Particle.news
Download on the App Store

Washington Legislature Sends 9.9% Tax on Income Over $1 Million to Governor

Ferguson has pledged to sign, setting up immediate legal and ballot challenges from opponents.

Overview

  • After concurring with House changes, the Senate approved SB 6346 on a 27–21 vote, following the House’s 51–46 passage after a more than 24‑hour floor fight.
  • The measure levies a 9.9% tax only on personal income above $1 million, with the tax taking effect in 2028 and first payments due in 2029.
  • State estimates cited in coverage project roughly $3–$3.7 billion in annual revenue, with backers saying fewer than one‑half of one percent of residents would pay.
  • House-added provisions include free school breakfast and lunch for K‑12 students, expanded Working Families Tax Credit eligibility, sales‑tax exemptions for hygiene items, diapers and over‑the‑counter drugs, and targeted small‑business relief.
  • Business groups warn the change could erode Washington’s tax advantage and prompt relocations, and former Starbucks CEO Howard Schultz said he has moved to Florida.