Washington’s capital-gains excise tax applies to individuals’ Washington-allocated long-term capital gains. For tax years 2025 and later, taxable gains up to $1,000,000 are taxed at 7%; the amount above $1,000,000 is taxed at 9.9%. You generally owe the tax only after Washington adjustments, exemptions, the annual standard deduction and any other allowed deductions are applied. Real-estate sales and several other transaction types are exempt, while stock and other intangible gains can be taxable when they belong to a Washington resident.
What Washington taxes—and who is the taxpayer
The Washington capital-gains levy is an excise tax imposed on natural persons, not a broad income tax on every receipt. The individual who beneficially owns the gain is responsible even when the gain was realized through a partnership, limited liability company, S corporation, grantor trust or another pass-through or disregarded entity. The entity itself is not the taxpayer under the individual capital-gains chapter.
As an Amazon Associate I earn from qualifying purchases.
The statute describes the liability as seven percent multiplied by an individual’s Washington capital gains, with the additional rate applying to the higher tier beginning in 2025. Only long-term gains are in the ordinary calculation: for this purpose, an asset generally must have been held for more than one year.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
| Tax year | Taxable Washington gain tier | Rate |
|---|---|---|
| 2025 and later | First $1,000,000 | 7% |
| 2025 and later | Amount over $1,000,000 | 9.9% (7% plus 2.9%) |
The $1,000,000 breakpoint is applied after Washington’s adjustments and deductions, not to an unadjusted sale price or an unmodified federal Schedule D total.
#1 Best Overall
- Compact & Portable Design: This Small Excel, Word, PowerPoint, & Windows Cheat Sheet Mouse Pad measures 11.8" x 9.8", offering a portable mouse pad. Its compact size fits in bags or laptop cases, suitable for professionals, students, or travelers.
- Multi-Software Shortcut Guide: Featuring essential shortcut keys for Excel, Word, PowerPoint, & Windows, this small mouse pad provides a quick reference for frequently used shortcuts, offering a reference designed to support workflow efficiency
- Smooth & Precise Surface: The finely-textured surface ensures precise mouse control, allowing for smooth and accurate movement during work or gaming sessions.
- Durable & Non-Slip Design: This Multi-Software Shortcut Mouse Pad features stitched edges to reduce fraying. The non-slip rubber base helps keep it securely in place, and the water-resistant fabric allows for easier maintenance.
- Clear Print Quality: Displays high-resolution printing intended to remain legible through regular use and cleaning
Individuals covered by the rules
A Washington-domiciled individual can owe tax on Washington-attributed intangible gains, such as stock or a privately held business interest. A nondomiciliary can also be treated as a resident when the person maintained a Washington abode and was physically present in Washington for more than 183 days. The 2026 statutory text includes a domiciled Washington individual subject to limited out-of-state-abode conditions and the 183-day nondomiciliary test.
For an intangible asset, the key connection is generally the owner’s Washington domicile or qualifying residency. For tangible personal property, the location of the property when it is sold is central. A person who is not a Washington resident can therefore have a Washington filing obligation for a taxable long-term gain tied to Washington-situs tangible property.
A quick screening test before you calculate
Use this sequence to determine whether a detailed computation is necessary:
Recommended Free Tools
- Check the federal return. Identify long-term capital gains reported on federal Schedule D and related forms. Short-term gains are not part of the ordinary Washington capital-gains base.
- Identify the owner. Trace pass-through income to the natural person who is the beneficial owner rather than stopping at the entity that issued the tax statement.
- Establish the Washington connection. For intangibles, examine domicile and the resident tests. For tangible property, determine whether it was in Washington when sold.
- Separate exempt transactions. A qualifying real-estate sale, for example, is removed even if another sale in the same year is taxable.
- Estimate the remaining Washington long-term gain. If the amount does not exceed the annual standard deduction after all adjustments, no tax is due.
This screening is only a starting point. The statutory adjustments can make the Washington amount differ materially from the federal amount.
How to calculate Washington capital-gains tax
1. Start with federal net long-term capital gain
Use the federal net long-term result as the starting figure. Retain the federal schedules showing each asset, acquisition and sale dates, basis, proceeds and whether a loss was carried forward. Washington’s computation is built from that federal information but does not simply copy the federal taxable-income line.
2. Make Washington adjusted-capital-gain modifications
Washington law requires additions and subtractions that produce an adjusted capital gain. Common modifications include:
Rank #2
- [MULTIFUNCTIONAL]You'll get 2 pieces computer monitor memo boards that you can stick on the left and right edges of your monitor, and they're the perfect office desk organizers and accessories. Computer monitor side panels desktop organizer are suitable for home work or office,bringing convenience. Desktop memo is used to organize meeting memos, important messages, business cards, planning notes.Paste on the message board to keep track of important things and to-do items to prevent forgetting.
