Data Source and Methodology
- Washington Department of Revenue — “Taxes not collected in Washington” (no personal income tax on wages). Updated link: https://dor.wa.gov/taxes-rates
- WA Employment Security Department (PFML) — 2024 premium rate: total 0.74%; employee share 71.43%. https://paidleave.wa.gov/premiums/
- WA Cares Fund (Long-Term Care) — premium 0.58% of wages. https://wacaresfund.wa.gov/
- Social Security Administration — 2024 OASDI (Social Security) wage base = $168,600; rate 6.2%. SSA 2024 wage base
- IRS — Medicare rate 1.45% plus Additional Medicare 0.9% over $200,000 (withholding threshold). IRS Additional Medicare Tax
All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
State income tax on wages in WA:
\\[ \mathrm{WA\ State\ Income\ Tax} = 0 \\]
WA Cares (if not exempt):
\\[ \mathrm{WA\ Cares} = 0.0058 \times W \\]
PFML employee share (enter current rate p%):
\\[ \mathrm{PFML}_{emp} = \frac{p}{100} \times W \\]
Total WA payroll contributions:
\\[ \mathrm{WA\ Total} = \mathrm{WA\ Cares} + \mathrm{PFML}_{emp} \\]
Optional FICA (federal payroll taxes):
\\[ \mathrm{SS} = 0.062 \times \min(W, B) \\quad \text{with } B=168{,}600 \\]
\\[ \mathrm{Medicare} = 0.0145 \times W + 0.009 \times \max(0,\ W-200{,}000) \\]
Net after WA programs:
\\[ \mathrm{Net}_{WA} = W - \mathrm{WA\ Total} \\]
Net after WA + FICA (optional):
\\[ \mathrm{Net}_{All} = W - \mathrm{WA\ Total} - \mathrm{SS} - \mathrm{Medicare} \\]
Per-period amounts use a periods-per-year factor \\( N \\in \{1, 12, 26, 52\} \\) and divide accordingly.
Glossary of Terms
- W (Annual wages): Total yearly gross wages subject to withholding.
- WA State Income Tax: Tax on wages at the state level (Washington = $0).
- WA Cares: State long-term care program premium (0.58% of wages unless exempt).
- PFML employee rate (p): Employee share of Paid Family & Medical Leave premium as a percent of wages.
- WA Total: Sum of WA Cares and PFML employee contributions.
- Social Security (SS): Federal payroll tax at 6.2% up to the annual wage base.
- Medicare: Federal payroll tax at 1.45% on all wages plus 0.9% over $200,000.
- Net after WA: Wages minus WA payroll programs.
- Net after WA + FICA: Wages minus WA programs and FICA (federal).
How It Works: A Step-by-Step Example
Assume: W = $90,000; WA Cares applies; PFML employee rate p = 0.529%; frequency = monthly.
- WA Cares = 0.0058 × 90,000 = $522.00
- PFML = 0.00529 × 90,000 = $476.10
- WA Total = 522.00 + 476.10 = $998.10
- Net after WA = 90,000 − 998.10 = $89,001.90
- Per month ≈ $89,001.90 ÷ 12 = $7,416.83
If you also include FICA: SS = 6.2% × 90,000 = $5,580.00; Medicare = 1.45% × 90,000 = $1,305.00; Net after WA + FICA ≈ $82,116.90 (≈ $6,843.08/month).
Frequently Asked Questions (FAQ)
- Does Washington tax my wages at the state level?
- No. Washington does not have a personal income tax on wages. Your WA state income tax is $0.
- What is the WA Cares (long-term care) rate?
- 0.58% of wages, typically paid by employees unless an exemption is approved by the state.
- What PFML rate should I enter?
- The PFML total premium and employee share can change annually. For 2024 the employee portion is approximately 0.529%. Check the official PFML premiums page for current rates.
- Are there wage caps?
- WA Cares and PFML are not capped like Social Security. Social Security is capped at the annual wage base ($168,600 for 2024).
- Is Medicare capped?
- No. Medicare is 1.45% on all wages plus an additional 0.9% on wages over $200,000 (withholding threshold).
- Why does my paycheck still have “taxes” in Washington?
- Even without a state income tax, you will see federal payroll taxes (FICA) and WA payroll programs (WA Cares, PFML) on pay stubs.
- How do I claim a WA Cares exemption?
- Only with a state-approved exemption letter. Provide it to your employer; then the WA Cares premium should not be withheld.