One of the most common questions I receive is: “Do we have estate taxes or inheritance taxes in Washington State — and when do they apply?”
If you live in Washington and want clarity on how estate taxes work, you’re in the right place. Below is a simple explanation to help you understand the difference between estate taxes and inheritance taxes, and how to know whether these taxes may affect your estate.
Understanding the Difference Between Inheritance Tax and Estate Tax
Before diving into Washington-specific rules, it’s important to understand the difference between these two types of taxes:
Inheritance Tax: A tax imposed on the person receiving the inheritance (the beneficiary). Example: If a parent leaves their child money, the child pays the inheritance tax.
Estate Tax: A tax imposed on the estate itself before the assets are distributed to beneficiaries. This tax is paid by the estate, not by the heirs personally.
Does Washington State Have an Inheritance Tax?
No. Washington State does not have an inheritance tax. Beneficiaries in Washington do not pay a tax simply for receiving an inheritance. At the time of this writing (2024), an inheritance tax is not something Washington residents need to worry about.
Washington State Estate Tax
Washington is one of the few states that imposes its own state-level estate tax, separate from the federal estate tax. This tax is assessed on the estate after someone passes away, and before assets are distributed to heirs.
This means:
• Your heirs do not pay this tax out of what they receive.
• The tax comes “off the top” of the estate.
Estate Tax Threshold in Washington (2025)
As of 2025, Washington’s estate tax exemption is $3 million.
If the total value of your estate is below $3 million, your estate will not owe Washington estate taxes.
If it is above that amount, the portion above the exemption may be subject to tax.
Example: How the Estate Tax Works in Washington
Let’s say your estate is worth $4 million.
The first $3 million is exempt — no tax on that amount.
The remaining $1 million may be subject to Washington estate tax.
The tax rates in Washington range from 10% to 20%, depending on the estate size. The state uses a tiered table to calculate the tax liability.
Married Couples: Doubling the Exemption
If you are married, you may be able to double the exemption amount to approximately $6 million.
However — this increased exemption does not happen automatically.
To achieve this, you must have the proper estate plan in place, such as:
• A will with credit shelter provisions
• A properly structured revocable living trust
• Tax-planning tools designed for married couples
Estate Tax Planning Is Important
If your estate is even close to the $3 million threshold, planning is essential. With strategic estate planning, you can:
• Reduce or eliminate estate tax
• Preserve assets for your family
• Ensure your estate is administered properly
• Avoid costly surprises for your loved ones
If you live in Washington State and want assistance with:
• Creating a will
• Setting up a trust
• Planning for estate taxes
• Preparing powers of attorney
• Minimizing future tax burdens on your estate
We are here to assist you! Contact our office at 206-408-8158 and schedule your consultation today! You can learn more about our services by visiting our YouTube channel here: https://www.youtube.com/channel/UCTwoQBrauDybkNhi74CdvHQ
