Your inheritance: Is it taxed in Washington State?
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Your inheritance: Is it taxed in Washington State?

| Mar 1, 2019 | inheritances |

It can be hard to deal with tax season, and one of the biggest issues is the state tax that is found on every paycheck. However, there are some states that treat you differently. One is Washington. In Washington, there is no state tax, but that can affect other taxes, such as your inheritance tax or property taxes.

To understand how you’ll be taxed in Washington, here’s a helpful list of statistics for 2019.

1. Sales tax

Washington State’s sales take is approximately 6 percent, but municipalities add up to 3.9 percent on top of that initial 6 percent levy. With a combined rate averaging out at 9.19 percent, this is the fourth-highest sales-tax rate in the United States.

2. Estate taxes

Estate taxes are a little different in Washington, too. Estate taxes are levied against estates of $2.129 million or more. The rates can vary from 10 to 20 percent. Family-owned businesses pay less, thanks to a $2.5 million deductible.

3. Inheritance taxes

Washington does not have inheritance taxes. If you’re living there and expect an inheritance is coming your way, you’ll get exactly what you expect and won’t pay the taxman a dime.

4. Property taxes

Finally, there are property taxes. The median amount paid on homes valued at $266,200 is just under $2,800.

These are a few taxes you can expect in Washington. As for inheritances, this is one of a few states that has your best interests at heart, allowing you to receive everything that your loved one intended for you to have after they passed.