Tax Planning for Physicians in Seattle, WA (2026)

Physicians in Seattle pay federal tax at up to 37%, and Washington has no wage income tax (capital gains tax only). Here is how the 2026 rules apply to doctors, dentists and practice owners in Seattle, WA.

2026 at a glance for Seattle, WA physicians

State tax figures apply Washington's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.

Local taxes in Seattle

Washington has no wage income tax, but it taxes long-term capital gains above a large standard deduction (7%, with a higher rate on gains above $1 million), and practices pay the Business & Occupation tax on gross receipts. Seattle also levies its own business taxes.

We have not identified a separate Seattle income tax beyond the Washington rules above; confirm with the city if your practice or employer is located there.

State rules that apply in Seattle

No elective pass-through entity tax is available, so owners deduct state income tax only through the individual SALT deduction.

• Washington does not tax wages, but its capital gains tax applies to large gains on stocks and some business interests, so practice sale structure matters.
• Washington's Business & Occupation tax is based on gross receipts rather than profit, which affects practice owners even in years with thin margins.

Where the savings usually come from

For most Seattle physicians, federal planning drives the largest results: W-2 strategies such as 401(k)/403(b), 457(b) and the backdoor Roth; 1099 and locum planning; entity and cash balance plan design for practice owners; and real estate strategies for physicians with time to participate.

More physician tax guides

• Other Washington cities: Spokane, Tacoma, Bellevue.
• State rules: Washington physician tax guide and all 50 state guides.
• By specialty: Pain Management Physicians, Orthopedic Surgeons, Emergency Physicians, Plastic Surgeons and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.