Washington State Retirement Taxes 2026: No Income Tax

The income-tax picture (statute-cited)

The estate tax: 2026’s numbers (ESSB 5813)

Probate costs

Is Washington a good state to retire in for taxes?

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2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.

Updated July 24, 2026. Quick answer: while you’re alive, Washington is a zero-tax state for retirees — no personal income tax today (a 9.9% tax on adjusted gross income above $1 million starts January 1, 2028), so Social Security, pensions, 401(k) and IRA withdrawals go untaxed today (the 2028 tax has no retirement-income deduction), and the state’s 7% capital-gains excise explicitly exempts retirement accounts (RCW 82.87.050). At death, the picture inverts: ESSB 5813 (2025) rebuilt Washington’s estate tax with a $3,000,000 exclusion and a 35% top rate for deaths from July 1, 2025 through June 30, 2026; Chapter 209, Laws of 2026 (ESB 6347) restores a 20% top rate for deaths on or after July 1, 2026, with the exclusion staying at $3,000,000. “Great until you die with $3 million” is the honest one-line verdict.

Federal civil service pensions in Washington: does Washington tax federal pensions.

Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Washington tax on inherited IRA withdrawals.

Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Washington tax 403(b) and 457(b) withdrawals.

Before the tax question, the Washington LEOFF Plan 2 options, refund and COLA rules, from the Department of Retirement Systems’ own documents: Washington LEOFF retirement decisions.

Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Washington tax withholding on IRA and 401(k) withdrawals.

Selling your home? How the state taxes the profit, from its own tax documents: Does Washington tax the profit from selling your home?.

Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Washington tax TSP withdrawals?.

For a pension earned elsewhere or paid after you move: does Washington tax out-of-state pensions.

Looking ahead to 2027? The state’s estate tax exemption for deaths in 2027, from its own tax documents: Washington estate tax exemption 2027.

Before the tax question, the Seattle city pension options, partial lump sum and refund rules from the SCERS handbook: Seattle SCERS retirement decisions.

For trust income specifically: does Washington tax trust income.

Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Washington have an inheritance tax?.

For dividends and interest specifically: does Washington tax dividends and interest.

Contributing to an HSA? How the state taxes it, from its own tax documents: Does Washington tax HSA contributions?.

Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Washington have a gift tax?.

For annuity payments specifically: does Washington tax annuity income.

Saving for a child’s college? The state’s 529 break has its own page: Washington 529 plan tax deduction.

For military retired pay: does Washington tax military retirement.

For 401(k) and IRA withdrawals specifically: does Washington tax 401(k) and IRA withdrawals.

For the sale of stocks, funds or real estate: does Washington tax capital gains.

Related state retirement tax guides: Washington to Georgia Retirement Taxes.

Washington is one of 43 jurisdictions that do not tax Social Security at any income level in 2026. The other 8 exempt benefits only up to an income or age limit. Full rules and statutes: the 51-state table.

The income-tax picture (statute-cited)

State income tax	None on wages or retirement income
Social Security / pension / 401(k) / IRA	Not taxed
Capital-gains excise	7% on long-term gains above an inflation-adjusted deduction (~$270k+), plus a 2.9% surtax on gains over $1M (SB 5813, 2025) — retirement-account gains and distributions are exempt (RCW 82.87.050); most retirees never touch it
Inheritance tax	None

The estate tax: 2026’s numbers (ESSB 5813)

ESSB 5813 (Laws of 2025, ch. 421) raised the exclusion from its long-frozen $2,193,000 to $3,000,000 for deaths on/after July 1, 2025 — and simultaneously raised the top rate from 20% to 35% for deaths from July 1, 2025 through June 30, 2026 (Table W brackets 10/15/17/19/23/26/30/35%, with 35% applying above $9,000,000 of taxable estate). Chapter 209, Laws of 2026 (ESB 6347, effective June 11, 2026) puts the earlier schedule back for deaths on or after July 1, 2026: 10/14/15/16/18/19/19.5/20%, with 20% applying above $9,000,000 of taxable estate (RCW 83.100.040(2)(a)(iii)). Per WA DOR tables, the 2026 exclusion is $3,076,000 for deaths January 1–June 30, 2026, then $3,000,000 for deaths on/after July 1, 2026 — with the statute providing an annual inflation adjustment for deaths in 2027 and later (RCW 83.100.020(1)(a)(xi)), although the Department of Revenue states the exclusion “is not set to increase going forward due to an expired CPI in the statute” and lists $3,000,000 for 2027 and after. The qualified family-owned business interest deduction was also increased (WA DOR lists a $3,076,000 maximum for 2026 deaths). In a state where home equity alone can approach the exclusion, estates that would owe nothing federally (the 2026 federal exemption is $15M) can owe Washington six or seven figures. Full national table: estate tax by state.

