Cost of Living in Washington — Housing, Taxes & Everyday Expenses
No income tax, tech hub, high wages, high housing costs
Data: 2026-Q2 · BLS · HUD · KFFOverview
Washington's no income tax policy combined with high tech wages (Amazon, Microsoft, Boeing) creates strong nominal purchasing power, partially offset by high housing costs especially in Seattle.
Housing costs
Median 1BR rent in Seattle is approximately $2,100-$2,400. Bellevue and Redmond are similar. Spokane and Tacoma are more affordable at $1,100-$1,400.
1BR FMR across major Washington cities: $2,146 – $2,146/mo (HUD FY2026)
Tax reality
Washington has no state income tax. A 7% capital gains tax on gains over $250,000 was enacted in 2022.
Washington has no state income tax — a meaningful boost to take-home pay versus high-tax states.
Everyday expenses
At a cost of living index of 119, Washington is about 19% more expensive than the national average of 100. Washington's no income tax saves $5,000-$10,000+/year for tech workers. This partially but not fully offsets Seattle's high housing costs.
City comparison
Salary reality in Washington
Cost of Living in Washington — FAQ
Does Washington State have an income tax?
No. Washington has no state income tax. A 7% capital gains tax on gains over $250,000 was enacted in 2022 but does not affect wage income.
Is Seattle expensive?
Yes. Seattle has a cost of living index of approximately 150+, driven primarily by housing costs. No income tax partially but not fully offsets this.