Average Salary in Washington (WA)

Washington has no state income tax on wages, but it became one of the first US states to impose a capital-gains tax (7% on gains over $262,000 per year as of 2024), a novel structure that was upheld by the state supreme court in 2023. The $90,325 median household income ranks in the top ten, driven primarily by the tech cluster anchored by Microsoft in Redmond, Amazon in Seattle (Amazon is the state's largest private employer by headcount), and the dense supplier ecosystem around those two companies. Boeing remains one of the largest single-site manufacturing employers in the state (Everett and Renton). Outside of King County, the economy is very different: agriculture dominates eastern Washington (apples, wheat, wine), the Tri-Cities region has a major federal-research footprint (Hanford, Pacific Northwest National Laboratory), and the Puget Sound naval bases provide significant military employment. The cost-of-living index of 114 is driven overwhelmingly by Seattle-area housing. The $16.66/hour minimum wage is the highest state minimum wage in the country (Seattle's local minimum is even higher, above $20 for large employers). Property taxes are moderate. Full breakdown follows.