Title 82A, Title 82A INCOME TAX

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Capital asset" has the same meaning as provided in chapter 82.87 RCW.(2) "Department" means the department of revenue of the state of Washington.(3) "Federal adjusted …

Any term used in this chapter has the same meaning as when used in a comparable context in the internal revenue code, unless a different meaning is clearly required or the term is specifically defined in this chapter.[ 2026 c 238 s 102.]Notes:Findings—Intent—Effect of invalidatio…

(1) Beginning January 1, 2028, a tax is imposed on the receipt of Washington taxable income. Only individuals are subject to payment of the tax, which equals 9.90 percent multiplied by an individual's Washington taxable income.(2) If an individual's Washington taxable income is l…

(1) Taxes collected under this chapter must be deposited in the state general fund to fund the sales and use tax relief in sections 903 through 908, chapter 238, Laws of 2026, the working families' tax credit program, including its expansion in section 901, chapter 238, Laws of 2…

(1) A resident individual is allowed a credit against the tax imposed under this chapter for the amount of any income tax paid to another state, or political subdivision of the state, on income taxed under this chapter, subject to the following conditions, which must be imposed s…

(1) Beginning in tax year 2028 with taxes due in 2029, to avoid taxing the same Washington taxable income under the business and occupation tax or public utility tax and the tax imposed under this chapter, a nonrefundable credit is allowed against taxes due under this chapter on …

(1) Beginning in tax year 2028 with taxes due in 2029, a nonrefundable credit is allowed against taxes due under this chapter for the amount of tax imposed on Washington capital gains for the same tax year. "Washington capital gains" has the same meaning as provided in RCW 82.87.…

(1) Beginning in tax year 2028 for taxes due in 2029, a nonrefundable credit is allowed against taxes due under this chapter for the amount of the tax expense incurred by a pass-through entity under RCW 82A.04.520 attributable to the owner as provided in RCW 82A.04.520(3). For a …

In computing Washington base income for a taxable year, modifications must be made to the taxpayer's federal adjusted gross income as required under RCW 82A.04.210 through 82A.04.270 and 82A.04.410 through 82A.04.460, unless the modification has the effect of duplicating an item …

(1) In computing a taxpayer's Washington base income, the taxpayer must deduct from the taxpayer's federal adjusted gross income any long-term capital gains that have been included in computing federal adjusted gross income.(2) In computing a taxpayer's Washington base income, a …

In computing a taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income any income that has been excluded under section 103 of the internal revenue code in computing federal adjusted gross income, except interest on obligations of t…

In computing a taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income:(1) Taxes on or measured by net income which have been deducted under the internal revenue code in computing federal adjusted gross income;(2) The amount of tax…

In computing a taxpayer's Washington base income, the taxpayer must:(1) Add to the taxpayer's federal adjusted gross income, any amounts that have been deducted in computing federal adjusted gross income to the extent the amounts have been carried over from taxable years ending b…

In computing a taxpayer's Washington base income, the taxpayer must deduct, to the extent included, from the taxpayer's federal adjusted gross income, any income derived from obligations of the United States that this state is prohibited by federal law from subjecting to a net in…

In computing a resident taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income, all income from a trust treated as a nongrantor trust for federal income tax purposes but funded with an incomplete gift for purposes of section 2511 …

(1) The following is exempt from the tax imposed by this chapter:(a) Income derived from the exercise of rights by any member of a federally recognized tribe secured by treaty, executive order, or act of congress;(b) Income received by any member of a federally recognized tribe, …

(1) In computing a taxpayer's Washington taxable income, the taxpayer may deduct from their Washington base income the amount of charitable contributions they claimed for the taxable year under section 170 of the internal revenue code to a qualified organization, up to a maximum …

In computing a taxpayer's Washington taxable income, the taxpayer must add to the taxpayer's Washington base income the taxpayer's distributive share of the tax expense incurred by a pass-through entity under RCW 82A.04.520 to the extent the expense has been deducted in calculati…

In computing a taxpayer's Washington taxable income, the taxpayer may deduct from the taxpayer's Washington base income the amount deposited in a capital construction fund under section 7518 of the internal revenue code if the amount has reduced the taxpayer's federal taxable inc…

In computing a taxpayer's Washington taxable income, the taxpayer must deduct an amount equal to 90 percent of any Washington allocated wagering losses for the tax year. The amount of the losses deducted cannot be more than the Washington allocated wagering income included in the…

In computing a taxpayer's Washington taxable income, the taxpayer may deduct from the taxpayer's Washington base income the amount of expenditures disallowed pursuant to section 280E of the internal revenue code so long as the expenditures are related to the commercial cannabis a…

