Washington Capital Gains Calculator

Calculate your federal and Washington capital gains tax liability

2025

Calculate Your
Washington Capital Gains Tax

Washington imposes a 7% tax on long-term capital gains from financial assets exceeding an annual threshold (approx. $272k for 2025). Real estate is fully exempt.

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Washington Capital Gains Tax Highlights

Flat 7% tax on gains over threshold
High exemption threshold (inflation adjusted)
Real estate is completely exempt
y

Enter Your Investment Details

Calculate your capital gains tax for Washington

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📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.

📊 Choose your investment holding period

Calculator optimized for Washington tax rates

Tax Calculation Results

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
Washington Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

How Washington Taxes Capital Gains

Washington imposes a 7% tax on long-term capital gains from financial assets exceeding an annual threshold (approx. $272k for 2025). Real estate is fully exempt.

Exempt Assets

The following assets are exempt from capital gains tax in Washington: real-estate, retirement-accounts, livestock, timber, certain small businesses

2025 Tax Brackets

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

Washington Tax Details

Tax Rate Structure

Washington provides preferential treatment for certain types of capital gains.

Key Requirements

Exemption Threshold: $272,000
Filing Required: If gain exceeds threshold
State Due Date: April 15

Washington Tax Strategies

  • • Consider timing of asset sales for tax efficiency
  • • Coordinate with federal capital gains strategies
  • • Review loss harvesting opportunities

• Consult with Washington tax professional for complex situations

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Real Estate in Washington

Real estate capital gains in Washington are subject to both federal and state tax considerations:

Real Estate Exemption

Real estate transactions are specifically exempt from Washington capital gains tax, providing significant tax advantages for property investors.

Primary Residence

Federal Rules

Federal Exclusion: $0K/$0K
Holding Period: N/A

Washington State Rules

✓ Real estate gains fully exempt

No state filing required for real estate

Additional Requirements:
  • • Real estate is EXEMPT from WA capital gains tax.
  • • Only federal rules and the Real Estate Excise Tax (REET) apply.

Investment Property

Tax Deferral Strategies

1031 Like-Kind Exchanges

Defer federal taxes on investment property exchanges

1031 Conformity: ✓ Yes
Bonus Depreciation: ✓ Allowed

Transfer Costs

Transfer Tax

State Rate: Tiered rates from 1.1% to 3.0% (Real Estate Excise Tax - REET)
Paid By: seller
Local Variations:
  • • Some cities and counties add their own small, flat fee REET.
Available Exemptions:
  • • Gifts
  • • Certain family transfers
  • • Divorce.

Recording Fees

Deed Recording: $203.50 for the first page, $1 for each additional page.
Mortgage Recording: $203.50 for the first page, $1 for each additional page.
Additional Fees:
  • • High, uniform recording fees statewide.
Special Deductions & Notes:
  • • Real estate is completely exempt from WA capital gains tax.

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Property Tax Exemptions

Homestead

$125K

Maximum exemption

Senior (65+)

$0K

Additional exemption

Washington Real Estate Specifics

• Real estate is 100% EXEMPT from Washington's 7% capital gains tax.

• Real estate sales are subject to the Real Estate Excise Tax (REET), a tiered tax with rates up to 3%, which functions as the state's transfer tax.

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Washington Filing Requirements

Due Dates
Annual Return: April 15
Extension: October 15
Quarterly Est.:
January 15
April 15
June 15
September 15
Required Forms
  • • Form WA Capital Gains Tax Return
  • • Schedule A, B, and D
  • • Federal Form 8949 & Schedule D
Payment Options
  • • Online payment portal
  • • Electronic funds transfer
  • • Check or money order

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Compare Washington to Other States

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.