A competitive tax rate.
Through tax incentives, deferrals, credits and offsets targeted to specific high growth industries, Washington State offers highly successful businesses a competitive advantage few states can offer.
Washington does not have a corporate income tax. Instead, a Business & Occupation (B&O) tax is calculated on the gross income from activities. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business. The more profitable a company becomes, the more profits it keeps since the rate is based on gross, not net income.
The state’s overall taxation is relatively low compared to other states:
|Unemployment Insurance||.6 – 5.84%||0 – 15.09%|
|Worker’s Comp Index Rate||2.11%||1.01 – 3.01%|
|Corporate Income Tax||0||15 – 35%|
|Sales Tax||6.5%||0 – 7.5%|
|Average Property Tax (as % of income)||2.91%|