Washington tax forms & filing.

Things to know about filing in Washington

• Washington has no wage income tax. The state's capital gains tax applies a flat rate to long-term capital gains above an annual threshold — affecting a small minority of high-income filers, typically equity-comp recipients and business sellers.
• Washington's capital gains tax has carve-outs for certain assets (real estate, retirement accounts, family-business sales below thresholds) — the return is genuinely complex and requires careful documentation.
• Washington has no state corporate income tax, but it does levy a Business & Occupation (B&O) Tax on business gross receipts. This affects self-employed Washington residents and is the biggest compliance surprise for new Washington business owners.
• Washington has no state estate or inheritance tax at the state level — federal estate tax only. (Note: Washington has its own state estate tax with a threshold below the federal threshold — federal-only is the simpler statement, but check at intake for high-net-worth estates.)

Washington capital gains tax — who owes it and how it's calculated

Washington enacted a state capital gains tax that applies a flat percentage rate to long-term capital gains above an annual threshold. The tax was challenged in court and upheld by the Washington Supreme Court. It's now an established feature of the Washington tax landscape — and most affected filers don't realize they owe it until a notice arrives.

The tax applies to long-term capital gains from sales of stocks, bonds, and other intangible assets. Real estate gains are exempt. Retirement-account distributions are exempt. Family business sales below a defined revenue threshold are exempt. Charitable contributions and certain small-business deductions reduce the tax base.

Most-common trigger: a Washington resident who exercises ISOs at a multi-million-dollar gain or sells equity in a startup. Pre-IPO Washington founders in particular need to model the WA capital gains tax exposure pre-exit. We handle the WA capital gains return (DOR Form WA-CG) alongside the federal return as part of the engagement.

Washington B&O Tax — the surprise for self-employed Washington residents

Washington's Business & Occupation (B&O) Tax is the state's primary business tax — and it's a tax on gross receipts, not net income. Self-employed Washington residents (consultants, freelancers, contractors, single-member LLCs) typically owe B&O on their business gross revenue, separate from any income tax (which Washington doesn't have for wages).

Rates vary by activity classification (service businesses pay a different rate than retail, manufacturing, etc.), and there's a small-business credit that reduces or eliminates B&O for businesses below revenue thresholds. The credit is calculated on the B&O return — but you still need to file even when the credit zeroes out the tax owed.

Filing happens through the Washington Department of Revenue's online MyDOR portal on a monthly, quarterly, or annual cadence based on your business volume. Most small Washington businesses file annually. This is separate from the federal return and isn't handled by individual income tax software.

Refund status

Washington does not have an individual income tax refund tracker because there is no individual income tax return. For your federal refund, use the IRS Where's My Refund tool.

Multi-state considerations

If you lived or worked in more than one state during the tax year, you typically file a part-year resident return in each state. If you live in one state and work in another, you usually file as a resident where you live and as a nonresident in the work state — claiming a credit on the resident return for taxes paid to the work state. Reciprocity agreements between some neighboring states change this default; we map this out at intake.

Washington-specific multi-state nuances are addressed in the quirks list above when they apply.

Get the current-year forms

State tax rates, brackets, and forms change every year. We point to the Washington Department of Revenue as the authoritative source for current-year information. Form numbers above are stable; rates, deduction amounts, and credit limits are not — always verify before relying on a specific dollar amount.

Open the Washington Department of Revenue website →