Washington is also one of the most tax-friendly states you could possibly live in and that’s in spite of their sales taxes. Here, there’s a 6.5% state levy and municipalities can add up to 4%. That makes Washington’s combined rate the fourth-highest in the nation at 9.23% according to the Tax Foundation.
Groceries and prescription drugs are exempt, but clothes are not, and neither are motor vehicles. For them, the ordinary rate is 6.5%, plus an additional 0.3% tax.
In terms of property taxes, the Evergreen State is middle-of-the-road compared to other states, with a median property tax rate of $929 per $100,000 of assessed home value.
However, the state also has an estate tax on estates exceeding $2.193 million, but keep in mind that this threshold is adjusted for inflation every year. The tax rates range from 10% to 20%. Furthermore, Washington also offers a $2.5 million deduction for family-owned businesses, provided they are valued at less than $6 million.