Washington has a 7.0% long-term capital gains tax which applies to the sale of stocks, bonds, business interest, and other investments. However, the capital gains tax does not apply to other assets such as real estate, retirement accounts, certain livestock, commercial fishing privileges, and more. Starting in Tax Year 2022, you may need to file a capital gains tax return if you sold long-term assets shown above, and the gains exceed the $250,000 threshold.
There are several deductions and exemptions available that may reduce the taxable amount of long-term gains, including an annual standard deduction of $250,000 per individual. In the case of spouses or domestic partners, the combined standard deduction is limited to $250,000 whether they file joint or separate returns.
The tax takes effect on Jan. 1, 2022, and the first payments are due on or before April 18, 2023.
TurboTax does not file WA tax forms.
WA State Capital Gains Tax Guide
FAQs
How to file your WA Capital Gains Tax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
