Seattle tax brackets, in the income-tax sense most people mean, do not exist: neither Washington State nor the City of Seattle taxes personal income, so there are no state or local wage brackets to look up. The only graduated rate schedule that touches a Seattle paycheck is the federal one. A few other Washington taxes do use tiered rates that function like brackets, and those are the ones worth knowing if you sell stock, sell a home, or leave behind an estate.
No State or Local Income Tax in Seattle
Washington law prohibits any county or city from taxing net income.1Washington State Legislature. Washington Code 36.65.030 – Tax on Net Income Prohibited Wages, salary, freelance earnings, and business profits reach you without any state or local income withholding. Compared with a job offer in California or New York, that absence can be worth thousands a year, though sales and property taxes recover part of the difference.
Federal Income Tax Brackets for 2026
Federal income tax is the only bracketed tax on your earnings. The IRS applies seven progressive rates in 2026, and only the income falling inside each range is taxed at that range’s rate.2IRS. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- 10%: up to $12,400 (single) or $24,800 (joint)
- 12%: $12,401–$50,400 (single) or $24,801–$100,800 (joint)
- 22%: $50,401–$105,700 (single) or $100,801–$211,400 (joint)
- 24%: $105,701–$201,775 (single) or $211,401–$403,550 (joint)
- 32%: $201,776–$256,225 (single) or $403,551–$512,450 (joint)
- 35%: $256,226–$640,600 (single) or $512,451–$768,700 (joint)
- 37%: over $640,600 (single) or over $768,700 (joint)
Before those rates hit, you subtract the standard deduction: $16,100 for single filers or $32,200 for married couples filing jointly in 2026.2IRS. IRS Releases Tax Inflation Adjustments for Tax Year 2026 A single Seattle resident earning $90,000 does not pay 22% on the whole amount. Only the slice inside the 22% band is taxed at 22%, which is why the effective rate always lands below the top marginal rate.
Washington Capital Gains Tax Tiers
The state’s capital gains tax is the closest thing Washington has to a bracketed income levy. It applies to long-term gains on assets like stocks, bonds, and business interests once your taxable gains clear an annual inflation-adjusted threshold. The current threshold is posted on the Department of Revenue’s capital gains page.3Washington Department of Revenue. Capital Gains Tax
Beginning with tax year 2025 and continuing into 2026, the state uses two tiers:4Washington Department of Revenue. New Tiered Rates for Washingtons Capital Gains Tax
- 7% on the first $1 million of taxable Washington capital gains
- 9.9% on taxable gains above $1 million
Someone selling $3 million in qualifying stock pays 7% on the first $1 million and 9.9% on the remaining $2 million. Before the tiered rates took effect, everything above the threshold was taxed at a flat 7%.
Several major asset categories are exempt entirely: real estate, distributions from retirement accounts, depreciable business assets, livestock tied to farming, timber and timberland, and commercial fishing privileges. The real estate exemption matters in Seattle: selling your home or a rental property does not trigger this tax regardless of the gain. The return is due to the Department of Revenue on the federal filing deadline, and a federal extension does not extend the Washington payment deadline.3Washington Department of Revenue. Capital Gains Tax
Real Estate Excise Tax Brackets
When property changes hands in Seattle, the seller pays real estate excise tax on the sale price. The state portion is graduated:5Washington Department of Revenue. Real Estate Excise Tax
- 1.10% on the portion of the price up to $525,000
- 1.28% on the portion from $525,001 to $1,525,000
- 2.75% on the portion from $1,525,001 to $3,025,000
- 3.00% on anything above $3,025,000
Seattle adds a local REET on top of the state rate. On a $900,000 sale, the state tax is 1.10% of the first $525,000 plus 1.28% of the next $375,000, before the local portion. Agricultural land and timberland are taxed at a flat 1.28% regardless of sale price.5Washington Department of Revenue. Real Estate Excise Tax
Washington Estate Tax Brackets
Washington imposes its own estate tax in addition to the federal one, and this is where Seattle homeowners are most often surprised. For deaths in 2026, estates with a gross value of $3,076,000 or more must file a return with the Department of Revenue.6Washington Department of Revenue. Estate Tax Tables The filing trigger is gross value before debts and expenses, so an estate that nets less can still be required to file.
The graduated rates apply to the taxable estate (gross value minus deductions and the $3,076,000 exclusion):6Washington Department of Revenue. Estate Tax Tables
- 10% on the first $1,000,000
- 15% from $1,000,001 to $2,000,000
- 17% from $2,000,001 to $3,000,000
- 19% from $3,000,001 to $4,000,000
- 23% from $4,000,001 to $6,000,000
- 26% from $6,000,001 to $7,000,000
- 30% from $7,000,001 to $9,000,000
- 35% above $9,000,000
The $3,076,000 exclusion is much lower than the federal estate tax exemption. A Seattle homeowner with a paid-off house and moderate retirement accounts can approach the threshold without realizing it, and families who feel safe based on the federal number sometimes miss the state bill.
Other Seattle Taxes Without Brackets
Several of Seattle’s biggest tax bills are flat or formula-based rather than bracketed, but they are what a resident actually feels.
Sales and Use Tax
The combined sales tax rate in Seattle is 10.25%, made up of the 6.5% state portion plus King County and city add-ons. Most unprepared grocery items are exempt, so bread, produce, meat, and dairy leave the store tax-free.7Washington Department of Revenue. Retail Sales Tax Prepared food, soft drinks, and dietary supplements are taxed; prescription drugs are exempt.8Washington State Legislature. Washington Code 82.08.0281 – Exemptions, Drugs Dispensed Pursuant to Prescription
Property Tax
Property tax is based on assessed value set by the King County Assessor, not on brackets. The total rate is the sum of levies from the city, county, school districts, the Port of Seattle, and voter-approved measures. Payments split into two installments, due April 30 and October 31.9King County. 2026 Property Taxes Delinquent taxes on residential property with four or fewer units accrue 9% annual interest; all other property accrues 12% interest plus penalties of 3% on June 1 and 8% on December 1.10Washington Department of Revenue. Legislative Changes to Delinquent Property Taxes
Seattle Business and Occupation Tax
Seattle’s B&O tax is charged on gross receipts, not profit. Starting January 1, 2026, Proposition 2 raises the liability threshold from $100,000 to $2 million in annual taxable revenue, and businesses above the line get a standard $2 million deduction.11City of Seattle. Seattle Shield Business and Occupation B&O Tax Changes Rates for 2026 through 2032 run 0.342% for retail, wholesale, manufacturing, and publishing, and 0.658% for services, freight, and other classifications. Because it applies to top-line revenue, a business operating at a loss can still owe B&O.
JumpStart Seattle Payroll Expense Tax
The JumpStart payroll expense tax is paid by large employers, not withheld from workers. For 2026, it applies to businesses whose prior-year Seattle payroll reached at least $9,074,409 and who pay at least one employee $194,452 or more during the year. Rates range from 0.746% to 2.557% depending on the employer’s total payroll size and how much each covered employee earns, with the top rate reserved for the largest companies paying individual employees above $518,538. Employees earning below $194,452 are not taxed under any tier. Returns are quarterly, first due April 30.12City of Seattle. Payroll Expense Tax