Does Washington State have an inheritance tax?

No, Washington State does not impose an inheritance tax. It does, however, have a state-level estate tax that some people mistake for an inheritance tax.

Inheritance Tax vs. Estate Tax

It is important to distinguish between these two concepts:

• Inheritance Tax is levied on the recipient of the inheritance.
  → Washington does not apply this tax.
• Estate Tax is assessed on the estate itself, before any distribution to heirs.
  → Washington State does apply this tax.

Key Features of Washington’s Estate Tax

• Exemption Threshold: Estates valued above $2.193 million (as of 2025) are subject to tax.
• Tax Rates: Progressive rates from 10% to 20%, depending on the size of the estate.
• Applicable Parties:
• Washington residents
• Non-residents who own real estate or tangible assets located in Washington

The estate must file and pay the tax before any legal transfer of assets to heirs can be finalized. Assets below the exemption threshold are not taxed at the state level.

Federal Estate Tax Consideration

Separately, the federal estate tax may apply to estates exceeding $13.61 million (2024 exemption), regardless of the state of residence.