6 Things About the WA Cares Tax That Washingtonians Near Retirement Should Know

Work just under 10 hours a week for a year, and it counts toward your WA Cares benefit.

Work less, and it doesn’t.

If you’re close to retirement in Washington, that’s one of the rules that can change whether you get the full benefit, along with a birth-year cutoff and a shortcut for people who paid in recently.

Here’s what to check before you count on the benefit, so you know where you stand.

Note: This is general information, not financial or insurance advice. Program rules, premium rates and dollar amounts are subject to change, so confirm the current details with the WA Cares Fund.

1. A Premium With No Cap

Until the day you retire, WA Cares takes 0.58% of your gross wages.

Officially, it’s a premium, not a tax.

Your employer deducts it from every paycheck, so it works like a payroll tax.

Unlike Social Security’s payroll tax, which stops at a yearly earnings limit, the premium applies to every dollar you earn.

That comes to just under $25 a month on a $50,000 salary and $39 a month on $80,000.

On $120,000 in wages, the same rate comes to about $58 a month.

State law says the rate can be no greater than 0.58%.

2. The 1968 Cutoff

Under WA Cares, workers born before January 1, 1968 can earn a partial benefit even if they never reach ten years of premiums.

That covers workers born in 1967 or earlier.

You need at least one year of premiums.

Each qualifying year earns 10% of the full benefit.

With the full benefit at $36,500 in 2026, that’s $3,650 for every year.

Under this route, three years of premiums earn 30%, which comes to about $11,000.

You keep permanent access to the percentage you earn.

3. Temporary Access

Workers near retirement can reach the full WA Cares benefit by paying premiums in three of the six years before they apply.

This route is called temporary access, meant for workers who contributed recently but haven’t yet earned lifetime access.

The six-year window runs back from the day you apply.

Three premium years inside that window earn the full benefit, not the 30% share from the 1968 rule.

If you stop working for a few years before applying, your premium years can slide outside that window.

Lifetime access takes ten years of premiums.

Premiums only began in July 2023, so that route is years away for every worker.

4. Premiums After Retirement

WA Cares premiums stop as soon as you retire or leave the workforce, and they start again if you return to work.

Under a 2025 state law change, workers who leave the workforce for an extended time don’t have to restart their progress toward ten qualifying years.

That change concerns the ten-year count, which is separate from the three-of-six window.

5. The 500-Hour Rule

WA Cares credits a year toward the contribution requirement only if you work at least 500 hours in it.

That’s just under 10 hours a week on average.

Premiums are assessed on all your wages, but a year under 500 hours doesn’t count.

6. Exemption Windows

If you’re nearing retirement and hold a WA Cares exemption for private long-term care insurance, you can end it between January 1, 2026 and June 30, 2028.

Applications for those exemptions closed on December 31, 2022.

State law says an exempt worker can’t qualify for benefits unless the exemption is discontinued or rescinded.

Your employer also stops withholding premiums while an exemption is in effect, so no premium years build up.

Workers born before 1968 need at least one year of premiums for a partial benefit, so ending an exemption is what lets that first year begin.

WA Cares also exempts people who live outside Washington, spouses of active-duty service members and veterans with a service-connected disability rating of 70% or higher.

Those exemptions list no closing date.

What the Benefit Covers

WA Cares pays your chosen provider directly out of your lifetime benefit.

Providers can’t charge more than each service’s maximum rate or ask you to pay extra out of pocket.

WA Cares covers 19 services in six categories, from in-home personal care to home modifications and adaptive equipment.

If a family member helps you on a regular basis, they may qualify to become your paid caregiver.

To use benefits, you need help with three or more daily activities, such as bathing or eating.

That need has to last at least 90 days.

Applying for Benefits

The state had received 113 applications by June 22, ahead of the July 1 start of WA Cares benefits.

The state also counted 44 people deemed eligible and nearly $1.2 million in services authorized.

You can apply through a benefits account on SecureAccess Washington or by phone, and get help in person at your local Area Agency on Aging.

If you have trouble applying online, you can call 844-CARE4WA for help.

After you apply, the state checks your contribution history and sends you a letter on whether you met the requirement.

You can then schedule a conversation with a team member about your care needs.

If you’re approved, the letter lists the benefit amount you have available.

If you don’t qualify, you can appeal.

Self-Employed Opt-In

If you're self-employed, you earn WA Cares benefits only if you opt in.

The general deadline to elect coverage was June 30, 2026.

If you're newly self-employed, you have three years from becoming self-employed for the first time.

Moving Out of State

WA Cares lets you keep participating after you leave Washington, if you've worked at least 500 hours a year for three years in Washington since July 1, 2023.

You also have to elect coverage within a year of establishing a primary residence outside the state.

Once you elect coverage, you can't withdraw.

Out-of-state participants can begin receiving benefits in July 2030.