Seattle's RSU tax surprise
WA's 7% capital gains tax (above ~$270K of long-term gains per year, 2026 indexed) hits Amazon, Microsoft, and Meta employees when they sell vested RSUs. The tax does NOT apply to wages, retirement accounts, or real estate.
WA Cares Fund payroll tax
WA Cares is a 0.58% mandatory payroll tax (employee side) funding long-term care. Some workers opted out before the 2022 deadline; new hires can't opt out. On a $200K salary that's $1,160/year.
Paid Family & Medical Leave
WA PFML is ~0.74% of wages (employee + employer share), capped at the SS wage base. Roughly $1,300/year on a $200K salary. Most calculators ignore this — we don't.
FAQ
Does WA tax RSU income?
WA does not tax wages, including RSU vesting income (which is W-2 ordinary income). However, gains on sale of vested RSUs may be subject to WA's 7% capital gains tax above the annual threshold.
What is WA Cares?
WA Cares is a long-term care benefit funded by a 0.58% payroll tax. It's mandatory for most W-2 employees and pays up to $36,500 in lifetime benefits.
Is Seattle's payroll tax (JumpStart) deducted from my paycheck?
No. Seattle's JumpStart tax is paid by large employers (not employees) on compensation over $174K. It doesn't appear on your paystub but may affect employer hiring/comp decisions.
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
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Last reviewed
June 2026. We re-check every figure on the platform on a rolling quarterly cycle.
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See our editorial policy and disclaimer. Results are estimates, not advice.