I know it’s been a while since I’ve lived in a state that didn’t require a state sales tax (most states do in fact charge a sales tax on new construction homes). But like most things in life, it’s hard to figure out how much it costs to live in a state.
Washington state is the most expensive state to live in. Most of the time, this is because of the costs of being in the state, where you have to buy a home, pay for utilities, and take on homeowners insurance. But as you might imagine, the state’s real estate prices are going through the roof. According to the Washington State Department of Revenue, the average price of a home in the state is now $1,723,000 (a little over 10 million dollars).
If you live in Washington state, it’s probably because you own your home. However, you can get a tax break if you pass away in the state. That’s because the state is a “qualified state” that’s allowed to collect a state tax exemption on the value of your property when you die. This is a good thing because, if you can pass away, you can get to keep your home and avoid having that property become the property of the state.
In Washington state, the money paid to the state in death taxes is used to replace what would have been the state’s capital. The state then pays a state tax to the state to cover the cost of the capital in the event of your death. In other words, the state now has a tax exemption on your home.
Although this is a good thing, if you live in California, you may have a hard time figuring out how to get to Washington state. According to the state’s website, the only way is to drive across the bridge to Oregon. But there’s no guarantee that state’s will pay the full cost of the bridge if you decide to go through with your scheme.
What if I told you that the state of Washington, the state that you live in, is paying for your state tax exemption? Well, you can check that out here. But you have to be careful about where you apply the full cost. It’s very likely that the state of Washington has a different tax exemption system than the rest of the states. This means that you have to check with your state government and see if they’ll waive their state tax exemption for you.
For most of the other states where we live, we pay the state some amount of income tax. Since we live in Washington State, we’re paying for that income tax exemption. But our state income tax exemption is one of the highest in the country. It’s also worth pointing out that Washington State is a major income tax haven. So although you’ll be paying Washington State tax on your income, you’ll still have the benefit of some other tax breaks.
If you live in Washinton, youll be eligible to receive a tax exemption for up to $25,000 per person. But theyll also waive their state’s income tax exemption for the first $25,000. Which is why you’ve likely landed in this article. Theyll also waive their state’s cigarette tax exemption for the first $25,000.
While the state of Washington is no longer a tax haven, the feds still don’t allow out-of-state residents to avoid out-of-state income tax by filing as Washington residents. So if you’re not a resident of Washinton, youll be paying income tax on your income. If youre a resident of any other state, youll have to pay that tax to the state.
In Washington State, we’ve got six states, and each state has its own set of tax exemptions. In the case of Washington, we have a new law that goes into effect Jan. 1st that removes the state income tax exemption. So if youre a resident of any of these six states, youll no longer be able to avoid paying income taxes. So your home will be taxed as if you were a resident of the state with the lowest income tax.