Seattle Income Tax: How Much Tax Do You Pay & All You Need

Seattle Income Tax

Seattle is one of several cities in Washington without a personal income tax, but that doesn’t make it a tax haven. While Washington residents avoid paying income taxes, they do pay some of the country’s highest sales taxes, with a combined state and local rate of 9.29%. Property taxes in the state are among the top 25 in the country, and the gas tax is the second-highest overall. 

But to help you understand more about the Seattle income tax rate, we have put together a couple of pieces of information that will help you get the hang of this. This article will give you insight into Seattle’s income tax rate and how it works. Sit tight!

How Much Is The Seattle Income Tax Rate?

Seattle is located in Washington State, and it has no income taxes. Over the years, the idea of enacting the Washington State income tax rate in 2023 has been floated in the state legislature and at the ballot box, but none of the proposed measures have passed. 

This means that once you’ve completed your federal tax return, you’re done for the year. Therefore, the Seattle income tax rate for an individual is zero (0).

What Is The Seattle Sales Tax?

The state’s high sales taxes are the inverse of its income tax-free status. The state’s standard sales tax is 6.5%. However, because cities and counties collect additional sales taxes on top of that rate, rates are usually at least 8%, and sometimes even higher.  

What Is Washington State’s Property Tax?

If you’re thinking about buying a home in Puget Sound or sunny Eastern Washington, you should consider the cost of local property taxes. In Washington, effective property tax rates (property taxes as a percentage of total home value) typically hover around 1%.

Also, effective rates range from 0.61% in San Juan County to 1.19% in Pierce County. Property taxes cost residents in the state an average of $3,601 per year. However, because home values in this area are high, the statewide effective property tax rate is only 0.93%, which is slightly lower than the national average of 1.07%.

In Washington, there is also a statewide tax on real estate sales. This tax, officially known as the real estate excise tax (REET), is equal to a percentage of the sale price of the home and is typically paid by the seller. Cities can also levy an additional 0.25% tax on property sales.

What Is The Estate Tax In Washington State?

The estate tax in Washington State ranges from 10% to 20%. This only applies to gross estates valued at more than $2,193,000. These rates apply to the taxable estate amount in Washington, which is almost certainly less than the actual gross estate.

What Is The Washington State Spirits Tax?

In Washington, there are two taxes on alcoholic beverages. The first is a 20.5% sales tax on retail sales and 13.7% on sales in restaurants and bars. The second is a volume tax known as the spirits liter tax, which is $3.7708 per liter (retail) or $2.4408 per liter (commercial) (restaurants and bars). 

Despite the Washington State income tax rate for 2023 being zero (0) when these taxes are added together, Washington has one of the highest liquor taxes in the country.

Does Seattle Have The Marijuana Tax?

Recreational marijuana became legal in Seattle, Washington in 2014. It’s also heavily taxed, with an excise tax of 37% of the purchase price. 

How Much Is 100k After Taxes In Seattle?

If you earn $100,000 per year and live in the Seattle, Washington region of the United States, you will be taxed $22,857. That means your annual net pay will be $77,143, or $6,429 per month. 

Your marginal tax rate is 31.7%, and your average tax rate is 22.9%. This marginal tax rate means that your additional income will be taxed at this rate right away. 

For example, a $100 increase in salary will be taxed at $31.68, resulting in a net pay increase of only $68.32. 

How Much Is 70k A Year After Taxes In Seattle?

If you earn $70,000 per year and live in the Seattle, Washington region of the United States, you will be taxed $13,831. That means your annual net pay will be $56,169, or $4,681 per month. 

Your marginal tax rate is 30.1%, and your average tax rate is 19.8%. 

For example, a $100 increase in salary will be taxed at a rate of $30.09, resulting in a net pay increase of only $69.91.  

Why Is The Seattle Income Tax Rate Zero?

There is no personal income tax in Washington; therefore, the Seattle income tax rate is zero. However, the state has some of the highest sales taxes in the country. When compared to other states, Washington’s property taxes rank in the middle. 

What Is A Good Salary In Seattle?

Anything over $65,000 is considered a good salary in Seattle, WA, even with the Seattle Income tax rate being zero. This is since the median income in Seattle is $65,000. This means that if you earn more than that, you are earning more than 50% of the people in Seattle. 

In Seattle, the average salary is $75,725 and a good hourly wage is $31.25. That translates to a good weekly wage of $1,250 and a good monthly wage of $5,416. However, using the median income is only one method for determining a good salary in Seattle.

Another way to calculate a good salary in Seattle despite the Seattle income tax rate being zero is to look at the cost of housing and multiply it by your salary. 

Experts agree that you should keep your home price-to-income ratio around 5 to 1. A good salary in Seattle would be $132,620 based on the median home price of $663,100.

Also, we can determine a good salary in Seattle by looking at the cost of living and comparing it to the average salary in the United States. Seattle’s cost of living is 56% higher than the national average. The national average salary is $56,310, so anything over $87,843 is considered a good salary in Seattle.

What Is The Difference Between Seattle’s Income Tax Rate And California Income Tax Rate?

In California, state income taxes range from 1% (on taxable income of up to $9,325 for single filers and up to $18,650 for joint filers) to 13.3% (on taxable income of more than $1 million for single filers; more than $1,250,738 for joint filers).

The average rate of State and Local Sales Tax is 8.82% while the property tax rate is $742 per $100,000 of assessed home value, on average.

The California income tax rate is low, especially for working-class families. If you are wealthy, California income taxes will significantly reduce your earnings. However, for others, the California income tax increase isn’t all that bad.

The California income tax bill for our hypothetical middle-class family was the second-lowest among states that impose an income tax. Everyone talks about the 13.3% California income tax rate, which is the highest in the country, but only a small percentage of California residents pay that rate. 

The California income tax rate system is very progressive, with ten different tax rates. For example, a middle-income family only qualifies for the state’s 6% tax bracket. That isn’t too bad.

Read Also: HOW DO PROPERTY TAXES WORK: How To Calculate Them & What They Are

Although property taxes are extremely high in Silicon Valley and other parts of the state, they are lower than the state average. The statewide estimated property tax for a $300,000 home in California is only $2,226, which ranks 16th in the country.

Californians may pay more in sales tax than residents of other states. The state sales tax rate in California is 7.25%, the highest in the country. Local sales taxes, however, are relatively low (up to 2.5%). 

According to the Tax Foundation, the average combined state and local rate is 8.828%, which is high.

In Seattle, Washington, the State Income Tax Rate is zero and the average combined State and Local Sales Tax is 9.29%. The property tax rate in the middle is $958 per $100,000 of assessed home value.

Seattle sales taxes are quite high. The state sales tax rate is 6.5%, which is significantly higher than the national average. Furthermore, Seattle has the fourth-highest average combined state and local sales tax rate in the country, at 9.29%, according to the Tax Foundation.

Seattle, Washington’s property taxes are lower. The median property tax bill in the state for a $300,000 home is about $2,874 per year. When compared to other states, this is in the middle of the pack. 

Conclusion 

The Washington state income tax rate for 2023 is said to be zero. And because Seattle is a city in Washington, this also applies to it. Although the city has zero income tax, it has other high taxes attached to it. 

Hopefully, this guide gives you the full information you might need concerning the Seattle, Washington, income tax rate for 2023.

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