Washington state’s first-in-the-nation long-term care payroll tax will go into effect on July 1. The tax deduction will fund the program known as WA Cares, which will issue long-term care benefits to eligible Washington residents facing challenging care stages.
In two days, Washington workers will see a decrease in their paychecks via a 0.58% payroll tax that will fund the insurance plan passed by Washington’s Democratic-controlled legislature and approved in 2019.
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Some taxpayers may be exempt from the WA Cares Fund deduction if they purchased an eligible private long-term care insurance plan by Nov. 1, 2021, and applied for an exemption by Dec. 31, 2022, according to the Washington government.
An Evergreen State employee making $50,000 will pay $290 per year. Washingtonians can calculate what will be coming out of their paycheck and how their taxes will be contributing to the WA Cares program by visiting the Washington GOP information page.
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The fund will assist Washingtonians with care services and support costs up to $36,500 adjusted for inflation per lifetime beginning July 2026. Covered benefits will include in-home caregivers, meal deliveries, caregiver training, and other services. Starting in 2026, people will be able to create an account and apply for WA Cares benefits through the online portal.
Other states, such as California, are examining the possibility of establishing a similar program. A California task force was created in October 2019 to explore the options for implementing a statewide insurance program for long-term care. The task force issued a report with several recommendations, hoping to determine the viability by the end of the year. New York and Pennsylvania have similar proposals in the works.
