A 7-percent tax is imposed on the sale or exchange of long-term capital assets including stocks, bonds, business interests, tangible assets, and other investments allocated to Washington state.2
Several assets are exempt from the tax, including but not limited to real estate and assets held within certain retirement accounts.3
A $250,000 standard deduction is available per year for each individual or married couple, regardless of whether they file jointly or separately. The standard deduction is adjusted annually for inflation.4
The capital gains tax return is only required to be filed by individuals who owe tax.5
The deadline for filing the capital gains tax return is the same as the individual’s federal tax return.6 Taxpayers with an approved extension of time to file their federal returns also receive an extension of time to file their capital gains tax returns provided they submit to the department, by the original due date, the extension confirmation number or other evidence confirming the federal extension.7
The extension does not extend the deadline for payment. Penalties and interest will apply to late-filed returns and payments.8 Underpayment penalties also apply to those who have “Substantially underpaid” their capital gains tax liability, meaning they have paid less than 80 percent of the tax due and the underpayment is at least $1,000.9
To submit a capital gains tax return, make payment, or provide the Department with documentation confirming their federal extension, individuals should create a SecureAccess Washington (SAW) account online. For more information, please visit the following Department of Revenue website "Capital Gains - My DOR help."