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Washington’s Millionaire Tax Heads to Governor as Seahawks GM Warns of Recruiting Hit

Opponents are preparing court challenges, citing Washington’s unsettled constitutional history on income taxes.

Overview

  • Lawmakers approved SB 6346 to levy a 9.9% tax on household income above $1 million, with Gov. Bob Ferguson indicating he will sign it; the tax takes effect in 2028 and first payments are due in 2029.
  • Seahawks general manager John Schneider said losing Washington’s no–income tax pitch will "sting" player recruitment and contract talks for pro teams in Seattle.
  • The NFL’s 2026 base salary for players with at least one accrued season is $1.005 million, putting many non-rookies over the threshold, though agents differ on how much this will sway free-agency decisions.
  • Fiscal estimates suggest roughly 20,000 to 30,000 taxpayers—about 0.5% of residents—would be affected, generating more than $3 billion annually alongside expanded rebates for lower-income households.
  • Business groups, including the NFIB, argue the measure could "cripple" small firms near the threshold and say they are preparing legal and potential ballot challenges.