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Washington Governor Bob Ferguson said on March 6, 2026, that he would sign a revised millionaires’ tax, and he did. He signed SB 6346 on March 30, 2026, and the Legislature records it as Chapter 238, Laws of 2026. The law’s main income tax, 9.90 percent on individual Washington taxable income, does not begin until January 1, 2028. A repeal initiative aimed at the November 2026 ballot was pending as of October 8, 2026, and its outcome is not known on that date.
What Ferguson said, and what he signed
The headline describes a point in the story that has passed. Ferguson’s March 6 statement set a condition: he would sign a revised version only if it sent a significant share of the revenue back to families and small businesses. A floor amendment was added to address that demand. The governor’s own statement is the primary record of the pledge, and the Legislature’s bill history is the record of enactment.
The sequence, as recorded in those sources, runs as follows:
- March 6, 2026: Ferguson said the revised floor amendment met his key conditions and that he would sign the bill. His statement said: “Any bill I sign must send a significant percentage of that revenue back to Washington families and small business owners to make life more affordable.” (Source: Office of Governor Bob Ferguson.)
- March 9–11, 2026: The House passed the amended measure. The Senate then concurred in the amendments and passed it.
- March 30, 2026: Ferguson signed SB 6346. The Legislature lists it as Chapter 238, Laws of 2026. (Source: Washington State Legislature bill status page for SB 6346.)
How the enacted tax works
Rate and tax base
SB 6346 imposes a 9.90 percent tax on an individual’s Washington taxable income. The base is defined by reference to federal adjusted gross income, with Washington-specific modifications and sourcing rules. The shorthand “10% on everything over $1 million” is inaccurate. The rate is 9.90 percent, it applies to a statutory base rather than to gross income, and exclusions, sourcing rules, deductions, and credits all affect the result. Read the statute’s definitions before estimating a liability.
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The $1 million threshold
The Legislature’s findings state that people with annual adjusted gross income below $1,000,000 will not owe the tax, and that the law is intended to reach only those at or above that line. The findings describe the threshold as the intended boundary. Confirm how the threshold operates within the statutory calculation before relying on any single-number example.
Residents and nonresidents
Residents are measured on Washington taxable income wherever it is derived. Nonresidents are measured only on income sourced to Washington. Someone who moves into or out of the state, or who earns income from Washington sources while living elsewhere, should check the sourcing provisions directly.
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Reach of the tax
The Legislature estimated that the tax would affect the wealthiest one-half of one percent of state households. That is a legislative estimate of who would be covered, not an observed result. It was not measured after enactment.
Where the revenue goes
The statute allocates collections as follows:
- Five percent goes to the county public defense funding stabilization account.
- The remainder goes to the state general fund, which the act directs toward specified sales and use tax relief, expansion of the Working Families Tax Credit, and business and occupation (B&O) tax relief.
The act’s stated intent also includes funding K-12 education, health care, higher education, human services, and other public services. Those are statements of purpose. They are not projections of what the tax will raise or how much each program will receive.
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Effective dates
Several dates apply, and they are not the same:
| Provision | Effective date | Source |
|---|---|---|
| General effective date of the act | June 11, 2026 | Washington State Legislature bill page, SB 6346 |
| 9.90% tax on Washington taxable income | Income beginning January 1, 2028 | SB 6346 as enacted |
| Sales and use tax exemption for grooming and hygiene products | January 1, 2029 | SB 6346 as enacted |
Because the income tax applies to income beginning in 2028, the June 2026 general date does not mean taxpayers owe anything under the income tax that year.
The proposal and the enacted law compared
The governor’s early framing and the statute differ on several points. The table compares them on the axes that matter for coverage.
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| Element | Proposal framing (March 6, 2026 and 2025 announcement) | Enacted SB 6346 |
|---|---|---|
| Rate and base | Not stated in the governor’s March 6 statement | 9.90% on Washington taxable income, defined from federal AGI with state modifications |
| Revenue estimate | At least $3 billion per year, per the governor’s 2025 announcement; a proposal-era estimate, not a verified outcome | No enacted-law revenue total is established in the sources used for this article |
| Revenue return | A “significant percentage” to families and small businesses, per the March 6 condition | 5% to the county public defense funding stabilization account; remainder to general fund for listed tax relief |
| Effective timing | Not stated in the governor’s March 6 statement | General date June 11, 2026; income tax from January 1, 2028 |
| Repeal and litigation | Not applicable | Repeal initiative and legal challenges reported as pending (see below) |
The repeal initiative and legal challenges
Axios reported on July 14, 2026, that initiative I-645 was likely to qualify for the November 2026 ballot after proponents submitted more than 500,000 signatures. The initiative requires 308,911 valid signatures. The same report noted legal challenges and campaigns for and against the law. Those were reported facts as of July 14. Whether the measure qualified, and what voters decide, are questions the sources used here cannot answer for October 8, 2026 or later.
Ferguson opposed repeal. Axios quoted him at a press conference as saying that repealing the tax “would be ‘going backwards.'” The quotation is a short reported remark, not a transcript.
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No court ruling on the legal challenges is established in the sources used for this article. Check the state’s official initiative records and the court dockets for the current status.
Figures and who produced them
| Figure | Attribution | What it measures and its limits |
|---|---|---|
| 9.90% rate | Washington State Legislature, 2026 | Statutory rate on Washington taxable income under SB 6346 |
| $1,000,000 annual adjusted gross income | Washington State Legislature, 2026 | Stated intended threshold; those below it are said not to owe the tax |
| One-half of one percent of households | Washington State Legislature, 2026 | Estimate of affected households, not a measured result |
| Five percent of collections | Washington State Legislature, 2026 | Share directed to the county public defense funding stabilization account |
| At least $3 billion per year; under one-half of one percent of Washingtonians | Office of Governor Bob Ferguson, 2025 | Proposal-era estimates in the governor’s initial announcement; not verified outcomes of the enacted law |
| More than 500,000 signatures submitted; 308,911 valid required | Axios, July 14, 2026 | Reported facts about the repeal initiative on that date; not a qualification result |
The Washington Department of Revenue’s 2026 legislation summary corroborates the enacted provisions administratively. For legal detail, the statute and bill history are the authoritative sources.
What to verify before planning
- Your federal adjusted gross income for the year in question, and whether the statutory threshold would apply to you under the statute’s own calculation.
- Your residency status and where your income is sourced, since residents and nonresidents are measured differently.
- The current status of I-645 and any court action in the state’s official records, because the November 2026 outcome is not known as of October 8, 2026.
Coverage of this law from early 2026 often uses the future tense. Treat any article that still says the governor “will sign” as out of date.
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