Article
Washington state governor announces support for millionaire’s tax
Feb. 5, 2026 · Authored by Shannon Bonner, Adam Cline
Washington Governor Bob Ferguson announced support for a 9.9% tax on income over $1 million in a single year, signaling potential significant changes to the state’s tax system.
Proposed millionaire’s tax
Washington is one of nine states without a personal income tax. However, Ferguson recently announced his support for a millionaires’ tax on those who make more than $1 million in income in a single year, adjusted for inflation.
The governor emphasized the limited impact the tax would have on the majority of Washington taxpayers. The potential tax could be used to reduce taxes on small businesses, increase specific tax credits, increase funding to K–12 education, and reduce sales tax on specific products.
Draft proposed legislation
The proposed legislation, SB 6346 and HB 2724, details the mechanics of the potential new tax. Specifically, the new tax would impose a 9.9% rate on the receipt of an individual’s Washington taxable income.
Deductions
Washington taxable income is defined as Washington base income modified by the legislation. Included in the modifications is the standard deduction, which is $1 million per individual, or in the case of spouses or domestic partners, their combined standard deduction is limited to $1 million regardless of filing status.
For nonresidents, the standard deduction is reduced based on a ratio, the numerator being the individual’s Washington base income and the denominator being the individual’s federal adjusted gross income (AGI) from all sources. The standard deduction is subject to change based on inflation.
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