2026 tax year · Washington
RSU tax in Washington
Washington takes nothing from a vest, but your employer still under-withholds the federal share, $2,970 of it on the example below.
What a $60,000 vest costs in Washington
A single filer already earning $180,000 in salary. The vest stacks on top of that, so it fills the highest brackets rather than starting at the bottom:
| Withheld by your employer at 22.0% | $13,200 |
| True federal tax on the vest | $16,170 |
| Federal shortfall, owed in April | $2,970 |
| Washington income tax on the vest | none |
| Total still to find | $2,970 |
The withholding rate is flat, 22.0% below $1 million of supplemental pay. And takes no account of your salary. That is why the gap grows the more you earn.
The gap widens with salary
| Salary | Withheld | Owed | Shortfall | Washington tax |
|---|---|---|---|---|
| $90,000 | $13,200 | $13,764 | $564 | $0 |
| $160,000 | $13,200 | $14,570 | $1,370 | $0 |
| $260,000 | $13,200 | $20,630 | $7,430 | $0 |
How Washington treats a vest
Washington has no personal income tax, so a vest is a federal-only event here, $16,170 of federal tax on $60,000 of vesting stock, and nothing to the state.
Washington specifics that change the number
On the 2026 rate itself: no general income tax. Capital gains tax 7% on gains >$262,000 (2026), 9.9% on gains >$1M.
Washington is a community property state. In community property states, income earned during marriage is generally owned equally by both spouses. This affects QJV eligibility, MFS filing strategies, and retirement account contribution rules.
Washington is the big exception among no-income-tax states: its business and occupation (B&O) tax is a gross receipts tax, on revenue, not profit, with no deduction for expenses, from the first dollar. For services the rate is 1.5% when prior-year receipts are under $1,000,000 (1.75% from $1,000,000, 2.1% from $5,000,000); retailing is 0.471%. Two reliefs matter for small operators: you only need to register with the Department of Revenue once gross income reaches $12,000 a year, and the small business credit wipes out B&O liability below $3,840 a year for service businesses filing annually.
Washington also taxes long-term capital gains: 7% above the standard deduction ($278,000 for 2025, inflation-adjusted), and 9.9% on taxable gains above $1,000,000 under the 2025 law. It reaches individuals, including gains flowing through an LLC or S-corp.
What the same vest costs around Washington
Total income of $240,000 in the states Washington borders:
| State | Its tax | vs Washington |
|---|---|---|
| Idaho | $12,720 | +$12,720 |
| Oregon | $19,708 | +$19,708 |
- Idaho would take $12,720 more, $12,720 against Washington's $0.
- Oregon would take $19,708 more, $19,708 against Washington's $0.
RSU questions in Washington
Should I sell at vest?
Selling immediately raises the cash for the $2,970 you still owe and leaves no capital gain, because the sale price equals the price you were already taxed on. Holding turns it into an investment decision, any further gain is a capital gain, and any fall is a loss you take on shares you were already taxed on at the higher value.
I moved to Washington mid-vest, who taxes it?
Both states, split by workdays. The income is allocated across the vesting period, not assigned to wherever you happened to live on the vesting date. The state you left can still claim its share, and California, New York and Massachusetts pursue it hardest.