No Income Tax, but Two Premiums
Washington does not tax wages. The state does fund two insurance programs through employee payroll deductions, and both show on every stub.
| Premium | Employee rate | Wage limit |
|---|---|---|
| WA Cares Fund | 0.58% | None, all wages |
| Paid Family and Medical Leave | 0.807% | Up to $184,500 |
WA Cares Fund
WA Cares is a long term care benefit. Employees pay 0.58% of gross wages, with no cap, so a raise always adds to the premium.
The program pays a lifetime benefit toward care services for people who need help with daily tasks, once they have paid in for the required years. Some workers hold an approved exemption from the Employment Security Department, such as people who live outside Washington. They show the approval letter to their employer and the deduction stops.
Paid Family and Medical Leave in 2026
The total premium rose to 1.13% of wages for 2026, from 0.92%. Employees pay 71.43% of that total, which works out to 0.807% of pay. The employer covers the rest, though businesses with fewer than 50 staff may skip their part.
The premium stops at the Social Security wage base of $184,500. For 2027 the state has set the total at 1.2%.
The money funds up to 12 weeks of paid leave for a new child, a serious illness or caring for a relative, with more in some combined cases. Benefits are paid by the state, not your employer.
At $185,000, just over the cap, the employee premium reaches its 2026 ceiling of $1,489.21.
Worked Example: $60,000 in Washington
A single warehouse supervisor in Spokane earning $60,000:
| Line | Per year | Per month |
|---|---|---|
| Gross pay | $60,000 | $5,000 |
| Federal income tax | −$5,020 | −$418.33 |
| Social Security | −$3,720 | −$310 |
| Medicare | −$870 | −$72.50 |
| WA Cares Fund (0.58%) | −$348 | −$29 |
| Paid Family and Medical Leave (employee share) | −$484.30 | −$40.36 |
| Net pay | $49,557.70 | $4,129.81 |
WA Cares is 0.58% × $60,000 = $348. Paid leave is 0.807% × $60,000 = $484.30. Together the two premiums cost $832.30, about $69.36 a month. Total deductions are 17.4% of pay.
Washington Net Pay by Income
Single filer, 2026, all deductions including both premiums:
| Salary | Federal income tax | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $50,000 | $3,820 | $8,338.58 | $41,661.42 | $3,471.79 |
| $75,000 | $7,670 | $14,447.87 | $60,552.13 | $5,046.01 |
| $100,000 | $13,170 | $22,207.16 | $77,792.84 | $6,482.74 |
| $150,000 | $24,734 | $38,289.74 | $111,710.26 | $9,309.19 |
| $220,000 | $41,704 | $59,278.21 | $160,721.79 | $13,393.48 |
| $300,000 | $68,134.25 | $88,052.46 | $211,947.54 | $17,662.29 |
At $220,000, paid leave holds at $1,489.21 because of the cap, while WA Cares climbs to $1,276.
Washington Paycheck Sizes
For the $65,000 single salary used in the summary above:
| Pay schedule | Gross per paycheck | Net per paycheck |
|---|---|---|
| Weekly (52) | $1,250 | $1,028.96 |
| Every two weeks (26) | $2,500 | $2,057.92 |
| Twice a month (24) | $2,708.33 | $2,229.41 |
| Monthly (12) | $5,416.67 | $4,458.82 |
Both premiums are a fixed share of each paycheck, so they rise and fall with overtime and bonuses. Federal income tax withholding follows your W-4 and the IRS tables in Publication 15-T.
What Washington Taxes and What It Skips
- No tax on wages, salary, tips or bonuses.
- Premiums apply to gross wages, including bonuses and commission.
- Capital gains: Washington taxes some large long term gains, but that is filed separately and never withheld from pay.
- No city income tax anywhere in the state, Seattle included.
Washington Versus Oregon
The Portland area straddles two very different systems. Oregon taxes wages at rates that climb quickly, while Washington takes only the two premiums shown here.
Where you work and where you live both matter. An Oregon resident who works in Vancouver, Washington still owes Oregon tax on those wages. A Washington resident who works in Portland owes Oregon tax as a nonresident. The Oregon Gross to Net Calculator shows the Oregon side for the same salary.
Shoppers also notice the reverse pattern: Oregon has no general sales tax and Washington does, so a straight paycheck comparison does not tell the whole story.
Assumptions and Limits
- No WA Cares exemption on file.
- Employer with 50 or more employees using the standard 71.43% employee share.
- Federal tax uses the standard deduction with no credits.
Sources: Washington Employment Security Department (Paid Family and Medical Leave 2026 rate); WA Cares Fund employer guide; IRS Rev. Proc. 2025-32; Social Security Administration. Rates for 2026.
Frequently Asked Questions
Does Washington State have an income tax on wages?
No. Washington does not tax wages, salary or tips.
What is the WA Cares deduction?
0.58% of all gross wages, with no annual cap.
What is the Paid Family and Medical Leave rate for 2026?
The total is 1.13%; employees pay 71.43% of it, about 0.807% of wages up to $184,500.
What is $65,000 after tax in Washington?
About $53,505.85 a year after federal tax, FICA and both state premiums.
Can I opt out of WA Cares?
Only with an approved exemption from the Employment Security Department.
Does Seattle tax wages?
No. There is no city income tax in Washington.
Do bonuses pay WA Cares and paid leave premiums?
Yes. Both premiums apply to gross wages, including bonuses and commission. Paid leave stops once total wages for the year pass $184,500; WA Cares never stops.