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Washington Approves 9.9% Tax on Millionaires for 2028

3/16/2026

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Summary

Story summary

Washington state lawmakers approved a 9.9% income tax on earnings over $1 million, to take effect in 2028.
The tax aims to address a budget shortfall and fund expanded tax rebates and free school meals.
Governor Bob Ferguson supports the tax, noting it would affect fewer than 0.5% of residents.
Republican leaders warn it could drive high earners out of the state and invite legal challenges.

History

Historical Context

In 2021, Washington state enacted a 7% capital gains tax on profits exceeding $250,000, affecting about 7% of residents. This marked a notable shift in a state historically without a personal income tax. The recent approval of a 9.9% tax on incomes over $1 million reflects ongoing debates about wealth distribution and public service funding, echoing past tax reform challenges.

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Story summary

Washington state lawmakers approved a 9.9% income tax on earnings over $1 million, to take effect in 2028.
The tax aims to address a budget shortfall and fund expanded tax rebates and free school meals.
Governor Bob Ferguson supports the tax, noting it would affect fewer than 0.5% of residents.
Republican leaders warn it could drive high earners out of the state and invite legal challenges.

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