Washington Capital Gains Tax
Washington levies no state income tax, so capital gains are not taxed at the state level in Washington. Whether you sell shares, a second property or other investments, there is no Washington state capital gains tax to pay. Federal capital gains tax still applies: the IRS taxes long-term gains (assets held over a year) at preferential rates and short-term gains at ordinary income rates. This page confirms, from the Washington State Department of Revenue, that Washington has no state income tax and therefore no state capital gains tax, and links the federal capital gains calculator and the Washington sales and property tax pages so you can see your full tax position.
Washington has no state income tax, so there is no Washington capital gains tax. Federal capital gains tax still applies.
How Washington taxes capital gains
Washington has no state income tax, so capital gains are not taxed at the state level.
Washington capital gains tax: frequently asked questions
Does Washington tax capital gains?
No. Washington levies no state income tax, so capital gains are not taxed at the state level. Federal capital gains tax still applies; see the IRS for federal long-term and short-term rates.
Official sources
- Washington no income tax confirmation: Washington State Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Washington State Department of Revenue.