Probate costs

No percentage schedule: a will’s compensation provision for the personal representative is taken as full compensation unless renounced, and otherwise the court allows compensation it deems “just and reasonable” (RCW 11.48.210), and Washington’s nonintervention powers let most estates administer without ongoing court supervision — keeping costs down. Small estates: $100,000 of personal property by affidavit after a 40-day wait (RCW 11.62.010). Context: probate cost by state · small-estate limits by state · will vs. trust calculator.

Is Washington a good state to retire in for taxes?

For retirement income today: top tier, with no personal income tax and a capital-gains excise built to spare retirement accounts. A 9.9% tax on Washington taxable income starts January 1, 2028, after a $1,000,000 standard deduction per individual (combined for spouses, adjusted annually), and the act says the exemptions for certain public pension systems do not exempt those benefits from it. For estates: a graduated 10% to 20% rate on the amount above $3M for deaths on or after July 1, 2026, with an exclusion not scheduled to rise, in a high-home-value state — Washington retirees with appreciated homes plus retirement accounts cross the line more easily than they expect. If your estate is under ~$3M, Washington is simply excellent; above it, estate planning here matters more than in any other no-income-tax state.

Washington vs. other no-income-tax states

State	Social Security	Pension / 401(k) / IRA	Estate tax	Inheritance tax
Washington	Not taxed	Not taxed (no income tax)	Yes: $3M exclusion, top rate 20% (deaths on or after July 1, 2026)	None
Texas	Not taxed	Not taxed (no income tax)	None	None
Florida	Not taxed	Not taxed (no income tax)	None	None
Tennessee	Not taxed	Not taxed (no income tax)	None	None

Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.

Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Washington may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.

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Finding a financial advisor in Washington

Per the SEC’s July 2026 Investment Adviser roster, Washington has 270 SEC-registered advisory firms (#17 nationally) managing $1.23 trillion (#17 by AUM). Full breakdown: Washington advisor statistics. Reviewing fee structures before or after a move: fee-drag calculator.

Thinking about moving?

Four taxes change when you move state in retirement, not one: income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Corridor comparisons involving Washington:

Leaving Washington? See leaving Washington in retirement.

Compare any two states with the retirement tax comparison tool, or browse all corridors at the relocation hub.

What probate costs in Washington

Washington sets probate compensation by a “reasonable fee” standard with no percentage schedule, so anyone quoting a firm figure is estimating. And the small-estate shortcut of $100,000 does not clear a solely owned house on its own, which is the detail most guidance omits. Full detail with the governing statute, the court filing fee and the threshold: Washington probate cost. To price a specific estate, use the probate cost calculator.

Cite or share this guide

Suggested citation: Clear Money Guide, “Washington Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/washington-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.

Figures verified against RCW 83.100.020, 83.100.040, 83.100.046, 82.87.040, 82.87.050, 82.87.060, 11.62.010 and 11.48.210, and the Washington Department of Revenue estate-tax, estate-tax-tables, capital-gains, income-tax and 2026-tax-legislation pages on September 30, 2026; the federal 2026 estate exemption was read at 26 U.S.C. 2010(c)(3); the 2026 capital-gains standard deduction, the qualified family-owned business interest deduction beyond the DOR table, and the SEC adviser roster figures were not re-checked.

Washington Retirement Taxes (2026): No Income Tax – But a 20% Top Estate-Tax Rate

What this state guide covers