Washington State is home to eight major military installations spanning every service branch — and one of the most financially favorable income tax environments in the country for veterans and military retirees. Washington has no state income tax of any kind. Military retirement pay, active-duty pay, pension income, all wages — everything is completely tax-free at the state level. For military retirees choosing where to establish their permanent home,
Washington’s zero-income-tax environment represents a permanent, compounding financial advantage.
Joint Base Lewis-McChord in Pierce County is the only Army power projection base west of the Rocky Mountains in the continental United States — with a total installation population of approximately 210,000 making it the fourth-largest military installation worldwide by population.
No down payment required in most cases
No monthly PMI even with zero down
VA-guaranteed loans typically carry rates at or below conventional market rates
No VA-set minimum credit score; most lenders look for 580–620+
The VA restricts certain fees lenders can charge veterans
VA Loans can be assumed by a qualified buyer
Washington State Income Tax Advantage: Washington has no state income tax — period. Military retirement pay, all income, and all investment returns are completely untaxed at the state level. Washington relies on sales tax, B&O tax, and property tax instead. This is one of the most significant financial advantages for any military retiree choosing a state.
Washington Disabled Veteran Property Tax Benefits: Veterans with 80%+ service-connected disability may qualify for income-based property tax exemptions. Veterans with 100% permanent and total service-connected disability may qualify for complete property tax exemption on their primary residence (income limits apply). VA disability compensation is excluded from income calculations for these programs, significantly expanding eligibility.
Joint Base Lewis-McChord (JBLM) (Pierce County — Tacoma/Lakewood area): The only Army power projection base west of the Rocky Mountains in the continental US — and by population (approximately 210,000), the fourth-largest military installation worldwide. Formed in 2010 by merging Fort Lewis and McChord Air Force Base. Key missions:
I Corps — the Army’s Pacific-focused corps headquarters, responsible for Army operations across the Indo-Pacific
62nd Airlift Wing (McChord Field) — operates C-17 Globemaster III aircraft for worldwide strategic airlift
1st Special Forces Group — special operations forces focused on the Pacific and Indo-Pacific
Madigan Army Medical Center — major military medical facility
40,000+ service members; 120,000+ military retirees in the JBLM area
Economic impact: $7 billion, 56,000 jobs in Pierce County
Primary communities: Tacoma, Lakewood, University Place, DuPont, Yelm, Puyallup, Spanaway
Naval Base Kitsap (Kitsap County — Bremerton/Bangor): The Navy’s third-largest base, operating two sub-installations. Bangor hosts the Trident submarine fleet — the nation’s largest nuclear weapons storage depot. Bremerton hosts surface ships and Puget Sound Naval Shipyard — the Navy’s largest shipyard. 15,000+ employees. Primary communities: Bremerton, Silverdale, Poulsbo, Port Orchard, Bainbridge Island.
Naval Air Station Whidbey Island (Island County — Oak Harbor): The Navy’s primary center for EA-18G Growler electronic attack and electronic warfare operations — the electronic warfare backbone of US carrier aviation. Also home to P-8A Poseidon maritime patrol aircraft. 5,000+ employees; primary employer in Island County. Primary community: Oak Harbor.
Fairchild Air Force Base (Spokane County — Airway Heights, Eastern Washington): Home of the 92nd Air Refueling Wing (KC-135
Stratotankers) and the SERE School (Survival, Evasion, Resistance, and Escape — the only Code of Conduct/SERE C-Level course in the DoD). 5,200 jobs. Primary communities: Airway Heights, Spokane western suburbs.
Naval Station Everett (Snohomish County — Everett): Home port for Navy destroyers and frigates assigned to the Pacific Fleet in the Seattle area.
Camp Murray (Pierce County): Washington National Guard headquarters.
Yakima Training Center (Yakima County): 324,000-acre Army maneuver training area; JBLM sub-installation.
For eligible veterans using a WSHFC first mortgage alongside a VA loan, WSHFC’s Veterans DPA provides up to $10,000 at 3% interest, deferred for 30 years — typically covering closing costs for near-zero total cash to close.
The Bookspan Baker Team can pull your VA entitlement history and help you understand exactly how much purchasing power you have available today.
No. Washington has no state income tax of any kind. Military
retirement pay, all income, and all investment returns are completely tax-free at the state level.
Joint Base Lewis-McChord (JBLM) in Pierce County is the only Army power projection base west of the Rocky Mountains. With a population of approximately 210,000, it is the fourth-largest military
installation in the world. Home to I Corps (Army Pacific), the 62nd Airlift Wing (C-17s), and the 1st Special Forces Group.
Yes. For veterans with full entitlement, VA Loans have no dollar limit — you can purchase in Seattle, Bellevue, or anywhere in King County above $1,063,750 with zero down, subject to lender approval.
Yes. Veterans with 80%+ service-connected disability may qualify for income-based property tax exemptions. 100% permanently and totally disabled veterans may qualify for full exemption on their primary residence. VA disability compensation is excluded from income calculations.
