Economy & Taxes
Cost of Living in Washington State is 17% Higher Than the National Average
Compared to the National Average
29% higher
7% lower
12% higher
20% higher
27% higher
13% higher
Cost of Living in Washington State
Housing (Buy and Rent)
Utilities (Monthly)
Food
Healthcare
Transportation
Goods and Services
The Cost of Living in Washington’s Largest Cities Compared to the National Average
This is how much pricier or cheaper it is to live in Washington’s 12 cities compared to the national Average
Compared to the National Average
45% higher
43% higher
28% higher
24% higher
23% higher
20% higher
19% higher
18% higher
18% higher
16% higher
4% higher
2% higher
Cost of Living in Washington State
Seattle
Friday Harbor
Everett
Kent
Bellingham
Tacoma
Wenatchee
Mount Vernon
Bremerton
Olympia
Vancouver
Moses Lake
The cost of living in Washington State varies depending on the city you live in. The priciest city in Washington is Seattle, where the cost of living is 24% higher compared to the state average and 45% higher than the rest of the U.S. The cheapest mi-size city in Washington is Kennewick, with a cost of living 16% lower below the state average and 2% lower than the national average.
45% higher
43% higher
28% higher
24% higher
23% higher
20% higher
19% higher
18% higher
18% higher
16% higher
4% higher
2% higher
1% higher
1% lower
2% lower
Seattle, WA
Friday Harbor, WA
Everett, WA
Kent, WA
Bellingham, WA
Tacoma, WA
Wenatchee, WA
Mount Vernon, WA
Bremerton, WA
Olympia, WA
Vancouver, WA
Moses Lake, WA
Spokane, WA
Yakima, WA
Kennewick, WA
24% higher
22% higher
9% higher
6% higher
5% higher
3% higher
1% higher
0% higher
0% higher
1% lower
11% lower
13% lower
14% lower
15% lower
16% lower
Compared to the National Average
City, State
Compared to the State Average
Data comes from the Cost of Living Index, published by the Council for Community and Economic Research (C2ER).
The answer from the Democrat controlled Legislature is to develop and push a $17,000,000,000 new tax package in 2025 session to balance the state budget they themselves ran up. Every budget session the State of Washington generates new revenue – this cycle an additional $10,000,000,000 in new revenue over a 4-year cycle.
Democrats in the state Senate opened with a call for higher property taxes and new levies on the wealthy, among others. Once again Democrats attack the state’s wealthiest to invest in state public schools and public safety, and the “needs of the people of our state”. Nowhere, ever do the Democrats talk about the poor results they’ve generated or ever talk about reducing spending, which they continue to spend beyond revenues every budget cycle.
Additional taxes the propose:
Property tax – increasing the 1% limit enacted into law to a level of 3%.
Business tax – Seattle larger employers would pay a 5% payroll tax about social security; about 5289 businesses
Wealth tax – for individuals with wealth about $50 million - $10 on every $1,000 of assessed value, including stocks, bonds, exchange-traded funds and mutual funds
Sales tax – reducing the state sales tax from 6.5% to 6% - calculate the actual savings, which isn’t much
And more – up to 20 new taxes
Economics is based on the concept of supply and demand. We are a free market economy in goods and services. The law of supply and demand says that supply will rise or fall to meet levels of demand over time. If consumers want more of something suppliers will make more of it until supply meets demand and demand decreases.
Basic facts in Washington State:
The state is collecting more revenue than it ever has
In the past 10 years, state tax collections have increased by 94%
At the same time, state spending has gone up 114%
State spending per capita during the same time has grown from $6,000 to $9,000
During the same time median household income has grown by 58%
Washington State has the 3rd highest cost of living in the nation
Since 2021:
Consumer prices in the state have grown to the 5th most of any state in the nation
Gas prices are among the highest in the nation
Child care costs have increased 21% and are the 3rd highest in the nation
Food prices are up 20% and are 4th highest in the nation
Housing costs are 5th highest in the nation
state spending has increased by nearly 40%
In Washington State, small business hired 1.3% fewer workers in 2024; loss of 14,600 jobs since 2022.
The overall workforce in the state shrank by 67,569 workers 2023 - 2024. The unemployment rate increased from 4% to 4.6% over the same period
New business starts are down by 40% since 2019.
Washington State's profit margin for 1.5%, as opposed to the national average of 4%. Due to increased labor costs, increased food and beverage costs and increased regulation.
Average take home pay for owners is about $16,000 per year.
Washington will have 1.5 million job openings in the next 8 years but is not training enough people to fill them.
The state needs some 600,000 more workers with post-secondary credentials tahn it is on pace to have.
The number of high school diplomas or less will outpace the jobs available to them.
Washington State's education and training systems are not producing talent with the right skills at the right levels to keep pace.
The employer's income from products and services is finite and the only options when government mandates a wage increase are to reduce costs (employees) or raise prices.
The Center for American Progress shattered the notion that Washington is a business friendly state.
Seattle and Tacoma have the highest sales taxes in the nation.
Washington State is the 8th most regulated state in the nation.
The Washington Administrative Code (WAC) contains 201,634 restrictions and more than 18.3 million words.
This comes with consequences such as slower economic growth, more barriers to economic mobility and higher prices, among others.