Washington Wage and Payroll Tax Facts

Miscellaneous Washington Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Washington currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Washington pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Washington doesn’t require employers to collect PSL taxes, but it does have a program requiring such leave for eligible employees:

Washington PSL Details
Covered Employees	All except for doctors, lawyers, dentists, or salaried executive managers
Covered Employers	All
Accrual Method(s)	1 hour per 40 hours worked
Carryover Maximum	40 hours
Annual Accrual Maximum	None
Probationary Period	90 days
Frontloading Allowed	Yes
FAQs	Washington PSL FAQs

Paid Family and Medical Leave (PFML) Taxes

Like SDI, Washington’s PFML program is funded via mandatory payroll deductions and employer contributions.

Washington PFML Details
Covered Employees	Any who worked 820 hours in the state over the course of a year, except for federal employees, tribal business employees, and the self-employed
Covered Employers	All
Amount of Leave	Up to 12 weeks Up to 16 weeks if an employee experiences more than one qualifying event in a single year Up to 18 weeks if an employee experiences a condition in pregnancy that causes incapacity
Tax Rate	0.74% of each employee’s wages (split 28.57% / 71.43% between employers* and employees respectively)
Wage Base Limit	$168,600
Wage Replacement	Up to 90% of weekly wages until reaching the maximum benefit rate
Maximum Benefit Rate	$1,456 per week

*Employers with fewer than 50 employees are only required to collect and remit the employee’s portion of this rate, though they can choose to pay some of the employee portion if they wish.

Washington Cares Fund Taxes

The Washington Cares fund is a public, long-term care insurance program designed to provide affordable care to individuals who need assistance with two activities of daily living (ADLs) or one instrumental activity of daily living (IADL).

Also like SDI, this program is funded via mandatory payroll deductions, and employees can begin filing claims on July 1, 2026.

Washington Cares Fund Details
Covered Employees	All except for federal employees, tribal business employees, and the self-employed
Covered Employers	All
Eligibility Requirements	There are three ways to gain eligibility: Lifetime Access to Full Amount: Contribute for 10 qualifying years* without a break of five or more consecutive years Early Access to Full Amount: Contribute for 3 qualifying years out of the prior 6 leading up to the filed claim Lifetime Access to Partial Amount: Those close to retirement who were born before January 1, 1968, can access 10% of the full amount for each qualifying year with contributions
Tax Rate	0.58%
Maximum Benefit Amount	$36,500
FAQs	Washington Cares Fund FAQs

*Any year an individual works 500 or more hours while making contributions to the fund.

Washington Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics, and the Employment Security Department for unemployment tax topics. 

Registration Details	Department of Revenue	Employment Security Department
Phone	(360) 902-5999	(855) 829-9243
Online Registration	Business Licensing Wizard
Registration Form	Form 700 028
Registration Instructions	Online and paper registration options are available.
Employer Self-Service Login	My DOR Login Page	EAMS Login Page