Washington’s state and local taxes and spending per capita ranked 14th and 15th highest among the states in 2022

By: Emily Makings
9:32 am
November 7, 2024

The tax burden on businesses in Washington is above the national average, as we wrote in a policy brief earlier this week. New data from the U.S. Census Bureau allows us to compare total state and local taxes and spending in Washington to other states for fiscal year 2022.

The two main ways to compare taxes and spending are per capita and as a share of personal income. According to the Census data, Washington’s state and local taxes per capita increased 11.5% to $7,458 in 2022, the 14th highest in the country. (Note that Seattle’s payroll expense tax shows up for the first time in the new data, but the state capital gains tax will first show up in the FY 2023 data.)

Washington’s state and local spending per capita increased 7.2% to $12,851, the 15th highest in the country.

Washington has the nation’s seventh highest personal income per capita. Consequently, our rankings are lower when we measure taxes and spending as a share of personal income. In 2022, Washington’s state and local taxes as a share of personal income were 10.1%, which was the 29th highest among the states. Washington’s state and local spending as a share of personal income was 17.4%, the 33rd highest.

Categories: Budget , Tax Policy.