State retirement taxes · 2026
Does Washington tax retirement income?
Short answer: No. Washington doesn’t tax Social Security in 2026. There is no broad income tax in 2026, but a capital gains tax applies and a 9.9% tax on income over $1 million starts in 2028.
What’s taxed in Washington
2026 rules.
- Social SecurityNot taxed
- Washington doesn’t tax Social Security in 2026.
- PensionsNot taxed
- Pensions are not taxed in 2026.
- IRA & 401(k) withdrawalsNot taxed
- IRA and 401(k) withdrawals are not taxed, and the capital gains tax doesn’t apply inside retirement accounts.
- Military retirement payNot taxed
- Military retirement pay is not taxed in 2026. From 2028 it would count toward income for the new tax on income over $1 million; we found no specific exemption.
- Income tax rateNone
- No broad income tax in 2026.
Does Washington tax Social Security?
Washington doesn’t tax Social Security in 2026.
There is no broad individual income tax in 2026. From January 1, 2028, the new 9.9% tax on income over $1 million (ESSB 6346) starts from federal AGI, so taxable Social Security would count toward it — but only income above the $1 million standard deduction is taxed.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Washington?
Pensions are not taxed in 2026.
From 2028, pension income will count toward the new 9.9% tax on income above $1 million; the law says pension income is not exempt from it.
Are IRA and 401(k) withdrawals taxed in Washington?
IRA and 401(k) withdrawals are not taxed, and the capital gains tax doesn’t apply inside retirement accounts.
Washington’s capital gains excise tax does not apply to transactions in 401(k), 403(b), 457, traditional or Roth IRAs or other employer plans. From 2028, distributions included in federal AGI count toward the 9.9% tax base above $1 million.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Washington?
Military retirement pay is not taxed in 2026. From 2028 it would count toward income for the new tax on income over $1 million; we found no specific exemption.
What is Washington’s income tax rate?
Washington has no broad income tax.
No broad income tax in 2026. A capital gains excise tax applies to individuals’ long-term gains above a standard deduction ($278,000 for 2025; the 2026 amount isn’t published): 7% on the first $1 million of taxable gains and 9.9% above. Real estate and retirement accounts are exempt. From January 1, 2028, a 9.9% tax applies to income over a $1 million standard deduction (spouses share one $1 million deduction); the law voids itself if a court strikes the tax down.
What tax breaks do seniors get in Washington?
None under an income tax. Senior property-tax exemption and deferral programs exist but are not covered here.
What changed for 2026?
2025 (SB 5813): a 9.9% capital gains rate on gains over $1 million from 2025. 2026 (ESSB 6346, effective June 11, 2026): a 9.9% tax on income over $1 million from January 1, 2028, with first returns due in 2029; pension income isn’t exempt. Court challenges are possible.
Washington has no broad income tax in 2026; a capital gains excise tax applies, and a 9.9% tax on income over $1 million starts in 2028.
What we couldn’t confirm
- Washington’s 2026 capital gains standard deduction isn’t published yet, so we show only the 2025 figure.
- We did not check the status of any court challenge to the 2028 income tax.
How Washington compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- WashingtonThis pageTax-free retirement incomeSocial Security Not taxedTop rate: None
- IdahoMixedSocial Security Not taxedTop rate: 5.3% flat
- OregonLess friendlySocial Security Not taxedTop rate: 9.9% top
State tax is half the picture — check the federal side
Washington retirement tax questions
Does Washington tax Social Security or pensions?
No. Washington doesn’t tax Social Security in 2026. There is no broad individual income tax in 2026. From January 1, 2028, the new 9.9% tax on income over $1 million (ESSB 6346) starts from federal AGI, so taxable Social Security would count toward it — but only income above the $1 million standard deduction is taxed.
Are IRA withdrawals and RMDs taxed in Washington?
No. IRA and 401(k) withdrawals are not taxed, and the capital gains tax doesn’t apply inside retirement accounts. Washington’s capital gains excise tax does not apply to transactions in 401(k), 403(b), 457, traditional or Roth IRAs or other employer plans. From 2028, distributions included in federal AGI count toward the 9.9% tax base above $1 million.
Is Washington tax-friendly for retirees?
We rate Washington “Tax-free retirement income” for 2026. There is no broad income tax in 2026, but a capital gains tax applies and a 9.9% tax on income over $1 million starts in 2028. Our rating covers state income tax only — not property or sales taxes, which can still matter.
Is military retirement pay taxed in Washington?
No. Military retirement pay is not taxed in 2026. From 2028 it would count toward income for the new tax on income over $1 million; we found no specific exemption.
Will Washington tax my retirement income in 2028?
Only if your income is over $1 million. ESSB 6346 imposes a 9.9% tax on income above a $1 million standard deduction from January 1, 2028 (spouses share one $1 million deduction). It starts from federal AGI and says pension income is not exempt. The law voids itself if a court strikes the tax down.
Sources for Washington
Primary sources only. We re-check them whenever an agency publishes new figures.
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