Washington Military Retirement: Key Facts (2026)
✅ Major Benefits
- • $0 state income tax on ALL income
- • 100% of military retirement exempt
- • 100% of VA disability exempt
- • No tax on Social Security benefits
- • Strong military community (JBLM)
- • Excellent VA healthcare system
- • Veteran tuition waiver at state colleges
- • Strong Yellow Ribbon participation at private universities
- • Beautiful Pacific Northwest scenery
⚠️ Considerations
- • Higher sales tax (8.9-10.4%)
- • Property taxes above national average
- • Seattle area: High cost of living
- • Rainy climate (western Washington)
- • Housing costs rising in metro areas
- • Traffic congestion near JBLM/Seattle
How Washington Taxes Military Retirement (2026)
🎯 The Simple Truth:
Washington has NO state income tax whatsoever. This means:
- ✅ Military retirement pay: 100% exempt (no tax)
- ✅ VA disability compensation: 100% exempt (no tax)
- ✅ Social Security: 100% exempt (no tax)
- ✅ Pensions, 401(k), IRA distributions: 100% exempt (no tax)
- ✅ Part-time job or consulting income: 100% exempt (no tax)
You will pay $0 in state income tax regardless of how much you earn.
Real-World Examples (2026)
Example 1: E-7 with 20 Years
• Gross military retirement: $2,850/month ($34,200/year)
• 50% VA disability: $1,075/month ($12,900/year)
• Part-time job: $2,000/month ($24,000/year)
• Total gross income: $71,100/year
• Washington state tax: $0
Compare to California: ~$2,100/year in state tax
Example 2: O-5 with 25 Years
• Gross military retirement: $5,200/month ($62,400/year)
• 100% VA disability: $3,737/month ($44,844/year)
• Spouse working: $4,500/month ($54,000/year)
• Total gross income: $161,244/year
• Washington state tax: $0
Compare to Oregon: ~$12,900/year in state tax
Example 3: E-9 with 30 Years
• Gross military retirement: $4,800/month ($57,600/year)
• 70% VA disability: $1,800/month ($21,600/year)
• Federal GS-11 job: $6,000/month ($72,000/year)
• Total gross income: $151,200/year
• Washington state tax: $0
Compare to California: ~$11,300/year in state tax
Other Washington Taxes to Know
Sales Tax
Washington has NO state income tax, but makes up revenue through sales tax:
- State rate: 6.5%
- Local rates add 0.5% to 4%
- Total combined rate: 8.9% to 10.4% (varies by city)
- Seattle: 10.35% (one of highest in nation)
- Spokane: 9.0%
- Tacoma/JBLM area: 10.3%
- Groceries are generally exempt
Property Tax
Washington property taxes are moderate to high depending on location:
- Average effective rate: 0.84% of home value
- $400,000 home = ~$3,360/year in property tax
- King County (Seattle): Higher rates (~1.0%)
- Pierce County (JBLM/Tacoma): ~0.95%
- Spokane County: Lower rates (~0.75%)
- Disabled veterans may qualify for property tax exemption (100% service-connected disability)
Estate Tax
Washington has an estate tax with exemption of $2.193 million (2026). Most military retirees won't be affected, but high-net-worth individuals should plan accordingly.
Cost of Living in Washington (2026)
Washington's cost of living varies dramatically by region. Seattle metro is expensive, but areas near JBLM and eastern Washington are more affordable.
Housing (Seattle Metro)
- • Median home price: $850,000
- • Rent (2BR): $2,400-3,200/month
- • Condo: $500,000-700,000
Housing (JBLM/Tacoma Area)
- • Median home price: $520,000
- • Rent (2BR): $1,800-2,400/month
- • More affordable than Seattle
Housing (Spokane/Eastern WA)
- • Median home price: $420,000
- • Rent (2BR): $1,400-1,800/month
- • Significantly more affordable
Other Costs
- • Gas: $3.80-4.50/gallon
- • Utilities: $180-250/month
- • Healthcare: Excellent (VA + private)
💰 Overall Cost of Living Comparison:
- • Seattle metro: 56% above national average
- • JBLM/Tacoma area: 22% above national average
- • Spokane/Eastern WA: 5-10% below national average
- • Bottom line: Zero state income tax helps offset higher sales tax and housing costs, especially in western Washington
Military Presence in Washington
Washington has 9 major military installations with Joint Base Lewis-McChord being one of the largest military bases in the United States.
