# Retirement Taxes in Washington (2026) > Does Washington tax Social Security, pensions or 401(k) withdrawals? The 2026 rules, rates, and what the state tax actually costs a retiree. Source: https://savingslast.com/retirement-taxes-in-washington/ Markdown: https://savingslast.com/retirement-taxes-in-washington.md Site: SavingsLast, free retirement drawdown calculators. Educational estimates, not advice. **Very tax-friendly.** Washington has no state income tax, so Social Security, pensions and every dollar you withdraw from a 401(k) or IRA arrive untaxed at state level. *Interactive calculator on the page: https://savingslast.com/retirement-taxes-in-washington/. The same engine is the MCP tool how_long_will_money_last at https://savingslast.com/mcp.* Seeded with roughly 10% — about 10% effective federal plus 0%, the Washington tax on $40,000 of IRA withdrawals at 65 under 2026 rules. Change it to your own rate. ## What Washington taxes in retirement | State income tax | None on ordinary income; a 7% tax, 9.9% above $1 million, applies to large long-term capital gains | | --- | --- | | Social Security | Not taxed | | 401(k) and IRA withdrawals | Not taxed — the capital gains tax does not apply to retirement account withdrawals | | Pensions | Not taxed | | Military retirement pay | Not taxed | | Estate or inheritance tax | Estate tax, $3 million exemption and a 35% top rate, the highest of any state | | Average combined sales tax | 9.51% | | Average effective property tax | 0.75% of home value | Washington has no income tax on withdrawals, but it has an estate tax that starts at $3 million with the steepest top rate in the country. For a retiree spending down a portfolio it is cheap; for one planning to leave a large estate it is not. ## What the state tax actually costs you Nothing. On a $500,000 balance withdrawn at $2,500 a month, federal tax alone brings the money down to about **18.8 years**, and Washington adds none of its own. Every dollar of state tax a retiree avoids is a dollar that stays invested and compounds, which is why the difference between states widens over a long retirement rather than staying flat. ## The taxes that are not income tax Retirees feel sales and property tax more than working-age households do, because a larger share of a fixed income goes on spending and on staying in a house that is already owned. Washington charges an average combined sales tax of about **9.51%** and levies an average effective property tax of about **0.75%** of a home's value, which is close to the national average. On death: estate tax, $3 million exemption and a 35% top rate, the highest of any state. State thresholds are frequently far below the federal exemption, so an estate that owes nothing federally can still owe here — a house plus a retirement portfolio is often enough to cross the line. ## How long $500,000 lasts here Take a single 67-year-old with $500,000 in an IRA, the average Social Security check and $4,000 a month of spending. In Washington that money runs out at 94, the same as in a state with no income tax. Counting Washington's prices as well, it runs out at 88 and 11 months. [How long $500,000 lasts in every state](https://savingslast.com/how-long-500k-lasts-in-every-state/) compares all 51. ## Should you move for the tax? Compare the whole burden rather than one line of it. States without an income tax raise the money elsewhere — Texas and New Hampshire through property tax, Tennessee and Washington through sales tax — so the saving is often smaller than the headline suggests. Run your own numbers in the calculator above, then look at what the same house costs in each state, what insurance costs, and how far you would be from family and from the specialists you already use. Establishing residency is also a formal exercise, not a preference: high-tax states audit departing retirees on days present, driver's licence, voter registration, where the primary home is, and where a doctor and a dentist are. Half-measures lose. ## Frequently asked questions **Does Washington tax Social Security benefits?** Not taxed. Your benefit may still be taxable federally once provisional income crosses the limits — see [is Social Security taxable](https://savingslast.com/is-social-security-taxable/). **Does Washington tax 401(k) and IRA withdrawals?** Not taxed — the capital gains tax does not apply to retirement account withdrawals. Pensions are treated separately — Not taxed. **Does Washington tax military retirement?** Not taxed. See [which states do not tax military retirement](https://savingslast.com/which-states-dont-tax-military-retirement/). **Is Washington a good state to retire in for taxes?** Very tax-friendly on income tax. There is no state income tax at all, so withdrawals, pensions and Social Security are untouched. Average combined sales tax is about 9.51% and effective property tax about 0.75% of home value. Estate or inheritance tax: estate tax, $3 million exemption and a 35% top rate, the highest of any state. **Does Washington have an estate or inheritance tax?** Estate tax, $3 million exemption and a 35% top rate, the highest of any state. This is separate from the federal estate tax and often has a much lower threshold, so it can reach estates that owe nothing federally. ## Other tax-friendly states - [Alaska](https://savingslast.com/retirement-taxes-in-alaska/) - [Colorado](https://savingslast.com/retirement-taxes-in-colorado/) - [Connecticut](https://savingslast.com/retirement-taxes-in-connecticut/) - [Florida](https://savingslast.com/retirement-taxes-in-florida/) - [Georgia](https://savingslast.com/retirement-taxes-in-georgia/) - [Illinois](https://savingslast.com/retirement-taxes-in-illinois/) ## Compare and calculate - [All 51 states compared](https://savingslast.com/retirement-taxes-by-state/) - [States that tax Social Security](https://savingslast.com/social-security-taxes-by-state/) - [Is Social Security taxable?](https://savingslast.com/is-social-security-taxable/) - [Retirement withdrawal calculator](https://savingslast.com/retirement-withdrawal-calculator/) - [How long $500k lasts](https://savingslast.com/how-long-will-500k-last-in-retirement/) - [How much do I need to retire?](https://savingslast.com/how-much-do-i-need-to-retire-with-social-security/) SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions. Reviewed for the 2026 tax year. Several states are part-way through scheduled rate cuts or phase-outs, and thresholds are often indexed annually — confirm current figures with the Washington tax agency (listed at [taxadmin.org](https://taxadmin.org/state-tax-agencies/)) or a tax professional before acting. The effective rate is a planning figure, not a filing figure.