REVENUE

SB 6346 The Millionaires' Tax.
One of the final acts of the 2026 legislature was passage of the Millionaires' Tax. This was historic in that most states do not have such a tax, and because the adoption process was so challenging.

In a nutshell, the tax would apply a 9.9% tax on incomes exceeding $1 million annually, with a number of exclusions from the tax. The proceeds would apply mostly to K-12 education, health care and the Working Families Tax Credit (WFTC). It will also supplement funding for local public defender budgets. It will generate more than $2 billion annually.

Washington’s very regressive tax structure severely limits the amount of revenue that could be generated to meet burgeoning needs, which are exacerbated by the massive cuts in federal funding.  Washington’s reliance on sales, property and B&O taxes is not as flexible, stable or equitable as an income tax, which is the tax base in 41 states. Only 6 other states have adopted a high-income earners’ tax, such as the Millionaires’ Tax.

Before the bill went to the floor in both chambers, the public hearing turnout was historic, a staggering 80,000-plus people signing in pro and con. When the bill got to the House floor, an historic 24-hour debate ensued before the final vote.

This tax will likely be challenged in court; but meanwhile, it not only provides an improved revenue base but also can be the beginning of a process to revise the entire tax structure so that it is more reliable, flexible and equitable.

Please reach out and thank the representatives in the House who endured the long and difficult adoption process and voted to support the bill.

 ⚠️Thank the members of the House of Representatives HERE who voted to pass SB 6346, the Millionaires’ Tax.