Washington State ranks 35th in nation for taxes paid relative to income

News Release from Washington State Department of Revenue (Hawaii info from report added in parenthesis.)

OLYMPIA – Feb. 9, 2016 – Washington collects less in state and local taxes as a share of total personal income than 34 other states, according to new data released by the Washington State Department of Revenue.

(Hawaii state and local taxes are the 4th highest in the USA.)

These statistics are among several types of analyses published by the Washington State Department of Revenue (Revenue) in its annual Comparative State and Local Taxes report. Revenue uses U.S. Census Bureau data, which are drawn from the most current tax and personal income data available.

Tax burden — including taxes paid by individuals and by businesses — can be measured in many different ways, each with its own purpose and methodology. For this report, Revenue evaluates the amount of taxes paid in relation to personal income and in relation to state population.

In Fiscal Year 2013, Washington collected $94.31 in state and local taxes per $1,000 of personal income — well below the nationwide average of $104.68 per $1,000 of personal income. Washington ranked 11th among the 13 Western states. Only Arizona and Idaho had lower taxes by this measure.

(Hawaii ranks #2 amongst Western States taking $129.73 in state and local taxes per $1,000 of personal income.  Only Alaska is higher.) 

On a per capita basis, Washington collected $4,465 in state and local, which ranked 22nd in the nation but is below the average for all states, $4,634.

(On a per capita basis, Hawaii collected $5,774 in state and local, which ranked 7th in the nation.)  

The report also considers taxes as a percent of the gross domestic (state) product, which is the value of goods and service produced in a state. Taxes as a percent of the gross domestic product from Washington were 7.6 percent, placing the state 41st out of 50 for this category.

(Taxes as a percent of the gross domestic product from Hawaii were 10.7 percent, placing the state 6th out of 50 for this category.)

The Comparative State and Local Taxes reports dating back to 1997 are posted here.

# # #

Related: Hawaii Residents Most Likely to be Living Paycheck to Paycheck – $186 left over from Average paycheck