The short version
- Social Security taxed?
- No
- Income tax
- No income tax
- Property tax on a $300,000 home
- ≈ $2,250 / yr ($188 / mo)
- Everyday cost index (U.S. = 100)
- 114
- January / July high
- 47°F / 76°F
- Sales tax (state + local avg)
- 9.57%
Retiring in Washington
No income tax and mild summers with superb Seattle healthcare. Watch out: the third-highest sales tax in the nation and expensive housing near Puget Sound.
How Washington taxes your retirement income
Social Security: not taxed at all.
Pensions: No state income tax on wages or retirement income.
401(k) and IRA withdrawals: No state income tax (a 7% capital gains tax applies only to very large gains).
The setup: No income tax.
Property tax & senior breaks
The average effective property tax rate is about 0.75% — roughly $2,250 a year ($188 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Property tax exemption and deferral for homeowners 61+ with modest income.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 14% above the U.S. average. The combined state and average local sales tax is 9.57%.
Weather
January days top out around 47°F and July days around 76°F, with roughly 152 sunny days a year. Watch out for: Rainy gray winters in the west; wildfire smoke in the east; earthquake risk.
Healthcare
Excellent Seattle care (UW Medicine); rural eastern access has gaps.
Estate & inheritance taxes
Washington has an estate tax. Estate tax above about a $3 million exemption