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.
Federal sales tax deduction for tax year 2017
Filing information for 2017 tax year
Washington State residents may continue to itemize and deduct sales tax on their 2017 federal income tax returns. Washington residents who qualify to itemize their deductions on Form 1040, Schedule A can take this deduction. (This does not apply to those who take the standard deduction.)
For residents who did not keep receipts, the IRS provides an online Sales Tax Deduction Calculator to determine the amount of optional general sales tax you can claim, or residents can use the Optional State Sales Tax Tables. Residents who keep all their receipts can deduct actual sales tax and use tax paid during the tax year.
For tax years 2018 to 2025
As part of major tax law put into place during 2017, the law limits a deduction to $10,000 ($5,000 in the case of a married individual filing a separate return) for all state and local taxes. Generally, these are real and personal property taxes and sales and use taxes. This limitation expires on December 31, 2025.
(H.R. 1, Tax Cuts and Jobs Act of 2017).
For information about the federal income tax deductions, please visit the IRS website.