What Is The Washington State Estate Tax Rate? Inheritance Tax?

What is the Washington state estate tax rate? Inheritance tax?

A common question we receive is: Does Washington State have an inheritance tax or probate tax?

In the law, words matter.  Therefore, as your read the answers and responses below, the end result might feel the same (i.e. pay a tax); but how you arrive at the result is technically different (what or who pays the tax).

I have found what people really want to know is: “If someone dies, is there ANY tax that has to be paid to the State of Washington?”

I’m going to give you the good news before your read the bad news below: The good news is that with a little bit of forethought and planning, most people can use the allowed exemptions and shelter their assets from Washington Estate Tax.

 However, you have to do things the right way with an estate planning attorney and tax professional who knows what they are doing.  Spending a little bit of money now can save you A LOT of money in the future. The Law Offices of Christopher A. Benson, PLLC offers a free initial consultation regarding estate planning matters.

This article contains a separately dated 2026 update followed by a historical 2014 reference. Statutory and IRS authorities are linked where discussed. Older Department of Revenue references are retained in the historical section.

Washington State Inheritance Tax Questions

Does the state of Washington have an inheritance or estate tax?

Washington does not have an inheritance tax. Washington does have an estate tax.

During a general election in November 1981, the voters repealed an inheritance tax and enacted an estate tax. The change from an inheritance tax to an estate tax became effective January 1, 1982. Due to this change, Washington no longer has an inheritance tax waiver.

In general terms, an inheritance tax is a tax on the beneficiaries of an estate whereas an estate tax is a tax on the decedent’s estate.

If you are a person living in Washington who inherits property or money, you do not owe Washington taxes on your inheritance.

2026 Washington Estate Tax Update

Rules summarized as of October 24, 2026. The historical 2014 reference is retained separately below.

Use The Date Of Death

The decedent’s date of death determines the applicable Washington exclusion amount and rate schedule, not the date the estate files its return. There are two different periods within 2026 under RCW 83.100.020 and RCW 83.100.040:

The higher rate schedule began with deaths on July 1, 2025 and ended with deaths on June 30, 2026. The original 10% to 20% schedule shown in the historical table below returned for deaths on or after July 1, 2026. That return to the earlier rates did not restore the 2014 exclusion or filing rules.

These are graduated rates, not a flat percentage of the entire gross estate. The statutory schedule uses a base tax plus a marginal rate on the portion of the Washington taxable estate above a bracket threshold. Washington taxable estate reflects the exclusion and applicable deductions and adjustments; it is not simply the gross estate value. Property outside Washington may also require apportionment under RCW 83.100.040(2)(b).

For dates of death in 2027 and later years, the statute provides an annual adjustment formula subject to its stated limits. Check the amount applicable to the actual date of death rather than assuming that either 2026 amount applies to every later year.

When A Washington Return Is Required

For a 2026 estate subject to Washington’s filing rules, the general rule is that a return must be filed when the gross estate equals or exceeds the applicable exclusion amount. A return can be required even when deductions leave no tax due. Apply the filing rule to the gross estate, not to the amount remaining after deducting the exclusion. See RCW 83.100.050.

A Limited Filing Exception For A Qualifying Family Residence

For deaths on or after January 1, 2025, RCW 83.100.050(7) provides a limited exception from filing when all of these conditions are met:

• The estate is not otherwise required to file a return to claim a specific election.
• The decedent was survived by a spouse, and the decedent’s qualifying family residence included in the gross estate passed to that spouse consistently with the federal marital-deduction rules.
• The gross estate, less the value of the decedent’s interest in that qualifying residence included in the gross estate, is below the applicable exclusion amount.

The statutory residence and occupancy requirements must also be satisfied. The statute includes a separate long-term-care alternative with additional conditions. Do not subtract the entire home’s value if only a partial interest was included in the decedent’s gross estate. This is a conditional filing exception, not a blanket exemption for every home or every transfer to a surviving spouse.

Filing And Payment Deadlines

For a required Washington return, the filing deadline generally follows the actual or hypothetical federal estate tax return deadline, usually nine months after death. The state rule is in RCW 83.100.050, and the federal timing rule is in 26 U.S.C. section 6075(a).

An extension of time to file does not by itself extend the time to pay Washington estate tax. Payment extensions and installment elections have separate requirements under RCW 83.100.060. Review both deadlines early rather than assuming that a filing extension also postpones payment.

Federal Estate Tax And Portability

The federal basic exclusion amount for 2026 is $15,000,000, which is not the Washington exclusion. For a U.S. citizen or resident decedent, the federal mandatory-filing test adds the gross estate, adjusted taxable gifts and the specific exemption and compares that total with $15,000,000. A total greater than that amount generally requires Form 706.

A return may also be needed below that amount to elect portability of a deceased spouse’s unused exclusion for the surviving spouse. The 2026 Form 706 instructions explain those rules and filing deadlines.

A federal filing does not by itself determine whether a Washington return is required under current Washington law. If a Washington return is required and a federal estate tax return has been filed, include a copy with the Washington filing, as required by RCW 83.100.050(4). Review state and federal filing decisions separately; do not assume that one exclusion or one election resolves both.

Related Planning Information

For related reading, see our estate planning overview and our discussion of federal estate tax portability and Form 706. The date of death, ownership of assets, prior gifts, available deductions and election requirements can affect the analysis. An attorney and tax professional can help review the rules for the particular estate.

