Washington State does not impose a personal income tax, so a W-2 nurse generally has no Washington individual income-tax return for assignment wages. Federal tax remains, and a nurse resident in another income-tax state can still owe that home state tax on the same earnings.
Key takeaways
- The Washington Department of Revenue says Washington does not have a personal or corporate income tax. An agency should therefore not withhold Washington individual income tax from ordinary W-2 assignment wages.
- Washington does have business and occupation tax, sales tax, and other state taxes. Those do not turn into an employee income-tax return. A 1099 traveler needs a separate business-specific review instead of assuming the W-2 rule applies unchanged.
How Washington Travel Nurse Taxes works
The Washington Department of Revenue says Washington does not have a personal or corporate income tax. An agency should therefore not withhold Washington individual income tax from ordinary W-2 assignment wages.
Washington does have business and occupation tax, sales tax, and other state taxes. Those do not turn into an employee income-tax return. A 1099 traveler needs a separate business-specific review instead of assuming the W-2 rule applies unchanged.
Which return and records may be needed?
If Box 15 lists Washington but Box 17 shows unexpected state income-tax withholding, ask payroll for a correction promptly. Then prepare the resident return: your home state can still include Washington wages even though Washington did not tax them.
Read the complete multi-state taxes guide.
Why state residency and your federal tax home are different
A state return asks which state may tax income. The federal travel-nurse tax-home analysis asks whether you were away from a qualifying tax home and incurred duplicated living expenses. One label does not establish the other, so keep the records for each question separate.
See the travel nurse tax-home guide.
What to do before your first paycheck
- Review the first pay stub for unexpected Washington income-tax withholding.
- Save the hospital address and work dates apart from permanent-home records.
- Use the resident state’s rules—not Washington’s lack of tax—to estimate any balance.
Run the state mix in the Contract Analyzer.
FAQ
Do travel nurses pay Washington income tax?
Washington has no state personal income tax on W-2 assignment wages. Federal income and payroll taxes still apply.
Does B&O tax come out of a W-2 paycheck?
Not as individual income-tax withholding. B&O is a tax on business activity.
Can my home state tax Washington wages?
Yes, it may. The resident state’s rules control its tax on income from all sources.
Does Washington decide my federal tax home?
No. The federal tax-home test is separate from Washington’s state income-tax structure.
Sources and filing note
This is general educational information, not individualized tax advice. Tax forms and rules change; use current official instructions and consult a qualified tax professional for a multi-state or tax-home question.