- [🌟HIGHLY QUALITY] The material of computer screen side note holder is transparent acrylic. Durable, simple, stylish, light weight, easy to use, not easy to fall off or break. This cute office supplies for women desk can be used for a long time. This computer desk accessories is waterproof and dirt resistance, and look simple and stylish. The transparent acrylic sticky note holder as cubicle accessories is easy to notice the context of your sticky notes.
- [📋Easy to use] Office must haves cool office gadgets for desk ready to tear, easy to install and remove, not easy to leave traces. You only need to peel off the protective film on the surface of the computer side board memo, wipe off the dust on the edge of the computer monitor, and then stick the desk essentials for women office on the right or left side of the tape, and you're done. A perfect gift for your colleagues, friends or classmates and family members or relatives
- [🏢MULTI-SCENE USE] This desk supplies computer memo board can be applied to home and office, clear your office decor for women, suitable for most computer monitors, screens and cabinets, you can put it where you think, this cute office decor serve as a reminder. Stick on the computer side. It’s a good office gadgets can remind work improve office productivity. Pasted cabinets, dressers, refrigerators, walls, etc as cubicle accessories. To make life more orderly.
- [💌NOTE] The adhesive force of the computer sticky note holder is very strong. It can not be directly pasted on the computer screen. It should pasted on the black edge of the screen. Narrow edge not recommended!!! If you are not satisfied with your purchase, or if the product is damaged or broken in transit, please let us know immediately. We will promptly solve your problem.
- Adding back exempt or non-Washington long-term losses that reduced the federal result.
- Removing exempt or non-Washington long-term gains.
- Applying qualifying loss carryovers only to the extent the statute attributes them to Washington.
- Accounting for section 1256 contracts and other items specifically addressed by the statute.
The purpose is to prevent a loss from an excluded or out-of-state transaction from sheltering a Washington-taxable gain. Keep a transaction-level schedule so each addition or subtraction can be tied to a federal line and a Washington rule.
3. Allocate the adjusted gains to Washington
Apply the allocation rules in RCW 82.87.100. Intangible gains generally follow the qualifying Washington resident, while tangible personal-property gains follow the property’s Washington situs at sale. Then remove transactions that meet a statutory exemption. When a sale has both Washington and non-Washington elements, document the allocation method and supporting dates, locations and ownership records.
4. Subtract the annual standard deduction
For 2025, the standard deduction is $278,000. The Washington Department of Revenue lists that amount for an individual, married couple or domestic partnership, and it is adjusted annually for inflation. Subtract it from Washington adjusted capital gains after exempt transactions have been removed. A negative result does not create a refund or a carryforward under the capital-gains tax rules.
5. Apply additional deductions when eligible
Two deductions can further reduce the taxable amount:
- Qualified family-owned small business deduction. Eligibility depends on the statutory definition and other requirements. The Department of Revenue’s 2025 annual table lists $11,095,000 as the qualified-family-owned-small-business maximum income figure. Treat that as the 2025 table amount, not a permanent threshold.
- Charitable-donation deduction. For 2025, qualifying gifts must exceed $278,000, and the deduction is capped at $111,000. Keep donation receipts and evidence that the recipient and transfer qualify under the rule.
Do not subtract either item automatically. Confirm the transaction, ownership, timing and documentation requirements for the tax year involved.
6. Apply the two rate tiers
After deductions, apply 7% to the first $1,000,000 of taxable Washington capital gains and 9.9% to the excess. The calculation can be written as:
Rank #3
- Stay Organized with Ease: Our To Do List Notepad provides multiple sections with plenty of space to jot down all of your important tasks.A versatile office supply perfect for daily task management, helping you keep track of everything that needs to be done and prioritize effectively.
- Achieve Your Productivity Goals: Begin each day on a positive note, reminding you of your potential, strength, and the significance of staying focused on your goals. Our Daily Checklist Notepad is the ultimate tool to streamline your daily planning and elevate your productivity. With a clear and concise overview of your tasks, you can effortlessly prioritize what truly matters and make consistent strides towards achieving your goals.
- Reliable and Stylish: Our to do list planner combines functionality with durability. With a transparent PP cover, the inner pages are well-protected from dirt and wear. Additionally, the back cover is crafted with thick paperboard, offering a stable surface for your writing needs. Each notepad includes 52 pages of high-quality, 100gsm paper, which is thick and non-bleeding, resulting in a smooth and enjoyable writing experience.
- Versatile Use: This daily checklist notepad, suitable for teacher supplies and a wide range of applications, proves invaluable in various settings including work, school, and home. Whether you need to organize your daily tasks, plan a project, or create a grocery list, this notepad serves as the ideal tool. Its compact size ensures easy portability, allowing you to conveniently carry it with you throughout your day.
