Economy of Washington

Washington has the 15th-largest state economy in the US, with a GDP of approximately $700 billion. The state punches far above its population in economic significance, driven by extraordinary corporate concentration in technology and aerospace.

Technology is the dominant sector. Amazon is headquartered in Seattle and is one of the most valuable companies in the world. Microsoft is headquartered in Redmond and employs over 100,000 people in the Puget Sound region. Google, Meta, Salesforce, and dozens of other tech companies have major Seattle-area offices. The tech sector has driven Seattle's transformation into one of the wealthiest and most expensive cities in the US over the past two decades.

Aerospace and Defense — Boeing was founded in Seattle in 1916 and remains a major employer, though it has shifted some operations to South Carolina and other states. Boeing's commercial aircraft manufacturing, 737 MAX assembly in Renton, and defense contracts remain significant. The Puget Sound Naval Shipyard in Bremerton is one of the largest naval ship maintenance facilities in the US.

Agriculture — Eastern Washington produces more apples than any other US state — about 60% of total US apple production. The state is also a major producer of hops (used in beer brewing), wine grapes (Yakima Valley and Walla Walla AVAs), cherries, potatoes, and wheat.

Ports and Trade — The ports of Seattle and Tacoma (combined as the Northwest Seaport Alliance) form the fourth-largest container port complex in the US. Trade with Asia is particularly important, given Washington's position as the closest continental US state to Pacific trade routes.

Forest Products — The timber industry, while diminished from its historic peak, remains economically significant. Washington produces Douglas fir and western red cedar for construction and industrial uses.

Washington has no personal income tax, relying on a Business and Occupation Tax and high sales taxes. The tech sector's high wages and wealth concentration have made Washington's wealthy residents particularly attractive from a tax perspective — and particularly controversial, as housing costs have surged.