Is real estate subject to the Washington capital gains tax?

No. Real estate is 100% exempt from the Washington State capital gains tax. Sales of residential and commercial property are instead subject to the Washington Real Estate Excise Tax (REET).

Are retirement accounts like 401(k) and IRAs taxed under this statute?

No. All assets held in statutory retirement accounts (such as 401k, 403b, Traditional and Roth IRAs, and defined benefit pensions) are completely exempt.

USAUpdated for 2026Taxes

Washington State Capital Gains Tax Calculator 2026

Calculate Washington State's statutory 7.0% excise tax on net long-term capital gains exceeding the annual standard deduction ($270,000 threshold), including statutory exemptions for real estate and retirement accounts.

Taxes & Duties Investment & Assets Finance & Investment

Calculated Result

Washington Capital Gains Tax Due (7%)

$15,400

Calculator Inputs

Total Net Long-Term Capital Gains (Stocks/Bonds/Crypto/Assets)

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Exempt Gains (Real Estate, 401k/IRA, Family Business)

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Washington Capital Gains Tax Due (7%)

$15,400

Effective WA Capital Gains Tax Rate

2.57 %

Net Taxable Gains Subject to 7% Tax

$220,000

Capital Gains After Real Estate/Retirement Exemptions

$500,000

WA Statutory Standard Exemption ($270k)

$270,000

Allowed WA Charitable Donation Deduction

$10,000

Retained Capital Gains After WA Tax

$584,600

Washington State imposes a 7.0% tax strictly on net long-term capital gains in excess of the statutory standard deduction. Real estate, retirement assets (401k/IRA), and qualified family-owned businesses are completely exempt.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: Washington Revised Code (RCW 82.87 - 7.0% Tax on Long-Term Capital Gains & Statutory Standard Deduction)Last Verified: 2026-09-04

Calculation Methodology

Taxable WA Capital Gains = max(0, Adjusted Long-Term Gains - Statutory Standard Deduction ($270,000) - Charitable Deduction). WA Capital Gains Tax = Taxable WA Gains * 7.0%.

Frequently Asked Questions

Washington levies a 7.0% excise tax on net long-term capital gains from the sale or exchange of stocks, bonds, and other personal property exceeding the inflation-adjusted standard deduction ($270,000 for 2026).

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Washington State Capital Gains Tax Calculator 2026

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Calculation Methodology

Frequently Asked Questions

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