Washington Paycheck Calculator - SmartAsset (2023)

FAQs

How do you figure out what my paycheck will be? ›

How do I complete a paycheck calculation? To calculate a paycheck start with the annual salary amount and divide by the number of pay periods in the year. This number is the gross pay per pay period. Subtract any deductions and payroll taxes from the gross pay to get net pay.

Washington Income Tax Calculator 2021

Your average tax rate is 11.98% and your marginal tax rate is 22%.

If you make $120,000 a year living in the region of Washington, USA, you will be taxed $29,235. That means that your net pay will be $90,765 per year, or $7,564 per month. Your average tax rate is 24.4% and your marginal tax rate is 32.1%.

6.2% of each of your paychecks is withheld for Social Security taxes and your employer contributes a further 6.2%. However, the 6.2% that you pay only applies to income up to the Social Security tax cap, which for 2022 is $147,000 (up from $142,800 in 2021).

At present, seven states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming—levy no state income tax at all.1 Washington state levies an income tax on investment income and capital gains, but it is only for certain high earners.

Washington has a 6.50 percent state sales rate, a max local sales tax rate of 4.00 percent, and an average combined state and local sales tax rate of 9.29 percent. Washington's tax system ranks 15th overall on our 2022 State Business Tax Climate Index.

Sales taxes in Washington are pretty high. The state sales tax rate is 6.5%, which is well above average. Plus, at 9.29%, the Tax Foundation's average combined state and local sales tax rate for Washington is the fourth-highest in the country.

Washington relies on the sales tax, the business and occupation (B&O) tax, and property tax. Unlike most states, Washington does not have either a personal or corporate net income tax. The following chart shows the general fund share of each major tax source.

Paycheck calculator

A yearly salary of $120,000 is $10,000 a month. This number is based on 40 hours of work per week and assuming it's a full-time job (8 hours per day) with vacation time paid. If you get paid biweekly your gross paycheck will be $4,615.

The total sales tax rate in Seattle is 8.8%, with the exception of a 9.3% rate that applies to food and beverages purchased in restaurants and bars. The extra 0.5% is used to pay for construction of the baseball stadium.

Does Washington tax Social Security? ›

Washington State has no income tax. That means income from Social Security, pensions and retirement accounts is all tax-free in Washington.

For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2022, up $400, and for heads of households, the standard deduction will be $19,400 for tax year 2022, up $600.

Divide the biweekly pay by the number of regular hours worked to calculate the regular hourly rate. For example, if your biweekly gross pay is $1,600 and you work a regular 40-hour workweek, your hourly rate is $20 [$1,600 / (40 x 2) = $1,600/80 = $20].

If You're Paid Weekly

How to calculate monthly income from a weekly paycheck? Again, multiply the number of paychecks you receive in a month by your hourly wage. Then, multiply that amount by 52 (weeks in a year) and divide by 12 (months in a year).

By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.

Claiming 0 on Your Taxes

When you claim 0 on your taxes, you have the largest amount withheld from your paycheck for federal taxes. If your goal is to receive a larger tax refund, then it will be your best option to claim 0. Typically, those who opt for 0 want a lump sum to use as they wish, like: Pay bills.

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

What are the tax advantages of living in Washington state? ›

Tax Benefits of Living in Washington State

Washington has no state income tax, which allows residents to get more and save more from each paycheck. This is also one of the few states in the United States that does not have a personal or corporate income tax.

Due to the inadequacy of its sales-based tax system, Washington is a low-tax state. Enacted in 1993, Initiative 601 required a two-thirds vote of the Legislature to raise taxes. For 20 years, the supermajority rule thwarted tax increases that could have counteracted the inadequacy of the Washington tax system.

Washington has a super low crime rate, beating the vast majority of the rest of the US in police statistics, making it one of the safest places to live in the country. The weather, although rainy, is mostly temperate throughout the year, especially towards the western side of the state.

Washington State is a better retirement destination if you'd like to spend your golden years in a fast-paced city. The beautiful mountain scenery is a plus. Oregon might be better for you if you'd like to explore multiple outdoor activities such as biking, skiing, golf, and fishing.

Oregon is 7.8% cheaper than Washington.

Washington has evolved from a primarily property-tax state to an excise-tax state and is one of only four states with no form of income tax. Voters overwhelmingly approved an income tax in 1932, but the courts declared it unconstitutional, and several attempts since to pass an income tax have failed.

Minimum Wage. The 2022 Minimum Wage in the state of Washington is $14.49 per hour. Washington employers must pay most employees at least the minimum wage for every hour worked. As of January 1, 2023 the minimum wage will increase to $15.74 per hour.

Washington's retail sales tax is made up of the state rate (6.5 percent) and the local sale tax rate. Local rates vary depending on the location. The sales tax rate for items delivered to the customer at the store location (over the counter sales) is based on the store location.

What is Seattle tax rate? ›

The total sales tax rate in Seattle is 8.8%, with the exception of a 9.3% rate that applies to food and beverages purchased in restaurants and bars. The extra 0.5% is used to pay for construction of the baseball stadium.

Washington does not use a state withholding form because there is no personal income tax in Washington.

In 2023, the minimum wage rate in Washington state will increase to $15.74 per hour for employees 16 years of age and older, the Washington State Department of Labor & Industries announced on Sept. 30. This represents an increase of $1.25 per hour, or an 8.66 percent increase year over year.

The federal minimum wage is $7.25, but do you know the states that have higher or lower minimums? Answer: Highest: District of Columbia at $15.20/hour, California at $15/hour. Lowest: Georgia and Wyoming at $5.15/hour ** (only applies to some farm and seasonal workers)

Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour. In all seven of these states, the federal minimum wage of $7.25 per hour applies.

Bottom Line. The Evergreen State is one of nine states with no personal income tax. However, sales taxes in Washington are extremely high. At 9.29%, the state's combined state and local sales tax rate is the 4th-highest in the nation.

Washington law exempts most grocery type food from retail sales tax. However, the law does not exempt “prepared food,” “soft drinks,” or “dietary supplements.” Businesses that sell these “foods” must collect sales tax. In addition, all alcoholic items are subject to retail sales tax.

There is only one state with a sales tax over 7%, which is California, and is also the state with the largest population. There are six states with sales tax under 4%. Colorado has a sales tax of 2.9%. The other five, Oregon, New Hampshire, Montana, Delaware, Alaska, have state sales taxes of 0%.

Oregon is 7.8% cheaper than Washington.

Seattle's housing expenses are 109% higher than the national average and the utility prices are 8% higher than the national average. Transportation expenses like bus fares and gas prices are 35% higher than the national average. Seattle has grocery prices that are 30% higher than the national average.

Does Seattle have high taxes? ›

What is the sales tax rate in Seattle, Washington? The minimum combined 2022 sales tax rate for Seattle, Washington is 10.25%. This is the total of state, county and city sales tax rates. The Washington sales tax rate is currently 6.5%.

Sales taxes in Washington are pretty high. The state sales tax rate is 6.5%, which is well above average. Plus, at 9.29%, the Tax Foundation's average combined state and local sales tax rate for Washington is the fourth-highest in the country.

Washington relies on the sales tax, the business and occupation (B&O) tax, and property tax. Unlike most states, Washington does not have either a personal or corporate net income tax.

No income tax in Washington state

Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (B&O) and/or public utility tax.