Compare taxes and see how much you save moving from California to Washington
Moving from California to Washington eliminates state income tax entirely, saving $5,762 annually at $100,000 income. However, Washington's tax structure includes a 7% capital gains tax on gains over $250,000 (2026 threshold), significantly higher sales tax (combined ~10% vs ~8%), and higher property tax rates. California offers Prop 13 property tax protection, while Washington does not cap increases. The decision depends on your income sources, investment portfolio, and homeownership status.
Highest in Nation
Progressive 1-13.3% on all income; aggressive FTB enforcement
No Income Tax
No income tax, but 7% capital gains tax on $250K+ gains (2026)
At $100,000 income:
That is $480/month back in your pocket!
| Income | CA Tax | WA Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $1,711 | $0 | $1,711 | $17,110 |
| $75,000 | $3,349 | $0 | $3,349 | $33,490 |
| $100,000 | $5,762 | $0 | $5,762 | $57,620 |
| $150,000 | $10,991 | $0 | $10,991 | $109,910 |
| $250,000 | $22,471 | $0 | $22,471 | $224,710 |
| $500,000 | $50,243 | $0 | $50,243 | $502,430 |
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Moving from California to Washington? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →At $100,000 income, you save $5,762 per year in state income tax. At $150,000, savings reach $10,991 annually. Over 10 years, a $100K earner keeps $57,620 more in Washington. However, you'll pay more in sales tax (~$500-800/year more on $50K spending) and potentially more in property tax depending on home value and how long you owned your California home under Prop 13.
Washington's 7% capital gains tax only applies if your annual long-term capital gains exceed $250,000 (2026 threshold, indexed for inflation). It does NOT apply to: retirement account withdrawals (IRA, 401k), primary home sales, or most small business sales. If you have $300K in gains, only $50K is taxed ($3,500 tax). Most people are not affected. Compare this to California, which taxes ALL capital gains at up to 13.3%.
California can and does pursue former residents aggressively. To establish Washington residency: (1) Get a Washington driver's license within 30 days, (2) Register to vote in Washington, (3) Sell or rent out your California home, (4) Spend less than 45 days per year in California going forward, (5) Update your mailing address, bank accounts, and professional licenses. Keep detailed records of your time in each state. California may still tax California-source income (rental properties, business income from CA operations).
Washington's average effective property tax rate is 0.93% vs California's 0.74%. However, California's Prop 13 caps annual increases at 2% as long as you own the property, while Washington has no such cap. If you've owned a California home since 2010, your property tax may be far below market rate. In Washington, your property tax will rise with market values. For new buyers, the difference is smaller. On a $600K home: Washington = $5,580/year, California = $4,440/year.
Both are major tech hubs. Washington (Seattle: Amazon, Microsoft, Meta satellite offices) offers zero income tax on salaries, saving high earners $10K-50K/year. California (Bay Area: Google, Apple, Nvidia, thousands of startups) has more opportunities but taxes all income at up to 13.3%. For a $200K tech salary, Washington saves $18,000/year. However, Bay Area total compensation is often higher, and stock-heavy comp packages face California's punishing capital gains tax.
Washington's average combined sales tax rate is 9.38% (Seattle: 10.35%) vs California's 8.68% (San Francisco: 8.625%). If you spend $50,000/year on taxable goods, you'll pay about $700/year MORE in sales tax in Washington. This partially offsets income tax savings. Washington relies heavily on sales tax for revenue since it has no income tax. Both states exempt groceries but tax prepared food and restaurants.
Yes, significantly. Washington does not tax Social Security, pensions, IRA withdrawals, or 401k distributions. California taxes all retirement income at the full 1-13.3% rate. A retiree with $80K in pension/IRA income pays $0 in Washington but $4,418 in California. However, Washington's estate tax (on estates over $2.193M at 10-20%) can be punishing for wealthy retirees, while California has no estate tax. Property tax can also be deferred in Washington for seniors with income under $50K.
Washington is vastly superior. RSUs vest as ordinary income: Washington = $0 tax, California = up to 13.3%. When you sell vested shares, long-term capital gains: Washington = 7% only on gains over $250K/year, California = 13.3% on ALL gains. A tech worker with $150K base + $100K RSUs + $50K capital gains saves approximately $24,000/year in Washington. California's tax treatment of equity comp is one of the main drivers of tech worker migration to WA and TX.