Washington variant. This is a Washington-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Washington, that means a top rate of 0% on gains - except there is no state income tax, so realized gains face only federal tax.
Capital gains tax in Washington
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Washington adds no state tax on those gains.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Washington
Washington levies no tax on wage income but does impose a tax on certain long-term capital gains above a high threshold.
Washington's effective property tax rate is near 0.84%, with median home values among the highest in the country around $615,000.
Washington's economy is powered by technology, aerospace, and global trade, with major employers based in the Seattle area.
Worked example: $50,000 long-term gain
A $50,000 long-term gain in Washington owes only federal tax (e.g., $7,500 at the 15% bracket) - Washington adds $0.
Quick reference
- State income tax: No state income tax (7% capital gains tax over $250K)
- State sales tax: 6.5% (plus 2.79% avg local)
- Median home value: $615,000
- Median household income: $90,325
- Effective property tax rate: 0.84%
- Avg auto insurance: $1,366/yr
Frequently Asked Questions
Does Washington tax capital gains?
Washington has no state income tax, so realized gains face only federal tax.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.