Washington Cares tax hits worker paychecks

Workers throughout Washington will start noticing their upcoming paychecks will be a little lighter, now that the state has started collecting taxes for the new Washington Cares Fund.

The new tax began on Saturday, July 1.

RELATED: What you need to know about the WA Cares Fund

The fund is the first of its kind in the United States. It aims to eventually provide funding for long-term care for aging residents.

"States across the country of all stripes — red, purple, blue — are all looking at this because everybody has a growing aging population," said Ai-jen Poo with the National Domestic Workers Alliance, noting that states such as California and Michigan are now considering similar programs.

Outside of some exemptions, Washington workers who don't have a long-term care policy will contribute 58 cents for every $100 they earn to the Washington Cares Fund.

People eligible for exemptions include military spouses and out-of-state workers.

More than $36,000 worth of benefits will be available starting in 2026. The money is for long-term care costs, including pay for homecare workers.

The tax was initially slated to start in January 2022, but Gov. Jay Inslee paused it until July 2023 so state lawmakers could revise and modify the program.