No income tax in Washington State

Washington State does not have a personal or corporate income tax. However, persons that engage in business in Washington are subject to business and occupation and/or public utility tax. These taxes are based on gross receipts of the business.

To find federal income tax information, visit the Internal Revenue Service (IRS) web site.

Washington State Taxpayers May Deduct Sales Tax in 2012 and 2013

Washington State residents may deduct state and local general-sales tax on their federal income returns for tax year 2012. The sales tax deduction was extended again in legislation signed by President Obama on January 2, 2013.

The deduction is available to taxpayers that itemize deductions, not those who take the standard deduction. The deduction is based on adjusted gross income and number of exemptions claimed. Taxpayers who keep all their receipts can deduct actual sales tax and use tax paid. For taxpayers who didn't keep receipts, the IRS has an online Sales Tax Deduction Calculator to determine the amount of optional general sales tax to claim, or taxpayers can use the Optional State Sales Tax Tables.