Is Washington State Expensive to Live In?

Washington State is often considered for relocation, and understanding its cost of living is a primary concern. This article provides an overview of the expenses associated with living in Washington, exploring how different categories of expenditures shape the financial experience for residents across the Evergreen State.

Understanding Washington’s Cost of Living

Washington State presents a higher cost of living compared to the national average. The overall cost of living in Washington is approximately 34% higher than the rest of the United States. This elevated cost is influenced by several factors. While some expenses, such as utilities, might be slightly lower than the national average, other categories drive up the overall expenditure. The average annual cost of living for a single person is estimated to be around $17,900, excluding rent. A family of four might require over $65,100 annually, also without including rental expenses.

Housing Costs Across the State

Housing constitutes the largest portion of living expenses in Washington State. The cost of housing is approximately 53% higher than the national average. The median home value in Washington ranges from about $596,514 to $670,400. For rental accommodations, the average rent is estimated to be between $1,730 and $1,769 per month.

Factors such as supply and demand, coupled with rising interest rates, have influenced home prices and rental costs. The median price of a house in Washington saw a leveling off between 2022 and 2024, partly due to rising interest rates. This trend has led to a decrease in affordability for both first-time and median homebuyers, as existing homeowners are disincentivized from selling properties due to lower historical mortgage rates. Nearly half of all renter households in Washington pay more than 30% of their income on housing, with a quarter allocating over 50% of their income to housing expenses.

Everyday Expenses

Beyond housing, daily expenses contribute to the overall cost of living in Washington. Utility costs, while slightly more affordable than the national average, still represent a monthly expenditure. The average monthly utility bill in Washington can range from approximately $401 to $613. Electricity rates have seen increases, with some residential customers experiencing an average 5% rise, amounting to about $4 per month. Natural gas customers have also faced increases, with some providers implementing a 17.29% rise in 2025.

Food expenses in Washington are higher than the national average. The average household spends around $10,202 annually on groceries, about 24.9% above the national average. This translates to an estimated monthly grocery expense of $379 per person. Transportation costs are elevated, driven by higher gas prices, which are around $4.03 to $4.37 per gallon. Car insurance premiums in Washington average about $1,895 per year for full coverage and $576 annually for minimum coverage.

Healthcare costs are another consideration, with services in Washington costing about 13% higher than the national average. The average annual per capita healthcare expense is approximately $9,013. For 2025, individual health insurance plans on the state exchange have seen an approved average rate increase of 10.7%. Childcare expenses are high, with Washington ranking among the states with the highest costs. The average annual cost for infant care is around $20,370, or about $1,698 per month, while care for a 4-year-old averages $15,720 annually, or $1,310 per month.

Washington’s Tax Structure

Washington State’s tax structure impacts the cost of living by distributing the tax burden differently than many other states. Washington does not impose a personal state income tax, meaning residents do not pay state income tax on earnings, including retirement and Social Security income. However, a 7% capital gains tax applies to the sale of certain long-term capital assets when gains exceed a specific deduction amount, which was $270,000.

To compensate for the lack of income tax revenue, the state relies on other forms of taxation, particularly sales tax and property tax. The state sales tax rate is 6.5%, but local jurisdictions can add their own sales taxes, leading to an average combined state and local sales tax rate of 9.38% to 9.43%. This combined rate is among the highest in the nation. Property taxes are assessed by counties based on the fair market value of homes, with an average effective property tax rate of 0.76% of the assessed value. The state constitution caps the property tax rate at 1% of a home’s market value, though this cap does not include special local taxes approved by voters.

Geographic Variations in Cost

The cost of living in Washington State varies across different regions. Major urban centers, such as Seattle, exhibit higher costs compared to the state average and national benchmarks. Housing costs in Seattle can be as much as 112% above the U.S. average, with median home sale prices reaching $872,000 and average one-bedroom apartments costing $2,275. This makes Seattle one of the priciest cities in the state.

In contrast, mid-sized cities and more rural areas offer a more affordable living experience. Spokane, located in Eastern Washington, is a more budget-friendly option, with housing costs potentially 29% lower than the state average and 8% lower than the national average. The average rent for a one-bedroom apartment in Spokane is around $1,290, which is below both state and national averages. Other cities like Yakima and Kennewick also present more affordable alternatives to high-priced urban centers. These regional differences mean that while the overall state cost of living is high, careful consideration of specific locations within Washington can lead to varying financial outcomes for residents.