WHAT DOES WASHINGTON TAX THE MOST?
Your paycheck gets taxed.
Your property gets taxed.
Your gas gets taxed.
Your groceries get taxed.
And then Washington taxes the things you need just to live in the modern world.
So which household utility gets hit the hardest?
📱 CELL PHONE
📺 CABLE / TELECOMMUNICATIONS
đź’§ WATER
⚡ ELECTRICITY
đźš˝ SEWER
The answer may surprise you.
Washington’s Public Utility Tax applies to the gross income of certain utility businesses—not simply their profits.
And the rates aren’t all the same.
According to the Washington Department of Revenue, current public-utility tax rates include:
đź’§ Water distribution: 5.029%
⚡ Electric generation/distribution: 3.8734%
đźš˝ Sewer collection: 3.852%
📡 Other public-service businesses: 1.926%
Those taxes are imposed on the utility, but businesses don’t operate in a vacuum. Taxes become another cost of providing the service—and costs ultimately work their way into the prices customers pay. (Washington Department of Revenue)
And then there’s your PHONE BILL.
Washington adds a 911 tax to telephone and wireless services.
The current statewide 911 charge is 95¢ per month per wireless number, consisting of a 25¢ state charge and a 70¢ county charge. (Washington Department of Revenue)
Then you can have additional taxes, fees and surcharges depending on the service, provider and location.
And remember:
Washington’s state sales tax alone is 6.5%, before local sales taxes are added to taxable purchases. In some Washington communities, the combined rate is over 10%. (Washington Department of Revenue)
So here’s the question taxpayers should be asking:
How much of your monthly utility bill actually pays for the service—and how much goes to government?
Because when you add up:
• Public Utility Tax
• Sales tax where applicable
• 911 taxes
• Local taxes
• Franchise fees
• Regulatory fees
• Other government-mandated charges
that $100 bill doesn’t necessarily represent $100 worth of electricity, water, phone service or entertainment.
It represents a service surrounded by a tax structure.
And Washington has built a system where the tax isn’t always obvious.
You see:
“Amount Due: $137.42.”
What you don’t necessarily see is:
“Government’s cut: $XX.XX.”
That’s the number I want to know.
Not just the advertised tax rate.
Not just the utility’s price.
The total amount Washington and local governments collect from the average household every year through these essential services.
Because if we’re going to talk about the cost of living in Washington, we should stop looking at each tax in isolation.
Add them all together.
Then ask:
How much does Washington really take from us just to keep the lights on, the water running, the sewer flowing and the phone connected?
Maybe the next tax comparison shouldn’t be:
“Which service costs the most?”
It should be:
“Which service does government tax the most?”
And that’s a number every Washington taxpayer deserves to see.


