Introduction
Washington state has introduced several new taxes that affect entrepreneurs and investors, including a capital gains tax and Seattle’s revamped business & occupation (B&O) tax. Understanding how these taxes interact with federal rules and planning ahead can save millions and prevent unpleasant surprises.
Key topics covered on the blog
- Washington capital gains tax — The state’s new 7 % tax applies to long‑term capital gains above $250,000, but QSBS gains excluded under Section 1202 are not subject to the tax. We break down how the tax is calculated and discuss recent legal challenges and filing deadlines.
- QSBS and state taxes — Articles explain that if your gain is excluded under federal Section 1202, it is also excluded under Washington’s capital gains tax.
- Seattle’s new B&O tax — Proposition 2 introduced higher B&O rates for service businesses while increasing the exemption for small businesses up to $2 million in gross receipts. We explain the new tiers, who pays more or less, and strategies for compliance.
- Local & regional tax issues — We explore other local taxes affecting startups, such as payroll taxes and city‑specific surcharges.
Whether you’re selling stock, planning an exit or simply operating in Washington, we can help you navigate these state and local taxes and coordinate them with federal tax strategies.
Ready to get started?
- Schedule a consultation — Book a time on our calendar to discuss Washington tax planning for your business or investments.
- Contact us — Reach us through our contact page with your questions.
- Subscribe for updates — Join our newsletter to stay informed on Washington’s capital gains tax, B&O taxes and other state tax developments.