What it costs to live and work in Washington: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Washington | Source | |
|---|---|---|
| Minimum wage | $17.13 an hour | Washington State Department of Labor & Industries: Minimum wage |
| State income tax | none | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 6.5 % | Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026) |
| Median gross rent | $1,824 a month (2024) | US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state |
Washington's minimum wage is $17.13 an hour in 2026, the highest state rate, and rises to $17.73 on January 1, 2027. Some cities set higher rates.
Washington does not tax wages. It taxes long-term capital gains only: 7 %, and 9 % on gains over $1 million.
The state sales tax is 6.5 %; local rates are added (average local rate 3.01 %), so combined rates are among the highest in the country.
What income does rent in Washington take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,824 a month, that means a household income of about $73,000 a year before tax.
Good to know
- Employees pay 0.58 % of wages for WA Cares, the state long-term care insurance program (Tax Foundation).
- A 9.9 % tax on individual income above $1 million (SB 6346, chapter 238, Laws of 2026) starts on January 1, 2028.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, 2026 (rates as of January 1, 2026) (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 Median Gross Rent (Dollars), by state (2024)
- Washington State Department of Labor & Industries: Minimum wage (2026-10-11)
- Washington State Legislature: SB 6346 bill summary (Establishing a tax on millionaires, C 238 L 26) (2026-03-30)
- Washington State Senate: Final bill report, ESSB 6346 (2026)