OLYMPIA — Washington State has long been a haven from income taxes, and new national data confirms residents here are among the least burdened in the country. According to USAFacts, which analyzed U.S. Census Bureau figures, the average American paid $1,395 in state income taxes in 2023. Washington residents paid just $108 on average — placing the state third-lowest among all states that technically collected any income-related revenue.

Washington is one of nine states with no broad-based state income tax, alongside Alaska, Florida, Nevada, South Dakota, New Hampshire, Tennessee, Texas, and Wyoming. That distinction has made the Evergreen State attractive to workers and businesses alike, especially compared to West Coast neighbors. Oregon topped the national rankings in 2023, with residents paying an average of $3,123 per person — nearly 29 times what Washington residents paid.

Oregon also led the country in income tax burden — the share of personal income paid in state taxes — at 4.6%. Washington’s burden, by contrast, was just 0.1%, one of the lowest of any state. Massachusetts and New York rounded out the top tier of high-tax states, with residents paying nearly $3,100 and $2,970 per person, respectively.

That income tax advantage, however, doesn’t tell the whole story. Washington offsets its no-income-tax model with some of the nation’s steepest consumption and payroll taxes. The state’s gas tax rose to 55.4 cents per gallon in July 2025 — third-highest in the country — and is set to increase 2% annually. The combined state and local sales tax averages 9.47% statewide. Washington also levies some of the highest spirits taxes in the nation. And since July 2023, most W-2 workers have been required to pay into the WA Cares Fund — the nation’s first mandatory public long-term care program — at a rate of 0.58% of gross wages with no income cap. For a worker earning $60,000 a year, that’s roughly $348 annually, on top of everything else.

But Washington’s tax landscape is shifting further. In March 2026, the state legislature passed a new income tax targeting earnings of $1 million or more. Set to take effect January 1, 2028, the law represents the first direct income tax in state history and has reignited debate about Washington’s long-standing tax structure.

For most Washington residents, income tax remains off the table for now. But between rising gas taxes, a high sales tax burden, mandatory payroll deductions, and a new levy on top earners, the full picture of what it costs to live in Washington is becoming more complex — and more worth understanding.

Sources: USAFacts / U.S. Census Bureau (2023); Tax Foundation; Washington State Standard; OPB; WA Cares Fund / ESD