Cost of Living in Washington
Things cost about ▲ 7% more in Washington than the national average.
What Things Cost in Washington
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Washington has no state income tax, a massive tech economy anchored by Amazon, Microsoft, and Boeing, and a cost of living that ranges from very expensive (Seattle, Bellevue) to quite affordable (Spokane, Tri-Cities). The statewide average sits about 10% above the national mean, but the Seattle metro drives that number: median home prices in Seattle exceed $800,000. Tacoma, just 30 miles south, offers a substantially lower cost of living while maintaining access to the same Puget Sound lifestyle. The state's combination of no income tax, high tech salaries, and natural beauty (Cascades, San Juan Islands, Olympic Peninsula) creates a compelling package for earners who can absorb the housing costs.
Washington at a Glance
Taxes in Washington
Washington has no state income tax. That's money in your pocket that residents of most other states don't keep. The combined sales tax averages 6.5%. Property taxes run about 0.84% of home value, which on a $560,000 median home means roughly $4,704/year.
Cities in Washington
Ranked from least to most expensive. Index 100 = national average.
Explore Washington
FAQ About Washington
Significantly. Tacoma's median home price is roughly $500,500 compared to Seattle's $950,800+. Rental costs are also substantially lower. Tacoma has its own downtown, waterfront, museum district, and growing restaurant scene. The commute to Seattle is about 30-45 minutes by car or train (Sound Transit). For someone working remotely or commuting occasionally, Tacoma offers most of the Puget Sound lifestyle at a much lower price point.
Washington has no state income tax on wages, salaries, or most other income. It does levy a 7% tax on capital gains above $270,000 (excluding real estate and retirement accounts). The state funds itself through sales tax, property tax, and the B&O (Business & Occupation) tax on businesses. For someone earning a tech salary of $150,000+, the zero income tax saves $7,000 to $15,000 per year compared to California or Oregon.
Yes. Spokane's cost of living is below the national average, and median home prices are around $379,300, less than half of Seattle's. The city has four distinct seasons, access to skiing, lakes, and hiking, and a growing downtown. It is on the east side of the Cascades, so the climate is drier and sunnier than Western Washington. For remote workers who want Washington's no-income-tax benefit without Seattle's housing costs, Spokane is an increasingly popular choice.