Retiring in Washington: how your income is taxed
Washington is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Washington
Washington has no state income tax on wages or retirement income, so Social Security, pensions and retirement-account withdrawals are not taxed by the state. Washington does tax long-term capital gains (7% above a $278,000 standard deduction in 2025, plus a surcharge on very large gains), but Social Security and retirement-account withdrawals are not subject to it.
Calculate your Washington retirement taxes
State income tax in Washington: $0 a year
In Washington, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Washington you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Washington ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Washington
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $0 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Washington's main exclusions and may differ for income-tested credits.
Moving to Washington in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Washington come from (IRS migration data, 2022–2023).
- California to Washington
- Oregon to Washington
- Texas to Washington
- Arizona to Washington
- Florida to Washington
- Idaho to Washington
Frequently asked questions
Does Washington tax Social Security?
Not taxed. Washington has no state income tax. Washington does tax long-term capital gains (7% above a $278,000 standard deduction in 2025, plus a surcharge on very large gains), but Social Security and retirement-account withdrawals are not subject to it.
Does Washington tax pensions?
Not taxed. Washington has no state income tax.
Does Washington tax 401(k) and IRA withdrawals?
Not taxed. Washington has no state income tax.
Is Washington a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Washington charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: dor.wa.gov. Rules reviewed .