California vs Washington taxes

Where the difference comes from

Neither state leaves wages untouched. California withholds SDI at 1.3% of every dollar. Washington withholds two premiums: paid family and medical leave, capped at $184,500 of wages, and WA Cares at 0.58% of every dollar with no cap. On $75,000 Washington’s two come to $1,040 and California’s SDI to $975. Washington’s premiums are the larger of the two until wages reach about $207,000, a little above the point where its paid leave premium stops.

So the payroll lines nearly cancel, and the gap is California’s income tax. On $75,000 California charges $2,775 and a single filer keeps $2,709 more in Washington. On $150,000 the two figures are $9,705 and $9,574; on $250,000, $19,005 and $19,316.

Washington’s advantage grows at the pace of California’s rates, which reach 9.3% at $72,724 of taxable income and keep climbing. The overall effective rate on $150,000, federal taxes included, is 31.9% in California and 25.5% in Washington.

Moving from California to Washington

California’s reach does not end on moving day. Under the Franchise Tax Board’s rules for part-year residents and nonresidents, you pay California tax on everything received while you were a resident, and on California-source income afterward. Two points matter most to people paid partly in equity:

• Stock compensation can follow you. Deferred and equity-based compensation can remain California-source income after you leave, even when all your later work is in Washington. FTB Publication 1004 explains how it is split.
• Work done in Washington is not California income. A remote job done from Seattle is outside California’s income tax. Days you fly back and work in California are inside it.

Washington then taxes none of the wages, but its paid leave premium follows the work. The Employment Security Department says premiums are withheld from people who work in Washington, including those who live out of state, and not from Washington residents who work entirely out of state.

What the take-home figure does not count

Washington funds itself through sales tax, a business and occupation tax on gross receipts, and property tax, and it taxes large long-term capital gains. None of that is in these figures, and neither is housing, which differs widely within both states. This page compares only what is taken from wages.

Questions people ask

Do you take home more in California or Washington on $75,000?

Washington, by $2,709 a year, or $226 a month, for a single filer in 2026. That counts federal tax, Social Security, Medicare, state income tax and every state payroll deduction.

Is the difference the same at every salary?

No, but the same side stays ahead. The gap is $196 a year at $30,000 and $19,316 at $250,000, for a single filer.

Washington has no income tax, so what comes out of a Washington paycheck?

Two state premiums. Paid Family and Medical Leave takes the employee's 71.43% share of a 1.13% premium, up to the Social Security wage base, and WA Cares takes 0.58% of every dollar for the state's long-term care benefit, with no cap. California's only state payroll levy is SDI.

Does moving to Washington stop California taxing my stock compensation?

Not necessarily. The Franchise Tax Board says deferred or equity-based compensation can remain California-source income after you move, even if all your later work is done outside California. Washington, separately, taxes large long-term capital gains through an excise tax, which does not touch wages.

I work remotely from Washington for a California company. What comes out of my pay?

California taxes a nonresident only on services performed in California, so days you work from home in Washington are not California income, while days you travel to California to work are. Washington's paid leave premium follows where the work is done, so the work you do in Washington is subject to it.

What this comparison covers

Income tax and payroll deductions on wages: federal income tax, Social Security, Medicare, state income tax, every state payroll deduction. It does not compare sales tax, property tax, housing or the cost of living, which can outweigh the difference in take-home pay. Figures assume the standard deduction, no dependents and no pre-tax retirement contributions. See how we calculate.