In computing a taxpayer's Washington taxable income, a taxpayer may deduct from the taxpayer's Washington base income a standard deduction of $1,000,000 per individual, or in the case of spouses or state registered domestic partners, their combined standard deduction is $1,000,00…

The deduction from Washington base income allowed under RCW 82A.04.360 for individual taxpayers who are not residents of this state for the entire taxable year must be reduced by multiplying the amount of the deduction by a fraction. The numerator of the fraction is the individua…

(1) Beginning October 2029 and each October of an odd-numbered year thereafter, the department must adjust the standard deduction under RCW 82A.04.360 by multiplying the current standard deduction amount by one plus the percentage by which the most current consumer price index av…

(1) For resident individuals, all income must be allocated to this state.(2) For nonresident individuals, income derived from sources within this state must be allocated to this state. Income derived from sources within this state means:(a) Wages and other compensation from emplo…

(1) Income derived from sources within this state include an apportioned share of the individual's distributive share of income, gains, losses, and deductions from pass-through entities that operate in the state, as provided in subsection (2) of this section.(2) The allowable mod…

(1) Unless provided otherwise in this chapter, a nonresident individual is subject to tax on the portion of federal adjusted gross income derived from employment within the state of Washington, regardless of the location of the commercial domicile of the employer.(2) Compensation…

(1) For nonresident members of a professional athletic team, the portion of compensation attributable to athletic performances in the state must be apportioned to Washington as provided under this section.(2)(a) The portion of the compensation of a member of a professional athlet…

(1) The portion of federal adjusted gross income of a nonresident derived from or connected with a business, trade, or profession carried on in this state, including a sole proprietorship and any distributive share of a pass-through entity of a business, trade, or profession carr…

(1) Except as provided in subsection (2) of this section, the adjusted gross income of a part-year resident is the sum of the following:(a) For the portion of the year in which the taxpayer was a resident of Washington, the taxpayer's entire adjusted gross income; and(b) For the …

(1) The portion of adjusted gross income of a nonresident student athlete derived from the commercial use of the student athlete's name, image, or likeness is allocated to this state if the publicity services provided by the student athlete related to such commercial use of the s…

(1) Each individual with an estimated tax under this chapter in excess of $5,000 that is required by the internal revenue code to make payment of estimated taxes must pay to the department on forms prescribed by the department the estimated taxes due under this chapter.(2) The pr…

(1)(a) Beginning January 1, 2028, a tax is imposed at a rate of 9.90 percent of the taxable income of an electing entity for each taxable year in which an election under this section is in effect.(b) The tax is paid by the electing entity.(2)(a) A pass-through entity may elect to…

(1) A taxpayer's method of accounting for purposes of the tax imposed under this chapter is the same as the taxpayer's method of accounting for federal income tax purposes. If no method of accounting has been regularly used by a taxpayer for federal income tax purposes or if the …

The department may reasonably estimate the items of business or nonbusiness income of a taxpayer having an office within the state and one or more other states or foreign countries which may be apportioned or allocated to the state and may enter into estimation agreements with su…

(1)(a) Except as otherwise provided in this section or RCW 82.32.080, taxpayers owing tax under this chapter must file, on forms prescribed by the department, a return with the department on or before the date the taxpayer's federal income tax return for the taxable year is requi…

(1) If the federal income tax liabilities of both spouses are determined on a joint federal return for the taxable year, they must file a joint return under this chapter.(2) Except as otherwise provided in this subsection (2), if the federal income tax liability of any individual…

(1) Any person who knowingly attempts to evade the tax imposed under this chapter or payment thereof is guilty of a class C felony as provided in chapter 9A.20 RCW.(2) Any person who knowingly fails to pay tax, make returns, or supply information, as required under this chapter, …

Except as otherwise provided by law and to the extent not inconsistent with the provisions of this chapter, chapter 82.32 RCW applies to the administration of taxes imposed under this chapter.[ 2026 c 238 s 704.]Notes:Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Aut…

(1) To the extent possible without being inconsistent with this chapter, all of the provisions of subtitle F (procedure and administration) of the internal revenue code relating to the following subjects apply to the taxes imposed under this chapter:(a) Timing and amount of tax p…

(1) The department may adopt rules under chapter 34.05 RCW for the administration and enforcement of this chapter. The rules, to the extent possible without being inconsistent with this chapter, must follow the internal revenue code and the regulations and rulings of the United S…

Beginning on January 1, 2028, the department of revenue must report to the legislature annually on the total cost of administration of chapter 238, Laws of 2026, the number of full time employees required to administer chapter 238, Laws of 2026, and the ratio of cost of implement…

(1) For the purposes of implementing sections 101 through 814, chapter 238, Laws of 2026, the department of revenue is required to regularly consult with the advisory group created in this section.(2) The advisory group members must include:(a) The director of the department of r…