Puget Sound Region
- • Joint Base Lewis-McChord (JBLM) - Army I Corps, Air Force 62nd Airlift Wing
- • Naval Base Kitsap - Bremerton & Bangor (submarine base)
- • Naval Station Everett - Carrier homeport
- • Naval Air Station Whidbey Island - EA-18G Growlers
- • Coast Guard Base Seattle
Eastern Washington
- • Fairchild Air Force Base - Near Spokane, KC-135 refueling
- • Naval Magazine Indian Island - Ammunition depot
- • Camp Murray - National Guard headquarters
🎖️ Why Washington is Great for Military Retirees:
- • JBLM community: Massive military retiree population around Tacoma/Olympia area
- • Commissary & Exchange access: Multiple locations (JBLM, Kitsap, Whidbey)
- • VA Healthcare: VA Puget Sound (Seattle), American Lake VA (Tacoma), Spokane VA
- • Military-friendly culture: Strong support and understanding from local communities
- • Outdoor recreation: Mt. Rainier, Olympics, Cascades - world-class hiking, skiing, fishing
- • Employment opportunities: Boeing, Amazon, Microsoft, federal GS positions
🎓 Education Benefits for Veterans & Families in Washington
Washington offers excellent education benefits for veterans and their families. While Washington doesn't offer the same free tuition benefits as Texas, the state provides tuition waivers for eligible veterans and strong Yellow Ribbon participation at private universities.
Washington State Veteran Tuition Waiver
Tuition Waiver at Washington State Colleges & Universities
Washington offers tuition waivers for eligible veterans at state colleges and universities. Veterans who have served 181 days or more of active duty and received an honorable discharge may qualify for reduced or waived tuition at participating institutions.
Who Qualifies?
- Active Duty Service: Must have served at least 181 days of active duty
- Discharge Status: Honorable discharge required
- Residency: Washington state resident at time of application
- Eligible Institutions: State community and technical colleges, public universities
- Coverage: Waives tuition (fees may still apply)
Washington National Guard State Tuition Assistance
State Educational Assistance Program (SEAP)
- Up to $4,500 per fiscal year for eligible Guard members
- Can be used in conjunction with federal Tuition Assistance
- Covers tuition at Washington public and private institutions
- Must maintain satisfactory academic progress and Guard standing
- Contact your unit's Education Services Officer for details
Yellow Ribbon Program in Washington
Washington has excellent Yellow Ribbon participation at several prestigious private universities. The Yellow Ribbon Program helps cover the difference between GI Bill benefits and private school tuition costs.
Top Yellow Ribbon Schools in Washington
- University of Puget Sound - Unlimited slots, full tuition coverage
- Seattle Pacific University - Generous awards
- Gonzaga University - Comprehensive coverage
- Whitworth University - Strong veteran support
- Seattle University - Excellent benefits
How Yellow Ribbon Works
- School contributes a portion to cover tuition above GI Bill cap
- VA matches the school's contribution dollar-for-dollar
- Combined with Post-9/11 GI Bill = often full tuition coverage
- Must have 100% Post-9/11 GI Bill eligibility
- Contact school's VA office to apply
Washington State University System
Washington's public university system is veteran-friendly with dedicated support services:
- University of Washington - Flagship school, Seattle campus, strong veteran services
- Washington State University - Land-grant institution, multiple campuses statewide
- Western Washington University - Bellingham, excellent liberal arts programs
- Eastern Washington University - Cheney/Spokane area, affordable tuition
- Central Washington University - Ellensburg, strong STEM programs
- The Evergreen State College - Olympia, alternative education model
Community & Technical Colleges
Washington has 34 community and technical colleges offering affordable education with comprehensive veteran services:
- Lower tuition costs than universities
- Flexible schedules for working veterans
- Transfer agreements with 4-year institutions
- Dedicated veteran advisors and priority registration
- Many offer veteran-specific support programs
- Examples: Pierce College (near JBLM), Spokane Community College, Seattle Central College
In-State Tuition for Veterans
Under federal law, all veterans using GI Bill benefits qualify for in-state tuition rates at public colleges and universities in Washington, regardless of how long they've lived in the state. This can save thousands of dollars per year.
How to Apply for Washington Education Benefits
- Tuition Waiver: Contact your school's veteran services office or financial aid office to apply. Submit DD-214 and proof of Washington residency.
