State Tax in Washington

If you have recently moved to Washington state, or simply haven't filed state taxes there before, then it's only natural that you'd be confused. Hopefully, you will find this information on state tax in Washington to be of use. The good news is that the subject is not as confusing as you may have originally thought. For one thing, the state of Washington has no income tax. It is one of only seven states in the union that offers this. However, don't think you are completely off the hook. The state does charge other taxes such as sales tax and estate tax.

Sales Tax in Washington

The primary method by which state tax is collected in Washington is via sales tax. The sales tax rate in the state is 6.5 per cent. It is levied on most products as well as some services. Some products that do not have sales tax in the state include food and ingredients. There are some exceptions though such as prepared foods, dietary supplements, and soft drinks. Donuts are not taxable unless they are sold with eating utensils, such as plastic knives and forks. Sometimes there will be local sales taxes included in the state sales tax. You'll need to look this up to see if it applies to you and what you will be charged.

Property Tax in Washington

Property tax is another form of state tax in Washington that could be levied against you. It is the most important source of income for state and accounts for nearly 30 per cent of its income.  When your property is assessed to see how much you will pay, it will be appraised at 100 per cent of its total fair market value. For more details you can turn to the home owner's guide. If you are a senior citizen or have a disability, then you may receive an exemption for this property tax.

Estate, Inheritance, And Other Tax Laws in Washington

State tax in Washington also includes a few other types of taxation. However, you'll be happy to know that there is no inheritance tax in the state. Estate tax is decoupled from the federal estate tax, so you will have to pay this. Another type of taxes in the state is a 13 per cent litter tax that is imposed on manufacturers and retailers. Washington doesn't impose heavy taxes on intangible assets such as bank accounts, stocks, or bonds.  A list of debtors who have unpaid tax liabilities can be found on the Washington website.

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