The long-term care payroll tax is a mandatory 0.58% deduction from Washington workers’ gross wages that funds the state’s WA Cares Fund, a public long-term care benefit worth up to $36,500 over your lifetime. Washington is the only state currently collecting this kind of tax, though several others are studying similar programs. The deduction has no wage ceiling, applies to nearly every W-2 worker in the state, and comes out of your paycheck alone. Your employer does not chip in.
What You Actually Pay
The rate is 0.58% of every dollar of gross wages. It is set by statute, and the pension funding council reviews it every two years with authority to lower it but not raise it above 0.58%.1Washington State Legislature. Washington Code 50B.04 – Long-Term Services and Supports Trust Program Unlike Social Security, there is no maximum taxable earnings limit. You pay the same percentage on your entire salary no matter how high it goes.2WA Cares Fund. How the Fund Works
The tax applies to all forms of compensation, including bonuses, commissions, and paid time off cashouts.3University of Washington Human Resources. WA Cares Fund – Benefits In dollar terms: a worker earning $50,000 pays about $290 a year. Someone earning $150,000 pays $870. A $500,000 earner pays $2,900. The deduction appears on every paycheck, all year long.
Who Pays and Who Doesn’t
The premium is 100% employee-funded. Your employer withholds it and sends it to the state Employment Security Department but does not match any portion.4Washington State Legislature. Washington Code 50B.04.080 – Premium Assessment Employers that fail to withhold owe the full amount plus interest and penalties.
Self-employed workers are not automatically enrolled. If you want in, you can opt in, but the deadline is June 30, 2026, or within three years of first becoming self-employed. Once you opt in, you’re locked in permanently.5WA Cares Fund. Self-Employed Elective Coverage Federal employees and workers of sovereign tribal nations generally fall outside the state mandate.
What You Get for Paying
Paying in does not automatically qualify you for benefits. You have to vest through one of three pathways set by statute:6Washington State Legislature. Washington Code 50B.04.050 – Qualified Individuals
- Contribute for at least 10 total years, working a minimum of 500 hours each year.
- Contribute for at least 3 of the last 6 years before applying, again with 500 hours annually.
- If you were born before January 1, 1968, qualify after a single year of contributions, with the benefit reduced to one-tenth of the full amount for each year contributed.
The 500-hour annual threshold works out to about 10 hours a week, so most part-time workers still accumulate qualifying years. Statewide benefits begin July 1, 2026.2WA Cares Fund. How the Fund Works
The full benefit is up to $36,500 in lifetime coverage, adjusted over time for inflation. You can spend it on home care, assisted living, home accessibility modifications, or other long-term care services. To access it, you must need help with at least three activities of daily living such as bathing, dressing, eating, or moving in and out of a bed or chair.7WA Cares Fund. Benefit Coverage
The gap between the benefit and actual care costs is worth understanding before you count on it. According to the Federal Long Term Care Insurance Program’s 2024 cost survey, home care averages about $51,000 a year and assisted living about $66,000.8LTCFEDS. Costs of Long Term Care The lifetime $36,500 covers roughly eight months of home care or six months of assisted living. It is a supplement, not a full solution.
Who Can Get an Exemption
Several categories of workers can opt out. Some exemptions are permanent, others last only while your circumstances qualify.
Permanent Exemptions
Workers who held private long-term care insurance on or before November 1, 2021 could apply for a permanent exemption, but that application window closed December 31, 2022. Approved applicants are permanently exempt and cannot re-enroll.9WA Cares Fund. Exemptions10WA Cares Fund. Workers: 4 Things You Need to Know
Veterans with a service-connected disability rating of 70% or higher also qualify for a permanent exemption.9WA Cares Fund. Exemptions
Conditional Exemptions
Three groups qualify for conditional exemptions that end when the qualifying circumstance ends:9WA Cares Fund. Exemptions
- Non-immigrant visa holders. As of January 1, 2026, workers on non-immigrant visas are automatically exempt and do not need to apply. If you want to participate anyway, notify your employer in writing.
- Out-of-state residents who live outside Washington but work in the state.
- Spouses or registered domestic partners of active-duty service members.
Conditional exemptions carry an ongoing obligation. If your situation changes, you must notify both your employer and the Employment Security Department within 90 days. If you become a permanent resident, move to Washington, or your spouse separates from the military, the exemption ends and premiums restart.10WA Cares Fund. Workers: 4 Things You Need to Know
How to Apply for an Exemption
Applications go through the SecureAccess Washington portal, the state’s login system for government services. Select the Paid Family and Medical Leave service, then choose the WA Cares exemption option.11WA Cares Fund. Apply for an Exemption
Documents depend on the exemption. Veterans need their VA disability award letter showing a 70% or higher service-connected rating. Out-of-state residents need proof of primary residence in another state, such as a driver’s license or utility bill. The application asks for your full legal name, Social Security number, and date of birth.
Once approved, you receive an approval letter with an effective date. Read this part carefully: you are personally responsible for giving that letter to every current and future employer. The state will not notify your employer for you. If you fail to submit the letter and your employer keeps withholding, those premiums do not count toward benefit eligibility and your employer has no obligation to return them.11WA Cares Fund. Apply for an Exemption That is money lost.
If your employer accidentally keeps withholding after receiving your approval letter and the effective date has passed, they are required to return the incorrect amount to you. For overpayments already sent to the state, refunds are available for amounts over $50 upon request.12WA Cares Fund. Frequently Asked Questions
Other States Considering the Same Model
Washington is the only state currently collecting this kind of tax, but several are studying similar programs. California’s task force has recommended a program with a proposed rate around 0.6% of income and a possible wage cap at $400,000, a departure from Washington’s uncapped approach. New York has introduced payroll-tax-funded long-term care trust bills in multiple sessions. Massachusetts commissioned a feasibility study in late 2024 exploring a payroll-tax model with a proposed $75,000 lifetime benefit cap. Maryland, Minnesota, and Pennsylvania have all seen bills introduced or studies commissioned, though none have advanced to a vote.
If you are in one of these states, contribution rates, benefit amounts, vesting periods, and exemption categories will all be set by your state’s own legislation. The general structure is likely to follow Washington’s: a mandatory employee payroll deduction funding a public long-term care benefit with limited lifetime coverage. Watch for task force reports and introduced bills in upcoming legislative sessions.