Update from the Firm: WA State Capital Gains Tax

We have some important updates that affect Washington State Tax Payers:

WA Capital gains excise tax ruled constitutional; returns and payments due by April 18, 2023 

The Washington State Supreme Court has upheld the Washington Capital Gains tax. This tax is imposed on individuals with long-term capital gains in excess of $250,000. However, several deductions and exemptions may reduce the taxable amount of long-term gains.

The first tax return is due on Tuesday, April 18, 2023, and applies to Long term Gains after 12/31/21. Individuals who receive a filing extension for their federal income tax return and request an extension for their state capital gains return by the due date are entitled to the same filing extension for their Washington capital gains tax return. However, a filing extension does not extend the due date for paying the capital gains tax owed. Penalties will apply to late returns. Additional penalties and interest will apply to late payments. 

How-to videos and additional resources 

• How-to videos: 

  • Register for a capital gains account.  

  • File a capital gains return.  

• Informational flyer:  Capital Gains Tax Overview.  

• Frequently Asked Questions webpage. 

Please get in touch with your trusted advisor at The Doty Group for more information.