Quick Washington Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | 0% (no state income tax) |
| Sales Tax | 6.5% statewide, 8–10% in major cities (Seattle, Bellevue) |
| Jock Tax | Applied on income earned in other states; Washington does not tax non-residents directly |
| Cost of Living (Range) | $70,000 – $150,000 annual for single-person moderate-to-high lifestyle |
| Average Home Price | ~$550,000 (3-bedroom, 2-bath condo/home in King County) |
Income Tax in Washington
Washington has no state income tax, making it one of the most athlete-friendly states for residency. For professional athletes, this means:
- Maximum take-home pay: Contracts and endorsements are not reduced by state income tax.
- Residency planning: Living in Washington state can dramatically reduce an individuals/athletes’ annual tax burden compared to other, high-tax states like California or New York.
- NIL considerations: College athletes earning NIL income while living in Washington benefit from the same zero-state-income-tax advantage.
Example
An NBA player earning $40 million in salary and endorsements in Washington avoids a state income tax bill of potentially $5–$6 million or more, that they would owe if living in states with income tax.
Sales Tax
Washington charges a state sales tax of 6.5%, with local add-ons bringing rates to 8–10% in urban areas. Athletes and high-income residents can reduce spending impact by:
- Planning purchases in lower-tax counties.
- Using online options where tax rates vary.
Example
Buying a $200,000 luxury vehicle in Seattle will include roughly $16,000–$20,000 in sales tax, while in other counties it may be slightly less.
Jock Tax
Washington does not impose a state income tax, but traveling athletes may still encounter jock tax obligations in other states where games or appearances occur.
- Non-resident tax applies only when earning money outside Washington.
- Home-based residency in WA provides a tax-efficient base while allowing earnings elsewhere.
Example
An NFL player residing in Seattle playing away games in California will owe jock tax to California on income earned there, but all WA-earned income remains tax-free at the state level.
Cost of Living and Housing
Washington’s cost of living varies widely by region:
- Seattle/Bellevue: High-end lifestyles can cost $120k–$150k annually for a single athlete, including housing, utilities, transport, and food.
- Smaller cities: $70k–$100k for a similar lifestyle.
Housing
- Average 3-bedroom condo or home in King County: ~$550,000-$750k and often in today’s economy is more in the $1M+ range.
- Homeownership benefits include no property tax deduction on income (since no income tax) but property taxes still apply for city/county services.
Residency Rules
Athletes establishing residency in Washington benefit from:
- No state income tax on earned income.
- Eligibility for certain tax exemptions at local level.
- Simplified long-term wealth planning.
Example
A college athlete planning a pro career might maintain Washington residency to optimize take-home pay, even if playing games in multiple states.
Why Washington is Athlete-Friendly
- No state income tax = maximum net income.
- Strategic for residency and wealth planning.
- Favorable cost of living relative to take-home pay.
- Supports long-term investment planning.
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Related No Income Tax States
- Nevada State Athlete Taxes
- South Dakota State Athlete Taxes
- Wyoming State Athlete Taxes
- Texas State Athlete Taxes
- Tennessee State Athlete Taxes
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Credits
Sources: Washington Department of Revenue, Tax Foundation, State Tax Rates 2025, Zillow/Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
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