Thinking of Retiring in Seattle? Here Are The Costs You Need to Consider First

From a 19th-century lumber town to a 21st-century high-tech hub, Seattle has a long and rich history. Today, its thriving economy, natural beauty, and vibrant cultural scene continue to attract newcomers—including retirees—making it one of the fastest-growing metro areas in the country.  

However, Seattle can be a pricey place to retire. Investopedia’s recent analysis ranks it fourth costliest in the nation, exceeded only by New York City, Arlington, Va., and San Diego, Calif., largely due to high housing costs. 

Here’s what you need to know if you’re considering retiring in Seattle.

Understanding the Costs of Retiring in Seattle

Property Prices

The high cost of living in Seattle starts with housing prices. The median-priced home in King County, where Seattle is located, comes in at $811,200, according to the Census Bureau. According to the National Association of Realtors, that’s more than twice the April 2025 national median of $398,400

In fact, Washington state experienced the highest increase in home prices in the nation over the 40-year period from 1984 to 2024, rising by 828%, according to an Axios report based on an analysis by the website ResiClub. By contrast, the average increase nationally was 494%.

Renters also face significantly higher costs. The Census Bureau calculates median gross rent in King County at $2,035 a month, compared with a national average of $1,348.

Perhaps not surprisingly, these costs have led to a severe housing crisis. The Seattle/King County area had the fourth largest homeless population in the U.S. in 2024, according to the website USAFacts, trailing only New York City, Los Angeles City and County, and Chicago.

State and Local Taxes

While Seattle residents don’t pay state income taxes, retirees should still be aware of other tax burdens.

The Economic Policy Institute’s Family Budget Calculator estimates that a household with two adults and no children in the Seattle/Bellevue metro area will pay an average of $916 monthly in taxes.

Here is how that breaks down:

• Income taxes: Washington does not have an income tax. That means retirees aren’t taxed on their Social Security benefits or distributions from retirement plans like 401(k)s and IRAs. Another boon for many retirees: Washington doesn’t tax dividend income, either. It does tax capital gains, but only if they exceed a relatively generous threshold, currently $270,000.
• Sales taxes: On the downside, Seattle residents pay some of the highest sales taxes in the nation—a combined state, county, city, and regional transportation authority rate of 10.25%. However, several spending categories that loom large in a typical retiree’s budget are exempt, including prescription drugs and most groceries, except for prepared foods.
• Property taxes: Washington state caps property taxes at no more than 1%, and King County sets its rate at 0.84%. However, because of the high home values in the county, residents still paid an estimated annual average of $6,785 in 2023, according to the Tax Foundation.
• Estate taxes: While Washington doesn’t have an inheritance tax, it does have an estate tax, and a fairly hefty one. Washington’s estate tax kicks in on estates valued at $2,193,000 or more. The tax rate starts at 10% percent on the first $1 million and rises in several steps to 20% on any amount over $9 million. By contrast, some states, such as California, don’t have either an estate tax or an inheritance tax.

Healthcare Costs

Seattle has a wide array of healthcare facilities. For example, the Medicare.gov website lists 24 hospitals within a 25-mile radius, including the University of Washington Medical Center.

Healthcare costs in the area are in line with national averages. The U.S. Bureau of Labor Statistics found that in 2022-2023, Seattle residents had average healthcare expenses of $6,236 a year, compared with a national average of $6,402. For example, the comparable figure in San Francisco was $6,734, and in Phoenix, $7,550.

What Makes Seattle So Expensive?

High Demand for Real Estate

Seattle’s high cost of living is driven largely by housing, for which both homeowners and renters pay a substantial premium. That, in turn, is driven by the relatively high incomes enjoyed by workers in tech and related fields. By one measure, the Bureau of Labor Statistics puts the average household income in King County at $122,148, compared to a national figure of $78,538.

High Taxes

While the absence of a state income tax may be alluring to retirees, the money to run the state, county, and city has to come from somewhere, so they make it up in other ways. That translates into unusually high sales taxes, relatively high property taxes, and especially high estate taxes for affluent retirees.

Other Costs of Living

In addition to housing costs and taxes, other everyday living expenses can add up. According to the jobs website Payscale, transportation in Seattle is 30% more expensive than the national average, groceries are 14% more expensive, and utilities 2%. Factoring in housing, it says that Seattle’s overall cost of living is 46% higher than average.

Retirement Considerations in Seattle

Pros: Access to World-Class Amenities

As befits a city of its wealth, Seattle has its share of cultural attractions, and then some. Those include major art and history museums and venues for live music, theater, and dance. It also boasts top-tier healthcare and an extensive public transit system—including light rail, streetcars, and even a monorail—that makes it easy to get around.

Cons: High Cost of Living and Housing

As mentioned, housing in Seattle is unusually expensive, whether you buy or rent. Other goods and services are also on the high side.

The Bottom Line

As the “Emerald City” in the Evergreen State, Seattle could not have chosen a more appropriate color to represent itself: It takes a lot of the so-called green stuff to afford to live there.

If you have the financial means and value what Seattle offers, it can be a fantastic place to enjoy your retirement. But if cost is a concern, you may want to explore alternative destinations that provide similar amenities at a lower price point.