- Perfect Present for Anyone: Our Daily To-Do List Notepad is the perfect present for those who value organization and productivity. With its stylish design and versatility, this office desk accessory is also a practical addition to school supplies. Suitable for students, professionals, and homemakers alike, it helps keep tasks and priorities in check effortlessly.
Tax before credits = (up to $1,000,000 × 7%) + (amount over $1,000,000 × 9.9%).
If taxable Washington gains are $500,000, the tax before credits is $35,000. If taxable gains are $1,200,000, the first $1,000,000 produces $70,000 and the remaining $200,000 produces $19,800, for $89,800 before credits. These examples assume the amounts are already taxable after Washington deductions and are illustrative arithmetic, not tax advice.
7. Subtract available credits
Credits reduce the computed tax rather than the gain. Potential credits include:
- A Washington business-and-occupation-tax credit for qualifying transactions occurring in 2025 and later.
- A credit for legally imposed tax paid to another jurisdiction on gains that are also included in Washington gains.
Keep the other-jurisdiction return, payment evidence and B&O-tax records. A credit is limited by its statutory conditions; paying another tax does not by itself guarantee a credit.
Exempt transactions and assets
The exemptions are transaction-based. A person can have one exempt sale and another taxable sale in the same year, so do not classify an entire portfolio or business as exempt based on one asset.
| Transaction or asset | Washington treatment | Records to retain |
|---|---|---|
| Real estate | Exempt under the listed real-estate exemption. | Closing statement, deed, property description and allocation records. |
| Interest in a privately held entity | Exempt only to the extent the gain is directly attributable to qualifying real estate. | Entity asset schedule and calculation tracing the real-estate portion. |
| Certain retirement accounts | Exempt when the account and transaction meet the statutory conditions. | Account statements and distribution or sale documentation. |
| Condemnation or imminent threat of condemnation | Exempt for qualifying transactions. | Government notices, appraisal and settlement documents. |
| Farm or ranch livestock | Exempt for qualifying livestock transactions. | Ownership, holding-period and sale records. |
| Depreciable or section 179 business assets | Exempt when the property and use satisfy the listed conditions. | Fixed-asset ledger, depreciation history and sales invoice. |
| Timber, timberlands and specified timber-related REIT distributions | Exempt when the statutory timber requirements are met. | Timber deeds, management records and distribution statements. |
| Commercial fishing privileges | Exempt for qualifying privileges. | Permit, license and transfer records. |
| Goodwill from selling a franchised automobile dealership | Exempt when the sale meets the specific goodwill conditions. | Purchase agreement separating goodwill from other assets. |
Stock in a publicly traded company is not listed among these general exemptions. A long-term stock gain can therefore be taxable when it is allocated to Washington and remains above the deductions. A business-interest gain likewise requires an asset-by-asset review rather than an assumption that the whole sale is excluded.
Rank #4
- 【Adjustable & Ergonomic】：This laptop stand can be adjusted to a comfortable height and angle according to your actual needs, letting you fix posture and reduce your neck fatigue, back pain and eye strain. Very comfortable for working in home, office and outdoor.
- 【Sturdy & Protective】 ：Made of sturdy metal, it can support up to 17.6 lbs (8kg) weight on top; With 2 rubber mats on the hook and anti-skid silicone pads on top & bottom, it can secure your laptop in place and maximum protect your device from scratches and sliding. Moreover, smooth edges will never hurt your hands.
- 【Heat Dissipation】 ：The top of the laptop stand is designed with multiple ventilation holes. The open design offers greater ventilation and more airflow to cool your laptop during operation other than it just lays flat on the table.
- 【Portable & Foldable】：The foldable design allows you to easily slip it in your backpack. Ideal for people who travel for business a lot.
- 【Broad Compatibility】：Our desktop book stand is compatible with all laptops from 10-15.6 inches, such as MacBook Air/ Pro, Google Pixelbook, Dell XPS, HP, ASUS, Lenovo ThinkPad, Acer, Chromebook and Microsoft Surface, etc.Be your ideal companion in Home, Office & Outdoor.
Losses, installment sales and unusual federal items
Washington losses do not create a carryforward
If Washington capital gains are below zero for a taxable year, no Washington capital-gains tax is due and the negative amount generally cannot be carried forward under RCW 82.87.040. This differs from the federal system, where capital-loss rules can allow future-year use. Federal loss carryovers enter the Washington calculation only to the extent the statute attributes them to Washington.
When an exempt or non-Washington loss reduced federal net gain, Washington adjustments add that loss back. Otherwise, a loss from an excluded transaction could improperly shelter a Washington-taxable transaction.
Installment sales
Gains from an installment sale generally follow the federal installment method. Report the gain as federal installment payments are recognized, then apply Washington allocation, exemption and deduction rules to the recognized long-term portion for each year. Keep the original contract and a year-by-year principal, interest and gain schedule.
