Updated October 16, 2026. Quick answer: Washington does not tax an inherited IRA withdrawal at the state level today: the Department of Revenue says “Washington does not currently have an individual income tax”, though a 9.9% income tax on individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million is set to begin January 1, 2028.
Washington at a glance
| Item | What the documents say |
|---|---|
| How the state taxes retirement-account income | No individual income tax at present |
| Do the state’s documents address beneficiaries? | Not addressed: there is no individual income tax to apply to it |
| Retirement exclusion or credit | None; the Department’s income tax page names no retirement exclusion for the 2028 tax |
| Rate in the documents read | No current individual income tax; from January 1, 2028 a 9.9% income tax applies to individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million |
| State inheritance or estate tax | The Department’s estate tax page says the filing threshold is $3,076,000 for deaths January 1 through June 30, 2026 and $3,000,000 for deaths on or after July 1, 2026 |
| Changed for 2026? | The 2026 Legislature established, through Senate Bill 6346, a 9.9% income tax beginning January 1, 2028 |
What the Washington documents say
The Department of Revenue’s income tax page says “Washington does not currently have an individual income tax”.
It also describes a tax that has been enacted but has not started. “Beginning Jan. 1, 2028, a new 9.9% income tax will apply” to individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million, and the first return will be due in 2029. The 2026 Legislature established it through Senate Bill 6346.
The Department’s estate tax page describes a separate tax paid by the estate: “The estate tax is a tax on the right to transfer property” at the time of death. It sets a filing threshold of $3,076,000 for decedents dying January 1 through June 30, 2026 and $3,000,000 on or after July 1, 2026.
The federal 10-year rule and your Washington tax year
IRS Publication 590-B says a beneficiary may be required to take the entire account balance by the “end of the 10th year following the year of the owner’s death”, with exceptions for certain beneficiaries. Because the balance generally has to come out within that window, the timing of each withdrawal decides which tax year it lands in. See the 10-year rule and annual RMDs, lump sum versus spreading withdrawals and inherited IRA rules.
Withholding and other state taxes
Whether a state withholds from a withdrawal is a separate rule: see state withholding on retirement withdrawals. For Washington’s own death taxes, see Washington estate tax.
What the documents do not say
- The documents read do not mention inherited accounts or beneficiaries of retirement accounts.
- They do not describe how the 2028 tax would treat an IRA distribution.
- They say nothing about a deduction or credit for estate tax or income in respect of a decedent.
Common mistakes
- Assuming Washington’s rule for your own retirement income also covers an account you inherited: read whether its documents address beneficiaries, and confirm the point with a Washington preparer.
Related: state tax on inherited IRA withdrawals, state by state, whether Washington taxes 401(k) and IRA withdrawals, Washington retirement taxes, Washington estate tax, inherited IRA rules, spouse versus non-spouse beneficiary rules, and state withholding on retirement withdrawals.
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Answer againSources
- Income tax: https://dor.wa.gov/taxes-rates/income-tax
- Estate tax: https://dor.wa.gov/taxes-rates/other-taxes/estate-tax
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.