How Does Washington State Stack Up?

Think Washingtonians have it bad when it comes to taxation?  Have you ever wondered how Washington's taxes compare to other states and the U.S. as a whole?  As it turns out, we aren't the worst off in the U.S.  In fact, according to 2009 data (the most recent complete data available) Washington is below average in per capita state and local taxes.  As shown in the chart below, Washingtonians pay $4,049 in property, sales, and other taxes on average annually.  That is slightly below the national average of $4,141 per capita - a 2.2% difference.   

Washington's tax structure is different than many other states.  We are one of seven states that doesn't impose a state income tax.  However, Washingtonians are unduly burdened by the state's relatively high sales tax - one of the most regressive taxes out there.  On average, Washingtonians spend $1,850 on sales tax.  The U.S. average is only $948.  That is an astonishing 95% difference.

Compared to other states, Washington ranks 21st in the nation for the cost of state and local taxes per capita.  Only twenty other states have taxes higher than Washington.  As noted in "A Citizen's Guide to the Washington State Budget," an especially informative publication by the Senate Ways & Means Committee, this ranking has been used to gauge Washington's tax burden on residents.  However, in recent decades this measure has not been as reliable as it once was due to the explosion of wealth (aka stock options) in the late 1990s and 2000s.

If you are interested in more information or seeing compelling visual comparison's, check out the "My Money Blog" post on state comparisons.  This post sources the information from The Tax Foundation, a self-described nonpartisan research group dedicated to "educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government."