Politics & Government
How Much Washington Taxes Its Residents Compared To Other States
The Tax Foundation issued the new report "Facts & Figures 2023: How Does Your State Compare."
As the sayings go, taxes are one of the few certainties in life, and the annual ritual of filling them with the IRS is not one that many people look forward to. The average American paid $10,845 in federal income taxes alone in 2020. But, while everyone is subject to the same federal tax laws, states also have the authority to set their own tax policy, and exactly how much you end up paying depends largely on where you live.
To raise revenue, state governments levy a broad range of taxes. These typically include taxes on property, income, and sales, and they vary considerably by state. In fact, in some parts of the country, residents are exempt from paying one or more of these tax categories altogether.
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According to the Tax Foundation, an independent, nonprofit, tax policy research organization, state tax collections in 2021 totaled $4,214 per capita in Washington, the 12th highest among states.
The overall tax burden in Washington, which is a measure of taxes paid as a share of annual income, was 5.7% of the state’s income per capita of $73,775. For comparison, the per capita state income tax burden nationwide stands at 6.0%.
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All data in this story is from the Tax Foundation report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, nonprofit, tax policy research organization. Figures do not include taxes levied at the local or federal level.
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This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.