How Washington taxes retirement income
Washington has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes Washington one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in Washington, at a glance
| Income type | Taxed by Washington? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | Estate tax (exemption $3,000,000) |
| Avg. property tax rate | 0.75% of home value |
Does Washington tax Social Security benefits?
No. Washington does not tax Social Security benefits. That follows automatically from having no state income tax.
Does Washington tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, Washington does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Washington taxation of retirement income (Social Security, pensions, 401(k)/IRA): Washington Department of Revenue / Taxation.
- Washington estate / inheritance tax: Washington tax authority.