A new report shows that two cities in Washington state have the highest sales taxes in the country.
The report from the nonprofit Tax Foundation says Seattle’s combined local and state sales tax is the highest of any major city in the U.S. Except for certain goods, sales in Seattle are taxed at 10.35% – just 0.05% more than No. 2 on the list: Tacoma.
Seattle residents told KIRO Newsradio they have felt the pressure of taxes as the cost of living continues to rise faster than wages, but they disagree on how to address the problem.
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Brian, who gave only his first name and has lived in Seattle for 77 years, said he believes high sales taxes disproportionately affect the poor.
“I think taxes should be more balanced,” he said. “I would like to see an income tax and then maybe a slight reduction in sales tax.”
Washington has no income tax by law, but municipalities can adjust the sales tax as their governing bodies see fit. In comparison, Oregon has no sales tax, but taxes income at both the state and local levels. For high earners in Portland, Multnomah County, the combined state and local tax can be about 11%.
Some taxpayers told KIRO Newsradio they would rather stay with Washington’s income tax-free system. Travis, who gave only his first name, said he disagrees with the idea of imposing an income tax but reducing the sales tax. He believes it would only worsen his economic situation.
“I feel like a big part of my income is already being taken away from me,” he said while fishing at Green Lake Park.
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He said some situations, such as sudden car repairs, highlight the challenges of Seattle’s high sales tax.
“I paid taxes on the car parts and then I had to pay taxes on the service that was required to install them in my car,” he said. “So I was basically taxed twice.”
Portland and Anchorage, Alaska, are at the bottom of the list, according to the Tax Foundation, as neither imposes a local or state sales tax. But of the states that impose the surcharge on retail goods, Honolulu has the lowest sales tax rate at 4.5%.
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