Estate tax rates in Washington state are progressive and range from 10% to 20%. The estate tax in Washington applies to estates worth $2.193 million and up.1 If you’re a Washington resident and you’re starting to think about estate planning, this guide takes a deep dive into everything you need to know. If you think your estate may be subject to the estate tax, you may want to consider consulting a financial advisor. SmartAsset’s financial advisor matching tool can pair you with an advisor in your area who fits your specific needs.
Washington Estate Tax Exemption
The threshold for the estate tax in Washington is $2.193 million as of 2021. So if a person’s estate is equal to less than $2.193 million, then it won’t be taxed by Washington state upon the person’s death. If the estate is equal to more than $2.193 million, then the first $2.193 million won’t be subject to the estate tax, but the tax will be applied to the value of the estate above that threshold.
Washington Estate Tax Rate
Washington’s estate tax is progressive, with a series of increasing rates applying as the value of the estate gets higher.
You can find your taxable estate bracket in the chart below. The base taxes paid is what you owe on money that falls below your bracket. Then see how much your taxable estate exceeds the bottom limit of your bracket. Multiply that number by the marginal rate. Finally, add that amount to the base taxes and you’ll have your total estate tax bill.
Here’s an example: Let’s say your total estate is worth $7 million. With the $2.193 million exemption, your taxable estate equals $4.807 million. Find where that total falls on the chart below. The base taxes are $550,000, keep this number in mind. The bottom of the threshold is $4 million, which you subtract from $4.807 million and get $807,000. That figure multiplied by the marginal rate of 18% is $145,260. That sum ($145,260) plus the base taxes ($550,000) equals $695,260, which is your total Washington estate tax burden.
WASHINGTON ESTATE TAX RATES
| Taxable Estate* | Base Taxes Paid | Marginal Rate | Rate Threshold** |
| $0 – $1 million | $0 | 10% | $0 |
| $1 million – $2 million | $100,000 | 14% | $1 million |
| $2 million – $3 million | $240,000 | 15% | $2 million |
| $3 million – $4 million | $390,000 | 16% | $3 million |
| $4 million – $6 million | $550,000 | 18% | $4 million |
| $6 million – $7 million | $910,000 | 19% | $6 million |
| $7 million – $9 million | $1.1 million | 19.5% | $7 million |
| Over $9 Million | $1.49 million | 20% | $9 million |
*The taxable estate is the total above the exemption of $2.193 million.
**The rate threshold is the point at which the marginal estate tax rate goes into effect.
What Is the Estate Tax?
The estate tax is a tax levied on the estate of a recently deceased person before their money or property is passed on to their heirs. It is sometimes called the “death tax” and only applies to estates worth a particular amount, which varies by state. It shouldn’t be confused with the inheritance tax, which some states apply to money after it has been inherited.
Washington Inheritance Tax
While there is no inheritance tax in Washington, but another state’s inheritance tax could apply to you. For example, in Pennsylvania, the inheritance tax applies if the dead person lived there, even if the inheritor lives out of state.2
Washington Gift Tax
Washington has no gift tax, so you’ll only be subject to the federal gift tax, which says you can give up to $16,000 to discrete individuals without any tax implications in 2022. That number goes up to $17,000 in 2022. Any amount gifted over the threshold counts against your lifetime exemption of $12.92 million.
Washington Estate Tax for Married Couples
The Washington estate tax is not portable for married couples. When both spouses die, only one exemption of $2.193 million applies.
Federal Estate Tax
In addition to the Washington estate tax, there is a federal estate tax you may have to pay, but the exemption is much higher. The federal estate tax exemption is $12.06 million in 2022, going up to $12.92 million in 2023. It is portable between spouses. This means that by taking certain legal steps, a couple can protect up to $25.84 million from estate taxes.3
The top federal estate tax rate is 40%. By following the same method described in the Washington Estate Tax Rate section and using the table below, you can figure out your federal estate tax burden.4
FEDERAL ESTATE TAX RATES
| Taxable Estate* | Base Taxes Paid | Marginal Rate | Rate Threshold** |
| $1 – $10,000 | $0 | 18% | $1 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1 million | $248,300 | 39% | $750,000 |
| Over $1 million | $345,800 | 40% | $1 million |
*The taxable estate is the total above the exemption of $12.92 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.
Overall Washington Tax Picture
Washington is a mixed bag when it comes to taxes. To start, Washington has no state income tax, meaning that Social Security, retirement income, pensions and other income sources are not taxed. This makes it one of the friendlier states for retirees. If you’re new to the Evergreen State, you can use our Washington paycheck calculator to see how that lack of state income tax may affect your take home pay.
The state does have very high sales taxes, however. The statewide sales tax rate is 6.5% and when county rates are included, it’s typically between 8% and 10%. Property taxes in Washington are relatively low by national standards. The average effective property tax rate is 1.06%.
Estate Planning Tips
- If you think you need help with estate planning or any other kind of financial planning, you may want to turn to a professional. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- When you are planning your estate, it’s important to keep track of how much money you’ll be bringing in during your retirement. One of those sources of income is likely to be Social Security. You can use our Social Security calculator to see how much those payments will be.
- If you want to make sure everything is set for when you do eventually die, a living trust might be the way to go. This will let you transfer the control of some of your assets to a trustee.
Sources
- “Estate Tax.” Washington Department of Revenue. https://dor.wa.gov/taxes-rates/other-taxes/estate-tax.
- Pennsylvania Department of Revenue. “Inheritance Tax.” https://www.revenue.pa.gov:443/TaxTypes/InheritanceTax/Pages/default.aspx.
- “Frequently Asked Questions on Estate Taxes.” Internal Revenue Service, August 9, 2023. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes.
- “Estate Tax.” Internal Revenue Service, October 26, 2022. https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax.
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