Taxes in Bellingham
Washington's no state income tax and Bellingham's own rising combined sales tax (9.2% as of July 2026, up twice during the year) apply to Bellingham residents, layered with Whatcom County's below-statewide-average effective property tax rate (0.71%).
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Learn moreNo state personal income tax
Washington has no state personal income tax -- a real, structural advantage for Bellingham residents, funded instead through sales taxes, business taxes, and the capital gains excise tax for high earners specifically.
Bellingham's rising combined sales tax
Bellingham's combined sales tax rose twice during 2026: from 9.0% to 9.1% in January, then to 9.2% in July -- Washington's 6.5% state rate plus local add-ons. This runs moderate relative to other Washington markets in this dataset (below Olympia's 10.0%, above Yakima's 8.5%).
Property tax: Whatcom County below the statewide average
Whatcom County's effective property tax rate is cited at 0.71%, below Washington's own statewide average -- a real, partial offset against Bellingham's genuinely high home prices, meaning the actual dollar property tax bill on an expensive Bellingham home can still run substantial despite the below-average rate.
The capital gains excise tax: real for high earners
Washington's capital gains excise tax (7% base rate, 9.9% above $1 million in gains as of the 2025 expansion) applies statewide, including in Bellingham -- a genuinely narrow-base tax exempting real estate and retirement accounts, but real and current for high earners.
Key takeaways
- Washington has no state personal income tax, a real, structural advantage for Bellingham residents.
- Bellingham's combined sales tax rose twice during 2026, reaching 9.2% in July.
- Whatcom County's effective property tax rate (0.71%) runs below Washington's statewide average, though the dollar bill on an expensive Bellingham home can still be substantial.
- Washington's capital gains excise tax (7%-9.9%) applies to high earners statewide, including in Bellingham.
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