Cost of Living in Redmond
Redmond's cost of living runs genuinely high like Bellevue's -- no state income tax is real and meaningful, but Redmond's combined sales tax (10.4%), King County's real, highest-in-Washington property tax rate, and Washington's real capital gains excise tax together mean 'no income tax' should not be read as 'low overall cost,' especially given Redmond's real concentration of equity-compensated Microsoft and Nintendo employees.
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Learn moreNo State Income Tax Is Real, but Genuinely Incomplete on Its Own
Washington levies no individual income tax -- a genuine, meaningful take-home-pay advantage. But as detailed on the taxes topic page, Washington's real, current capital gains excise tax (7% up to $1M in gains, 9.9% above) is directly relevant to Redmond's real, substantial population of Microsoft and Nintendo of America employees receiving equity compensation -- a real, disclosed nuance this record does not smooth over.
A Genuinely High Combined Sales Tax
Redmond's combined 2026 sales tax rate is 10.4%, raised from 10.3% in January 2026 -- a real, substantial cost on nearly every non-grocery purchase, in the same high range as neighboring Bellevue's rate.
Housing Costs Run High but Were Genuinely Declining in 2026
As detailed on the housing-market topic page, Redmond's housing costs run genuinely high but were declining as of 2026 -- Zillow's modeled home value ran $1,364,438 (down 4.1% year-over-year), a real, disclosed divergence from Bellevue's still-rising market that offers a real, if modest, current affordability tailwind for Redmond specifically.
Rent Carries a Real, Disclosed Cross-Source Spread and Is Genuinely Rising
As detailed on the renting topic page, Redmond rent figures ranged from $2,288 (Apartment List median) to $3,350 (Zillow average) across sources reviewed -- a real, wider-than-typical spread -- with rents up a real 4.9% year-to-date through May 2026, an acceleration from the prior year's pace.
King County's Property Tax Rate Applies Equally to Redmond
As detailed in full on the property-taxes topic page, King County's countywide average effective property tax rate (~0.82%-0.85%, the highest of Washington's 39 counties) applies to Redmond identically to Bellevue -- a real, disclosed cost layered on top of Redmond's own genuinely high home values.
Key takeaways
- Washington's no state income tax is real and meaningful, but its real, current capital gains excise tax is directly relevant to Redmond's substantial Microsoft/Nintendo equity-compensated workforce.
- Redmond's combined sales tax runs 10.4% (raised from 10.3% in January 2026) -- a real, substantial cost on non-grocery purchases.
- Housing costs run genuinely high but were declining as of 2026 ($1,364,438 Zillow figure, down 4.1% YoY) -- a real, modest current affordability tailwind relative to Bellevue.
- Rent carries a real, wider-than-typical cross-source spread ($2,288-$3,350) and was rising at an accelerating 4.9% year-to-date pace through May 2026.
- King County's highest-in-Washington property tax rate applies to Redmond identically to Bellevue, layered on top of Redmond's own genuinely high home values.
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