Overview
- Gov. Bob Ferguson signed the measure Monday in Olympia, creating a 9.9% tax on household income above $1 million that takes effect Jan. 1, 2028, with first payments due in April 2029.
- Supporters project roughly $3–3.5 billion a year for free K–12 meals, child care, an expanded Working Families Tax Credit, small‑business relief, and some sales‑tax rollbacks on items like diapers and over‑the‑counter drugs.
- The Citizen Action Defense Fund, which retained former Attorney General Rob McKenna, says it will sue within days, arguing Washington treats income as property that must be taxed uniformly and capped at 1%.
- Opponents are also preparing a repeal measure for the November 2026 ballot, with organizers needing more than 300,000 valid signatures by early July to qualify.
- Business groups warn of behavioral shifts, citing an AWB survey showing 44% of employers are considering moving their residence, and some realtors report a jump in high‑end listings, in a state that has historically had no broad personal income tax.