Washington State Retirement Taxes: 2026 Calculator
Washington has no income tax on Social Security, pensions or IRA withdrawals in 2026. Its 7% capital-gains tax exempts assets held in retirement accounts, and the 9.9% income tax that begins in 2028 applies only above a $1,000,000 standard deduction.
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Washington resident retirement worksheet
Washington · 2026 estimate
Waiting on a figure
- Cash after this state income tax
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ScopeConfirm residency and ordinary retirement category before a zero state result appears.
Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.
Washington: Current statute / agency guidance; annual forms must match the tax year. 2026 ordinary retirement-income scope; Eligible retirement account versus personal brokerage asset; Separate capital-gain, business or future-year calculation. This zero-income-tax result does not estimate total cost of living.
Reviewed October 6, 2026. Washington retirement accounts differ from taxable capital-gain assets
What Washington taxes in retirement
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Social Security
Not taxedNo 2026 income tax on benefits.
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Pensions
Not taxedOrdinary pension income has no 2026 state layer.
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IRA & 401(k) withdrawals
Not taxedRetirement-account assets are exempt from the capital-gains excise.
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Wages from work
Not taxedNo 2026 wage tax; an income tax is enacted from 2028.
Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.
Washington retirement tax figures and sources
| Rule | Washington figure | Effective | Primary source |
|---|---|---|---|
| Individual income tax (Social Security, pensions, IRAs, wages) | None in 2026 | Current law through December 31, 2027 | Washington DOR income tax page |
| Capital-gains excise tax | 7% of Washington long-term capital gains, plus 2.9% on the portion above $1,000,000 | 7% since 2022; the extra 2.9% since January 1, 2025 | RCW 82.87.040 |
| Capital-gains standard deduction | $278,000 for 2025 ($270,000 for 2024), per individual or married couple, indexed yearly | Tax years 2024 and 2025 | Washington DOR capital gains tax page |
| Assets in retirement accounts; real estate | Exempt from the capital-gains tax | Current DOR guidance | Washington DOR capital gains tax page |
| New income tax (ESSB 6346) | 9.90% of Washington taxable income after a $1,000,000 standard deduction (one deduction shared by spouses) | Begins January 1, 2028; first returns due April 2029 | Chapter 238, Laws of 2026 |
Worked example: what a single Washington retiree still owes
A single retiree aged 66 receives $30,000 of Social Security and a $45,000 pension. Washington takes nothing from either in 2026, so the only income tax is federal. The site’s federal worksheet gives:
| Provisional income ($45,000 + half of $30,000) | $60,000 |
|---|---|
| Taxable share of Social Security | $25,500 (the 85% ceiling) |
| Federal deductions: $16,100 standard + $2,050 age 65 + $6,000 senior deduction | −$24,150 |
| Federal taxable income | $46,350 |
| Federal tax (10% and 12% brackets) | $5,314 |
| Washington income tax | $0 |
The $6,000 senior deduction applies for 2025 through 2028 and phases out above $75,000 of modified AGI. Selling an appreciated brokerage holding is the separate case where Washington’s capital-gains tax can apply, and only above the standard deduction.
Federal figures: IRS Rev. Proc. 2025-32 (2026 deductions and brackets) · IRS: deduction for seniors · IRS Publication 915.
Washington retirement accounts differ from taxable capital-gain assets
Washington’s ordinary retirement-income state layer is zero in this 2026 worksheet; its separate capital-gains excise tax has account exemptions.
Washington Revenue’s capital-gains guidance exempts assets held in specified retirement accounts from that separate excise tax. Ordinary pension, Social Security and retirement-account distribution income should not be treated as a taxable sale in a nonretirement brokerage account simply because the household uses both for retirement spending. The zero-state mode is explicitly a 2026 ordinary-retirement calculation.
Keep the account registration and transaction records when reviewing an investment sale. A taxable brokerage asset and an asset held inside an eligible IRA or employer plan can have different Washington treatment. The fact that a person is retired does not exempt every capital gain outside retirement accounts, and the account exemption does not decide the federal taxable portion of a distribution.
For an illustrative Washington resident, a traditional IRA payout and a sale of an investment held personally require separate analysis. The federal retirement worksheet accepts prepared ordinary income and does not calculate special-rate capital gains. A separate Washington gains return, eligible deductions and credits must be prepared if the nonretirement transaction calls for it.
Future-year legislative provisions must be checked for their actual effective dates rather than applied to this 2026 estimate. Business activity and another state’s source income also need independent review. Use the prepared-liability mode when the comparison includes a verified state obligation outside ordinary retirement distributions. Preserve the same tax scope in both destination columns so a capital-gain excise amount is not silently mixed with another state’s pension-income estimate.
Washington’s enacted 2026 Senate Bill 6346 establishes an individual income tax beginning January 1, 2028. Section 201 gives a 9.90% rate on the law’s defined Washington taxable income, with the deduction and modification rules in the enacted act. This future tax does not apply to the displayed 2026 ordinary-retirement worksheet. A later-year assessment must review the actual effective law and retirement-income treatment rather than assume the current zero result continues forever. Capital gains outside protected retirement accounts remain a separate current tax category.
Prepare these Washington records
- 2026 ordinary retirement-income scope
- Eligible retirement account versus personal brokerage asset
- Separate capital-gain, business or future-year calculation
Official Washington source. Current statute / agency guidance; annual forms must match the tax year.
Calculate the federal portion separately
Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Washington rules above.
Compare Washington with nearby states
Idaho and Oregon are Washington’s only neighbors. Nevada is one state further away, chosen from those states for the treatment of Social Security, pensions, IRA withdrawals and wages closest to Washington’s. Alaska and Hawaii border no state and list Washington among their comparison states. Run each one’s worksheet with the same household figures before deciding where a move would leave you.
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Updated / verified · Retirement Income Tax Calculator Editorial Team