Washington · Bonus Depreciation
Bonus Depreciation in Washington (2026)
Take 60% first-year bonus depreciation on qualifying business assets (phasing down). Washington has no state income tax, so a Washington filer's combined marginal rate on the next dollar at $82,228 of income is about 22% (22% federal).
2026 savings example for Washington
Planning estimate for a single filer earning $82,228 (Washington median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; WA tax uses the state brackets in LevyIO's dataset.
Estimated total savings
$1,100
Federal savings
$1,100
$9,260 → $8,160 · 22% bracket
WA state savings
$0
No state income tax
Combined marginal rate
22%
≈ $220 saved per $1,000 deducted
Federal × Washington marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The WA column is the state marginal rate at the midpoint of each range (Washington has no income tax). The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | WA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 0% | 10% | $100 |
| 12% | $28,500 - $66,500 | 0% | 12% | $120 |
| 22% | $66,500 - $121,800 | 0% | 22% | $220 |
| 24% | $121,800 - $217,875 | 0% | 24% | $240 |
| 32% | $217,875 - $272,325 | 0% | 32% | $320 |
| 35% | $272,325 - $656,700 | 0% | 35% | $350 |
| 37% | Over $656,700 | 0% | 37% | $370 |
Eligibility & forms
Businesses with qualifying new/used property
- New or used qualifying property
- 60% bonus in 2024
- Placed in service during tax year
Federal forms: Form 4562
Washington filing notes
No wage income tax is a major benefit. Washington capital gains tax excludes many assets including real estate and retirement accounts, but high-gain liquidity events need separate review. High sales taxes add up. Compare to Oregon, which has no sales tax but does tax wage income.
Common mistakes: Not electing out when beneficial; Missing phase-down schedule.
Frequently asked questions
How much can the Bonus Depreciation save a Washington taxpayer in 2026?
In LevyIO's example, a single filer with $82,228 of income (the Washington median household income in our state dataset) who removes $5,000 from taxable income saves about $1,100 in 2026 federal tax (22% marginal bracket) and nothing at the state level because Washington does not tax wage income. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's WA bracket data, not a survey figure.
What is the Washington income tax rate for 2026?
Washington has no state income tax. The WA standard deduction in LevyIO's dataset is $0 single / $0 married. No wage income tax. Washington capital gains tax uses a 7% tier and an additional 2.9% tier above $1M for tax year 2025 and later. Very high combined sales tax (9.29%). Estate tax.
Who qualifies for the Bonus Depreciation in Washington?
Businesses with qualifying new/used property. The federal rules are the same in every state; the requirements are: New or used qualifying property; 60% bonus in 2024; Placed in service during tax year. Washington filers should confirm on the WA return whether the state follows the federal treatment.
Which forms do I file to claim the Bonus Depreciation?
Federal: Form 4562. Washington has no individual income tax return for wage income, so there is no state form to file for this item. Common mistakes: Not electing out when beneficial; Missing phase-down schedule.
Bonus Depreciation in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.