Mercer Island, WA

Very High · 329

Washington · Population 25,282 · Updated March 2026

$2,464
Median Rent / Month
$202,359
Median Income
$1,884,200
Median Home Value
$2,877
Owner Costs / Month

Affordability

How far your income goes in Mercer Island

14.6%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Washington

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
6.5%
Sales Tax
0.92%
Property Tax Rate

Estimated Annual Costs

$29,568
Annual Rent
$0
State Income Tax
$17,335
Property Tax (est.)

Cost of Living Overview

Mercer Island has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 329 (where 100 equals the national median), Mercer Island residents can expect to pay median rent of $2,464/month while earning a median household income of $202,359/year.

The median home value in Mercer Island, WA is $1,884,200, with typical monthly owner costs around $2,877 including mortgage, insurance, and taxes. The median rent-to-income ratio of 14.6% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Washington has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 6.5% sales tax rate and 0.92% effective property tax rate, the overall tax environment helps keep costs manageable in Mercer Island.

Frequently Asked Questions

Common questions about living costs in Mercer Island

What is the cost of living in Mercer Island, WA?
The cost of living index in Mercer Island, WA is 329 (US average = 100). Median monthly rent is $2,464, median household income is $202,359/year, and the median home value is $1,884,200.
Is Mercer Island, WA affordable?
No, Mercer Island is more expensive than the national average with a cost index of 329. The rent-to-income ratio is 14.6%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Mercer Island, WA?
The median gross rent in Mercer Island, WA is $2,464 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $29,568.
What is the median household income in Mercer Island?
The median household income in Mercer Island, WA is $202,359 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Washington?
Washington has a top income tax rate of 0%, a sales tax of 6.5%, and an effective property tax rate of 0.92%. Notably, there is no state income tax.