How Washington compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | WA | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 8,001,020 | 13th highest of 50 | 2 of 11 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 895 | 9th highest of 50 | 2 of 11 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $99,389 | 7th highest of 50 | 3 of 11 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 4.8% | 45th lowest of 50 | 9 of 11 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 16.1% | 10th highest of 50 | 4 of 11 |
| Property tax ratechecked Nov 2026; confirm with the Washington legislature | 0.87% | 24th lowest of 50 | 10 of 11 |
| Deposit return window (days)checked Nov 2026; confirm with the Washington legislature | 30 | tied 15th lowest of 50 | 6 of 11 |
| Eviction notice (days)checked Nov 2026; confirm with the Washington legislature | 14 | tied 6th highest of 50 | 2 of 11 |
| Final pay deadline (days)checked Nov 2026; confirm with the Washington legislature | 0 | tied 1st lowest of the 29 states that set one | 1 of 5 |
- State income tax: no9 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Washington apart
- Paid sick leave required: yes20 of 50 states answer the same way
- Paid family leave: yes12 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Washington legislature.
What's changing in Washington
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2027
- January 1, 2027Residential rent-increase cap is 10% for 2027
HB 1217: 7% + CPI, capped at 10% (9.683% in 2026); 90 days' notice; no increase in the first 12 months.
Source ↗ - June 30, 2027Near-total ban on non-compete agreements (ESHB 1155)
Reaches existing agreements; employers must tell workers in writing that their covenants are void.
Took effect in the last 12 months
- January 1, 2026Minimum wage rose to $17.13/hrSource ↗
Checked against official sources on 2026-11-05.
How long you have in Washington
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 30 days
- Eviction notice before filing
- 14 days
- Final paycheck within
- 0 days
- LLC formation processed in
- 2—3 business days (online)
- Annual report due
- Annually by the last day of the month of the LLC's anniversary
- Overtime starts after
- 40 hours/week (FLSA)
AI Legal Insights — Washington
AI-generated · Updated July 2026
Washington operates under an at-will employment doctrine, but it is heavily regulated by robust worker protection statutes, including mandatory paid sick leave and paid family leave. The state's legal landscape is shaped by progressive consumer protection laws and a judiciary that frequently addresses complex environmental and technology-sector regulations.
Washington offers a highly competitive environment for tech and aerospace industries, bolstered by the absence of a state personal income tax. While the business climate is favorable for growth, companies must navigate a high average sales tax and specific payroll tax requirements for state-mandic<pad> programs.
Washington is home to a significant foreign-born population of 14.7%, contributing to a diverse workforce across major hubs like Seattle. The state maintains a supportive environment for immigrant communities through various state-level protections and access to public services regardless of status.
- ›Ensure compliance with the Washington Minimum Wage Act, as state-specific wage and hour laws often supersede federal standards.
- ›Include clear choice-of-law provisions, as Washington courts strictly interpret non-compete agreements under the noncompete covenant statutes.
- ›Account for the state's specific sales and use tax application when drafting service agreements to avoid unexpected tax liabilities.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
Washington labor regulations
Washington has some of the strongest worker protections in the country. The state minimum wage is $17.13/hr as of January 1, 2026 and rises to $17.73/hr on January 1, 2027; several cities, including Seattle ($22.14/hr in 2027), set higher local rates. All employers must provide paid sick leave, and the state Paid Family and Medical Leave program pays benefits for up to 16 weeks a year (18 with pregnancy complications). Workers' compensation is run by the state Department of Labor & Industries (L&I), and a near-total ban on non-compete agreements takes effect June 30, 2027.
| Law | WA Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $17.13/hr (since Jan 1, 2026); $17.73/hr on Jan 1, 2027; CPI-indexed annually; higher local rates in Seattle and some other cities | $7.25/hr |
| Overtime | After 40 hrs/week at 1.5× rate; agricultural workers also covered by state overtime rules | FLSA: after 40 hrs/week |
| Paid Sick Leave | 1 hr per 40 hrs worked; no employer-size threshold; unused hours up to 40 carry over | None (federal) |
| Paid Family & Medical Leave | Up to 12 weeks family or 12 weeks medical leave, 16 weeks combined (18 with pregnancy complications); up to 90% of wages, subject to a weekly cap; funded by payroll premiums | FMLA: 12 weeks unpaid |
| Workers Comp | Mandatory; state-run through L&I (private insurers not allowed; large employers may self-insure) | Federal employees: yes |
| At-Will Employment | Yes, subject to strong anti-discrimination and whistleblower exceptions | Default nationwide |
| Final Paycheck | By the end of the established pay period | Next regular payday |
| Meal & Rest Breaks | 30-min meal break for shifts over 5 hrs; 10-min paid rest break per 4 hrs worked | No federal meal break requirement; short breaks must be paid if provided |
| Non-Compete Agreements | Currently void for employees below an annually adjusted earnings threshold (over $120,000); near-total ban from June 30, 2027, including existing agreements | No general federal ban |
- The Washington Law Against Discrimination prohibits discrimination based on race, sex, sexual orientation, gender identity, age (40+), disability, marital status, and other protected classes, and allows private lawsuits.
