Millionaires' Tax Signed
On March 30th, 2026, Governor Ferguson signed Washington State's first income tax into law.
This bill, commonly known as the 'millionaires' tax,' imposes a 9.9% tax on households earning more than $1 million annually.
Prior to this bill, Washington was one of nine states that did not impose an income tax. This is a significant shift in Washington's longstanding tax policy and legislation history.
After Gov. Ferguson signed the bill into law, legal challenges immediately followed. If this new legislation withstands legal challenges and potential future ballot measures, Washington State will have its first income tax starting with the 2028 tax year. This new tax will necessitate proactive tax planning and will require certain taxpayers to evaluate not only their investment strategies, but also their long-term residency status in or outside of Washington State.
Sweeney Conrad will provide updates on the latest developments related to this bill as information becomes available.
If you have questions regarding how this bill may impact your taxes, contact your Sweeney Conrad advisor.
The Sweeney Conrad Tax Services Team provides proactive tax compliance and strategic planning guidance to individuals, closely held businesses, and family enterprises throughout the Pacific Northwest.