No income tax in Washington state Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (B&O) and/or public utility tax.
In 1933 the Washington State Supreme Court ruled that a state income-tax initiative approved by voters was unconstitutional because it did not uniformly tax a class of property (in this case, income).
Although Washington doesn't require Form W-2, the IRS mandates filing it to report wages and withheld taxes for your employees. The state of Washington does not require you to file Form W-2 as there is no state income tax.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have state income tax. Most other states require employees to complete the W-4 for state taxes, unless the state imposes a flat income tax rate.
Income tax forms: The State of Washington does not have a personal or corporate Income Tax. Warning: to protect against the possibility of others accessing your confidential information, do not complete these forms on a public workstation.