Washington tax payment plan with the DOR
Washington has no individual income tax. A self-service payment plan may be available when the balance billed by the Department of Revenue is above $100 and below $100,000, with terms of 3, 6, 9 and 12 months.
- Length of each plan
- Months available: 3, 6, 9 or 12
- Balance amount allowed
- Amount range: $100 to $100,000
- 2026 interest rate
- Annual rate: 6%
- The penalty that applies first if you are late
- 9%
No income tax, but other state taxes may still need payment
Washington has no individual income tax today. Beginning Jan. 1, 2028, a 9.9% tax will apply to adjusted gross income above $1 million, according to the Department of Revenue. Most state tax bills today come from business taxes, such as retail sales tax and business and occupation (B&O) tax.
The capital gains tax rate of 7% may also apply to you for sales of long-term holdings, for example stocks and bonds. Capital gains accounts fall under the self-service plan rules, so you may pay these bills over time.
Who can use the self-service payment plan?
The self-service plan follows strict rules. You must meet each of these conditions:
- The tax bill you received is called a Notice of Balance Due, which is the DOR’s term.
- Penalties and interest are included when your total is calculated. That total is above $100 but below $100,000.
- You can make direct debit payments from your bank account
- None of these may apply to you: bankruptcy, active tax liens or active DOR tax warrants.
- No plan is active and you did not have one during the past 12 months.
- Each of your business licenses is in good standing and no penalties appear for misuse of a reseller permit or tax avoidance.
How do I sign up for My DOR?
An account administrator completes the signup online. The My DOR payment plan instructions detail each step. After signing in, open the account Summary tab and choose Add Self-Service Payment Plan under Balance. Choose the term and bank account, then set a first payment date and any optional down payment.
After signing up, you must make your first payment within 30 days. Each month on that date, the same amount is taken from your bank account. After finishing, either print or save the confirmation. The bank details for a plan cannot be changed online.
Costs during the payment period
Penalties and interest keep growing while your plan remains active. The interest rate tables list 6% as the excise tax assessment rate for 2026.
Paying a return late causes an initial 9% penalty. The penalty waiver information shows that rate increasing to 19% and later 29% as more months pass. Waivers are limited to events beyond your control or a clean 24-month record. Usually, a lack of funds does not qualify.
When a Washington plan fails
While the plan runs, you must file and pay new returns on time and pay any new bill within five days. If you break either requirement, the plan enters default. The rest of the balance is due at once and collection is handled by a Revenue Agent instead.
The delinquent tax collection page explains what comes next. The DOR can issue a tax warrant, which is a filing and places a lien on what you own. After ten days, if payment is still outstanding, the county Superior Court receives the warrant filing. After that point, bank accounts, wages and other property can be seized by DOR.
After 30 more days without payment, a hearing may take place to revoke a business’s tax registration endorsement. For legal operation, a business needs that endorsement. Are you ineligible for the self-service plan? You can talk with a local field office about a Partial Payment Agreement. For this option, electronic payments and a financial statement are required. A tax warrant may be issued in addition.
Your IRS bill is covered by a separate plan.
The DOR plan applies only to Washington taxes. Federal tax owed to the IRS requires a separate agreement. Both sets of terms must be followed and you must make two monthly payments on time.
Nearby states
Do you owe both DOR and the IRS?
Are you running a business with both a DOR balance and an IRS balance? You can work both payment plans into one budget with help from a licensed tax pro. The call is free.
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