- From June 30, 2027, ESHB 1155 makes nearly all non-compete agreements void, including agreements signed earlier; employers must tell affected workers in writing that their covenants are void.
- Until then, non-competes are void for employees earning below an annually adjusted threshold and must be disclosed to job applicants no later than the time of the offer.
- Employers with fewer than 50 employees in Washington are not required to pay the employer share of PFML premiums, but must still collect and remit employee premiums.
- App-based drivers, domestic workers, and agricultural workers have specific protections under Washington law that go beyond the FLSA.
- Seattle and several other cities have higher local minimum wages and additional rules, such as Seattle's secure scheduling ordinance for large retail and food service employers.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Washington rental regulations
Washington's Residential Landlord-Tenant Act (RLTA) governs most residential tenancies. Since May 7, 2025, HB 1217 caps annual rent increases at 7% plus inflation, up to 10% (9.683% for 2026 and 10% for 2027), and requires 90 days' notice of any increase. There is no statutory cap on security deposits, but deposits must be held in trust and returned with an itemized statement. Landlords need one of the "just cause" reasons in state law to end most tenancies.
| Topic | WA Rule |
|---|---|
| Security Deposit | No statutory limit; must be held in a trust account; a written rental agreement and move-in condition checklist are required to collect a deposit |
| Deposit Return | Within 21 days of move-out, with an itemized statement of deductions; a landlord who fails to comply can lose the right to keep any of the deposit |
| Rent Increase Cap (HB 1217) | Increases capped at 7% + CPI, max 10% per year (9.683% in 2026; 10% in 2027); no increase in the first 12 months; buildings under 12 years old exempt; manufactured-home lots capped at 5% |
| Rent Increase Notice | At least 90 days' written notice before any rent increase |
| Local Rent Control | Cities and counties still may not adopt their own rent control; the statewide cap applies instead |
| Eviction Notice (Non-Payment) | 14-day written pay-or-vacate notice in the state-required form; tenants may be eligible for legal representation and rental assistance resources |
| Just Cause Eviction | Landlords must have one of the reasons listed in state law (such as non-payment, lease violations, owner move-in, or sale) to end most tenancies, with specified notice periods |
| Habitability | Landlord must keep the unit fit for habitation; after written notice, tenants may use repair remedies within statutory limits if the landlord fails to act |
Both landlords and tenants have enforceable rights under Washington law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Washington LLC formation guide
Washington has no personal or corporate income tax on wages and profits, but businesses pay the Business & Occupation (B&O) tax on gross receipts regardless of profit, at rates that vary by activity. The state sales tax is 6.5%, averaging about 9.51% with local taxes. Washington also taxes long-term capital gains at 7%, plus 2.9% on gains over $1 million. Forming an LLC costs $200 online, and the annual report is $70. Washington has about 696,000 small businesses, employing 48.7% of the private workforce.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC", "L.L.C.", "Limited Liability Company", or an abbreviation; check availability at ccfs.sos.wa.gov
- 2Designate a registered agent — must have a physical Washington street address and be available during business hours
- 3File a Certificate of Formation with the Washington Secretary of State online at ccfs.sos.wa.gov
- 4Pay the $200 filing fee (online filings are typically processed in 2–3 business days)
- 5Get an EIN from the IRS — free at irs.gov
- 6Apply for a Washington business license through the Department of Revenue's Business Licensing Service to get your UBI number and register for B&O and sales tax; add city endorsements where required
- 7If you hire, register with the Employment Security Department (unemployment and PFML premiums) and L&I (workers' compensation)
- 8File the annual report ($70) with the Secretary of State by the last day of your anniversary month
- 9Open a business bank account with your EIN and Certificate of Formation
- 10Check local requirements — Seattle and some other cities have their own business license tax and B&O tax
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Washington taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
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Federal Offices
United States government offices in Washington
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
Washington legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Washington residents.
Free civil legal services for low-income King County residents
Statewide civil legal aid across Washington State
Referral service and reduced-fee legal help in eastern Washington
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