Section 1256 and other specified items
Section 1256 contracts and qualifying loss carryovers have specific statutory treatment in the adjusted-capital-gain calculation. Do not rely on a brokerage’s net gain summary alone; reconcile those items to the federal forms and the Washington adjustments required for the year.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Filing, payment and important dates
Who must file
Only individuals who owe Washington capital-gains tax must file the Washington capital-gains return. The filing must include a complete copy of the federal return for the same year. If deductions and exemptions reduce the Washington amount to zero, the capital-gains return is generally not required solely because a person sold an asset.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallDue date and payment
The return is due on the federal individual-income-tax due date for that year. Washington’s Department of Revenue generally requires electronic payment and warns that late-payment penalties and interest can apply. Confirm the current Department of Revenue notice before filing because federal extensions or disaster relief can change the practical deadline.
Best Value
- Twin-Ball Design : Hiacry gel pen features a double ball conical tip that reduces writing resistance and provides a stable and smooth writing experience. 0.7mm quick drying black ink ensures no jumping, leakage or seepage.
- Quick-Dry Long Lasting Ink：0.7mm black ink can slide effortlessly, dry immediately, & is not easily dirty. It has a high-capacity reservoir (up to 1300 meters), which is very suitable for left-handed & right-handed users.
- Sleek Design for Journaling & Planning: Engineered with a low center of gravity and precision tip for steady ink flow, these journaling pens excel at note-taking, sketching, planning, and more. They combine stylish pens with top-tier performance.
- Rolling Ball Design：The pocket clip with roll ball design can be easily attached to notebook pockets and binders, in addition, the fidget on the pen clip is also a small toy for your daily thinking to relieve stress.
- Comfortable Non-Slip Grip：The ergonomic pen barrel has a soft rubberized coating for a comfortable, non-slip grip, so you won't get fatigued even after long hours of writing.
2025 filing-year storm relief
For the 2025 filing year, the Department of Revenue announced a May 1, 2026 extension for taxpayers covered by federal severe-storm and flooding relief. That date applies only to taxpayers within the relief scope; it is not a blanket replacement for the ordinary deadline.
Prepayment beginning in 2026
Washington Laws 2026, Chapter 191 permits a taxpayer who owes the tax to prepay beginning six months before the filing and payment due date. The prepayment must use the Department of Revenue’s prescribed manner and form. Because the law changes the timing option rather than eliminating the filing obligation, retain confirmation of any prepayment and reconcile it to the filed return.
Scenario guide by asset type
| Asset type | Holding-period question | Washington connection | Typical next step |
|---|---|---|---|
| Real estate | Long-term status may matter federally, but a qualifying real-estate exemption is the primary Washington question. | Property and transaction documents establish the situs. | Test the real-estate exemption before including the gain. |
| Public-company stock | Held more than one year for the ordinary Washington calculation. | Owner’s Washington domicile or qualifying residency. | Start with Schedule D, then apply Washington adjustments and deductions. |
| Privately held business interest | Confirm the long-term holding period and the entity’s underlying assets. | Owner’s residency; underlying real-estate attribution may create a partial exemption. | Obtain an entity asset and gain-allocation schedule. |
| Retirement asset | Identify whether the account and transaction fit a listed retirement exemption. | Account and transaction records. | Verify the statutory exemption before reporting a taxable gain. |
| Tangible personal property | Determine whether the gain is long-term. | Where the property was located when sold. | Document Washington situs and remove any qualifying exemption. |
Records and common errors
A defensible return is built from transaction-level evidence. Retain:
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errors- Federal Form 1040, Schedule D and supporting forms for the same year.
- Purchase confirmations, basis adjustments, sale statements and holding-period dates.
- Pass-through schedules showing the individual’s beneficial share.
- Washington allocation workpapers for domicile, days present, property location and mixed transactions.
- Proof for each exemption, charitable gift, small-business deduction and tax credit.
- Federal installment schedules and records of any prior-year loss carryover.
- Electronic payment or prepayment confirmations.
Frequent mistakes include treating every capital gain as taxable, assuming real estate is the only exempt category, using federal net gain without Washington add-backs, carrying a Washington loss into a later year, applying the 9.9% rate to the entire gain instead of only the excess over $1,000,000, and overlooking the requirement to attach the complete federal return.
When professional help is sensible
A tax professional familiar with Washington’s capital-gains return can be useful when you have pass-through ownership, a move into or out of Washington, more than one state’s tax claim, an installment sale, a privately held business sale, mixed real-estate and non-real-estate assets, or a potential family-owned-small-business deduction. Ask the preparer to confirm that the software or service supports the current Washington return, the applicable tax year and the latest Department of Revenue rules. Keep your own transaction schedule even when someone else prepares the filing.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
