Washington state has been identified as one of the 10 least tax-competitive states in the United States according to the Tax Foundation “ 2026 State Business Tax Competitive Index .” The state ranks 45th overall.

Washington came in 47th for corporate taxes and 49th for both sales and unemployment insurance taxes.

Experts noted that Washington’s new capital gains tax contributed to this low ranking, dropping the state from 33rd place in 2020.

The report also cautioned that new digital sales taxes could lower Washington’s ranking further in the coming years.

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