- National Guard SEAP: Work with your unit's Education Services Officer to apply for state tuition assistance.
- Yellow Ribbon: Contact the school's VA certifying official directly - each institution has its own application process.
- General Questions? Contact the Washington State Department of Veterans Affairs (WDVA) at 1-800-562-2308
Official Resources: Washington Department of Veterans Affairs | VA Yellow Ribbon Search
Best Washington Cities for Military Retirees
Tacoma/Lakewood (JBLM Area)
Heart of military community. Close to JBLM, excellent commissary/exchange, strong veteran services.
- • Median Home Price: $500,000
- • Cost of Living: 22% above national avg
- • Military Bases: JBLM (5 miles)
- • VA Hospital: American Lake VA
Olympia
State capital, quieter than Tacoma, close to JBLM. Good balance of affordability and access.
- • Median Home Price: $485,000
- • Cost of Living: 18% above national avg
- • Military Bases: JBLM (20 miles)
- • Small-town feel, state capital benefits
Spokane
Eastern Washington's largest city. Near Fairchild AFB, much more affordable, four distinct seasons.
- • Median Home Price: $420,000
- • Cost of Living: 5% below national avg
- • Military Bases: Fairchild AFB
- • Spokane VA Medical Center
Silverdale/Bremerton (Kitsap Area)
Navy community near Naval Base Kitsap. Beautiful Puget Sound location, ferry access to Seattle.
- • Median Home Price: $550,000
- • Cost of Living: 25% above national avg
- • Military Bases: Naval Base Kitsap
- • Strong Navy retiree community
Frequently Asked Questions
Does Washington tax military retirement pay?
No. Washington has NO state income tax, so 100% of your military retirement pay is exempt from state taxation.
Does Washington tax VA disability benefits?
No. Washington does not have a state income tax, so VA disability compensation is completely tax-free.
Is Washington military-friendly?
Yes, extremely. With JBLM and multiple naval installations, Washington has a massive military and veteran population. Strong veteran services, employment protections, and community support make it one of the most military-friendly states.
What about the high cost of living?
Seattle metro is expensive, but areas near JBLM (Tacoma, Olympia, Lakewood) and eastern Washington (Spokane) are significantly more affordable while still offering zero state income tax benefits. The tax savings help offset higher sales tax and housing costs.
What's the weather like in Washington?
Western Washington (Seattle, Tacoma, Olympia) has mild, rainy winters and dry summers (60-75°F). It rains frequently but is rarely extreme. Eastern Washington (Spokane) has four distinct seasons with hot summers and cold, snowy winters. Many military retirees love the Pacific Northwest climate.
Does Washington offer free tuition for veterans?
Washington offers tuition waivers for eligible veterans at state colleges and universities. Veterans who have served 181+ days of active duty and received an honorable discharge may qualify. While not as comprehensive as Texas's Hazlewood Act, these waivers can significantly reduce education costs. Additionally, Washington National Guard members can access up to $4,500/year through the State Educational Assistance Program (SEAP).
What is the Washington Veteran Tuition Waiver?
The Washington Veteran Tuition Waiver is a state benefit that waives tuition (though fees may still apply) for eligible veterans at Washington's public colleges, universities, and community colleges. To qualify, veterans must have served at least 181 days of active duty, received an honorable discharge, and be a Washington resident. This benefit can be used in combination with GI Bill benefits.
Calculate Your Washington Retirement Income
Use our free calculator to see exactly how much you'll keep with zero state income tax
Use Free Calculator →🎖️ Bottom Line for Washington Military Retirement
Washington's zero state income tax makes it one of the absolute best states for military retirees. You'll pay $0 on your military retirement, VA disability, Social Security, and any other income. The JBLM area offers a massive military community, excellent VA healthcare, and strong veteran support. While western Washington has higher housing costs and sales tax, the overall tax savings are substantial. Eastern Washington (Spokane) offers even more affordability. If you value outdoor recreation, military community, and keeping 100% of your retirement income, Washington is hard to beat.
☕ Support This Free Resource
This comprehensive guide took hours of research to compile and verify with 2026 tax laws. If it helped you plan your retirement, consider buying us a coffee to keep this resource free, accurate, and ad-free for all veterans!
Buy Us a Coffee💙 No pressure - sharing with fellow vets helps too!