| 2009 POLICY HIGHLIGHTER | ||||
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July 22, 2009
Washington State Tax Rankings
By Anna Stinogel
Providing taxpayers, policymakers and journalists with basic data on taxes and
spending is part of EFF’s mission to bring transparency to state and local governments.
All of Washington's primary taxes for which data are available show them to be in the
top third of national tax rankings, with the exception of state corporate and personal
income taxes.
Rankings are 1-50, highest to lowest.
Tax |
Rate |
Fiscal Year |
Rank |
Spirits |
$19.51/gal. |
2009 |
2 |
Wireless Tax |
16.43% |
2007 |
2 |
Gasoline |
$0.375/gal. |
2009 |
3 |
State Sales |
6.50% |
2009 |
6 |
Cigarette |
$2.025/pack |
2009 |
6 |
Tax Freedom Day |
16-Apr-09 |
2009 |
8 |
Table Wine |
$0.87/gal. |
2009 |
15 |
Maximum Local Sales |
*2.50% |
2008 |
16 |
Beer |
$0.26/gal. |
2009 |
17 |
State+Local taxes per $1000 in personal income |
111.99 |
2006 |
28 |
Individual Income |
None |
2009 |
50 |
Corporate Income |
None |
2009 |
50 |
Estate Tax (Max state) |
19% |
2009 |
Unknown |
Car Rental Tax (Max. state+local) |
8.60% |
2009 |
Unknown |
Tax Freedom Day including federal deficit |
29-May-09 |
2009 |
8 |
As Arthur Laffer, Stephen Moore and Jonathan Williams wrote in their most recent
edition of Rich States, Poor States, high taxes don’t redistribute income; they redistribute
people. The authors provide ample evidence of this in their Economic Competitiveness
Index in which Washington ranks fifth for economic performance. The index uses
personal income per capita growth, the state’s ten-year domestic migration rate,
and non-farm payroll employment data.
Washington’s impressive ranking is mostly due to the state’s lack of income taxes—
seen as a high attractor for new businesses, entrepreneurs and job-generating capital.
However, Washington does impose a tax on gross receipts for businesses, arguably more
harmful than a tax on corporate profits. This business and occupation tax is an exception to
the rule and cannot be ranked in relation to other states.
competitive advantage over other states would fall significantly. In fact, due to the high
rates and ranks of the state’s other taxes—including the highest minimum wage in the nation
and restrictive growth management policies—Washington would likely shift from one of the
most competitive to the least.
For a more complete look at the taxes Washington citizens pay, visit www.TaxSleuth.com.
*Max local sales increased to 3.0% in April 2009; King Co. Food & Beverage Tax brings max local restaurant tax to 3.5% (State/local combined: 10%)
Anna Stinogel is a Research Assistant for EFF's Economic Policy Center.