Historical 2014 Washington Estate Tax Reference

The earlier discussion is retained below as historical context. The 2014 filing rules and exclusion amounts are not a filing guide for a 2026 estate. Use the separately dated 2026 update above for those current rules.

What Were The Washington Estate Tax Rates In 2014?

For deaths during 2014, the tax rates ranged from 10 percent to 20 percent of the Washington taxable estate. The taxes were calculated on a graduated scale; each range was taxed at a different rate. The original table below retains the 2014 rates and brackets, as reflected in the 2014 Department of Revenue rule.

Historical Table W: For Dates Of Death During 2014

Note: The Washington taxable estate is the amount after all allowable deductions, including the applicable exclusion amount.

How do I know what the Washington taxable estate is?

To determine the Washington taxable estate, take the gross estate and subtract any allowable expenses and deductions. The allowable expenses and deductions include such items as the decedent’s funeral expenses, costs of administering the estate, any debts of the decedent (mortgages, liens, outstanding bills), bequests to a spouse, gifts to charity, the farm deduction (if eligible), the qualified family-owned business interests deduction (if eligible) and the applicable exclusion amount.

What is the estate tax?

The estate tax is a tax on the right to transfer property at the time of death. A person residing in Washington or a non-resident who owns property in Washington may owe an estate tax depending on the value of their estate.

Who Had To File A Washington Estate Tax Return Under The 2014 Rules?

The 2014 version of RCW 83.100.050 required a Washington return when the gross estate exceeded $2,000,000 or when a federal estate tax return was required. Those were separate filing triggers. An estate below the $2,000,000 gross-estate amount could still have a Washington filing obligation if a federal return was required.

A filing obligation could exist even when no Washington estate tax was due. Do not replace this historical rule with today’s filing threshold or apply the current family-residence exception to a 2014 death.

Historical 2014 Filing Test And Exclusion Amount

The filing test and the exclusion used to calculate tax were different measures in 2014:

Historical sources: 2014 RCW 83.100.050 and the 2014 Department of Revenue rule. This table is not a current filing-threshold table and does not apply the 2014 amounts to later years.

How The Historical 2014 Exclusion Worked

For 2014 deaths, the applicable exclusion amount was $2,012,000. The law then provided annual inflation adjustments to the $2,000,000 exclusion base using the specified October Seattle-area consumer price index, rounding to the nearest $1,000 and preventing a downward adjustment. See the 2014 exclusion and adjustment rule.

The exclusion was used in calculating Washington taxable estate; it was not the same as the separate $2,000,000 gross-estate filing test then in force. Later legislation changed the rules. The historical amounts and adjustment description should not be used in place of the separately dated 2026 information above.

What assets should be included in the estate? Is it different for a married couple?

All assets owned by the decedent on the date of death should be included in the estate. All assets, even if located in another state, should be reported on the estate tax return (see the Estate Tax Apportionment for Out of State Property page).

For the estate of a married decedent, all of the community property and all of the decedent’s separate property are reported on the estate tax return. The community property assets are then reduced by 50% to reflect the decedent’s share of the property.

Historical 2014 filing note: A transfer to a surviving spouse did not by itself eliminate a filing obligation under the separate 2014 filing triggers described above. Do not use this historical discussion in place of the 2026 filing rule and its conditional qualifying-family-residence exception.

Do I have to include out of state property on the estate tax return?

Yes. All property owned by a decedent must be included on the estate tax return. Once the estate tax is calculated on the entire estate, as if all property is in Washington, then a calculation is done to apportion the tax between the Washington property and the out of state property.

The decedent’s state of domicile at the time of death is what determines if property is in state or out of state property. For a Washington domiciled decedent any tangible personal property located outside of Washington and any real property located outside of Washington are considered out of state property.

For an out of state domiciled decedent all intangible property, any tangible property located outside of Washington and any real property located outside of Washington are considered out of state property.

A decedent’s share of property or interest in a limited liability company (LLC), limited liability partnership (LLP), corporation, or other type of business entity, operating for a true business purpose, is considered an intangible asset and is allocated to the state of domicile.

When one of these types of entities is used simply to hold property and does not operate for a true business purpose, then the location of the property is used to determine whether it is in state or out of state property.

For more details see the Estate Tax Apportionment for Out of State Property page.

How do I value the assets in the estate?

All assets owned by a decedent are valued at their actual value or fair market value for the valuation date.

The “actual value” of an asset is its cash value or unpaid principal plus any interest accrued to the valuation date.

The “fair market value” is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

The fair market value would be a sale in an arm’s-length transaction and never determined by a forced sale. Fair market value for a business entity would include any goodwill inherent in the business. For most stocks and bonds the fair market value is the mean between the highest and lowest selling prices quoted on the valuation date.

The “valuation date” is the date of death of the decedent. However, an alternate value date (six months after the date of death) may be elected; see the instructions for the estate tax return to determine if alternate value may be elected for an estate.

When filing the estate tax return, be sure to include all supporting documentation showing the actual or fair market value. Supporting documentation can include, but is not limited to, real estate appraisals, date of death brokerage statements, and business appraisals.

Source http://dor.wa.gov/Content/FindTaxesAndRates/OtherTaxes/tax_estatetaxfaq.aspx#rates2014

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There is a lot more to quality estate planning than you might think.  Many years of experience is usually very beneficial.

Over the past 35 years, the Law Offices of Christopher A. Benson has helped over 5,000  clients take control of their financial situation, develop a quality estate plan, protect their assets for their heirs and gain Peace of Mind. Call (253) 815-6940 to set up your free initial consultation for estate planning today.