What You Need to Know About Washington State Taxes for 2017

Washington State Tax Changes 2017

Washington State

Washington State has made many “best” lists for taxes: the state sales tax is about average (although local sales tax may vary), and there is no state income tax. Are there any major tax changes you should know about moving into 2017? Well, it depends upon where you live. The good news is that there are no statewide changes to sales or property taxes; more on the state’s estate tax below. However, there are some small increases for local communities, which we’ve outlined below. Spoiler alert for residents of Washington’s larger cities: there are no tax changes on the docket for Seattle or Spokane in 2017.

Transportation Benefit District

Effective as of late 2016 the cities of Centralia, Ellensburg, Enumclaw, Othello, Mattawa, Shelton, Tacoma, and Twisp have all established a Transportation Benefit District, which increases local sales and use taxes by a small percentage in order to fund transportation services.

Local sales tax changes for car dealers and leasing companies

Grays Harbor, Mill Creek, Monroe, Shelton, and Twisp have all instated tax changes for local sales tax on motor vehicle sales and leasing. However the tax uses (Grays Harbor, for example, is using the funding for “criminal justice and public safety purposes”) and rates vary across regions.

Other increases

In addition to using the above taxes for public safety, Grays Harbor is also enacted a dedicated Public Safety Tax effective January 1st 2017.

Estate taxes

While there is no formal increase in the state’s estate tax per se, Washington state does adjust annually for inflation. Accordingly you can expect an increase in the estate tax in 2017.

Is your hometown listed above and are you curious about the specifics of the increase? Check the Washington State Department of Revenue’s website for a comprehensive overview of the tax changes for 2017.

Image credit: Tim Durkan

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