the state documents say |
|---|---|
| Nonresidents | Washington has no individual income tax, so the state does not tax a pension or other retirement income paid to someone who moved away. The Department of Revenue does not single out pensions on its income tax page. A pension earned while working in Washington is therefore not subject to a Washington income tax after a move. |
| Residents with a pension earned elsewhere | Washington residents pay no state personal income tax on a pension earned in another state, because the state has no individual income tax. A new 9.9% income tax starts Jan. 1, 2028 and applies only to adjusted gross income above $1 million. The source says: “No. Washington does not currently have an individual income tax.” The pages cited here do not say how the 2028 tax treats pension income. |
| Part-year residents (year of a move) | Because Washington has no individual income tax, there is no personal income tax return and no allocation or proration for a move into or out of the state. The first returns for the new tax are not due until April 2029. The source says: “first returns for the new tax will be due in April 2029.” A person who moves in or out of Washington in 2025 files no Washington income tax return. |
| Rate | Washington prints no individual income tax rate for 2025. The only individual income tax the state describes is the new 9.9% tax that begins Jan. 1, 2028. The 9.9% rate is not a 2025 rate. |
| Return to file | Washington has no resident or part-year resident income tax return for 2025. The Department of Revenue says it will publish guidance on who must file and on forms for the new tax as it becomes available. A Washington resident with a pension files no state income tax return for 2025. |
| Capital gains excise tax | Washington separately taxes the sale or exchange of long-term capital assets by individuals. That tax is on asset sales, not on pension payments, and the state lists assets held in certain retirement accounts as exempt. The source says: “Assets held in certain retirement accounts.” |
A $40,000 move-year example
A retiree receives $40,000 of pension in the year of a move: $20,000 before the move date, as a Washington resident, and $20,000 after leaving.
Washington levies no personal income tax, so the $40,000 is not taxed by Washington whether it was paid before or after the move: $0 on $40,000. Federal tax still applies.
What changes in 2026
The 2026 Legislature enacted Senate Bill 6346, a 9.9% income tax beginning Jan. 1, 2028 on adjusted gross income above $1 million, with first returns due in April 2029.
The federal rule that protects a nonresident
4 U.S.C. 114(a) bars a state income tax on retirement income of an individual “who is not a resident or domiciliary of such State”. Retirement income means certain plan payments made as a “series of substantially equal periodic payments”, so not every payment is covered.
Related: how Washington taxes retirement income, whether Washington taxes pensions, Washington to Arizona retirement taxes, Washington to Florida retirement taxes, out-of-state pension tax by state, and deferred compensation lump sums after a move.
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Answer againSources
- Income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax
- Frequently asked questions about income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax/frequently-asked-questions-about-income-tax
- Capital gains tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Government Publishing Office, 2023 edition): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.