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Washington’s 2025 Capital Gains Tax Increase: What Passed and What Was Proposed

SB 5813 enacted Washington’s 2025 tiered capital-gains tax rates. Here’s how that law differs from HB 1445, prepayment changes and 2026 ballot proposals.
From TheFinanceBase Team2 min to read
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Washington lawmakers advanced more than one capital-gains tax proposal, but the measure that became law was SB 5813. It established a more progressive rate structure for the state’s capital-gains tax and estate tax and took effect May 20, 2025. A separate bill, HB 1445, proposed a tax increase to fund the Washington Health Trust, but the available bill text does not establish that it became law.

Which capital-gains tax increase became law?

SB 5813 is the clearest answer to the headline. The Legislature’s bill history records it as Chapter 421, Laws of 2025, and the Department of Revenue’s 2025 tax legislation summary describes new tiered rates for the capital-gains tax. The law’s change is part of a broader package that also created a more progressive estate-tax rate structure.

The change is not the same as every other proposal discussed in the Legislature. To understand a claim about a Washington tax increase, check the bill number and whether it was enacted, rather than treating all proposed measures as current law.

How the main measures differ

Measure What it addressed Outcome established by the cited source
SB 5813 (2025) More progressive rate structures for capital-gains and estate taxes; the Department of Revenue identifies new tiered capital-gains rates. Enacted as Chapter 421, Laws of 2025; effective May 20, 2025.
HB 1445 (2025) Introduced language proposing a capital-gains tax increase to fund the Washington Health Trust. The introduced bill text does not establish enactment.
HB 1376 (2025–26) Allows capital-gains taxpayers to prepay before the filing deadline; this changes payment timing, not tax rates. The Department of Revenue says the change is effective June 11, 2026.
SB 5314 (2025) Modified the capital-gains tax. Enacted as Chapter 409, Laws of 2025; this is distinct from the tiered-rate measure.

The table separates rate changes from administration and other modifications. For exact provisions and current taxpayer guidance, consult the Legislature’s bill record and the Department of Revenue’s capital-gains tax information.

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What did HB 1445 propose?

HB 1445’s introduced text proposed a capital-gains tax increase intended to fund the Washington Health Trust. That identifies the proposal’s purpose, but the text alone is not proof that the bill passed or became law. Do not treat HB 1445’s proposed increase as an enacted tax obligation without an official bill history confirming enactment.

What should taxpayers understand about the changes?

Rates and payment timing are different

SB 5813 is the enacted measure associated with new tiered capital-gains rates. HB 1376, by contrast, concerns when taxpayers may pay: according to the Department of Revenue’s 2026 tax legislation summary, it allows prepayment up to six months before the filing deadline, effective June 11, 2026. A prepayment option does not itself increase a tax rate.

Check the rules that apply to your filing

For a personal tax decision, use the Department of Revenue’s current capital-gains tax guidance and the applicable filing-year instructions. Legislative summaries help identify what changed, while agency guidance explains administration. The details of a taxpayer’s liability depend on the rules that apply to that filing and the taxpayer’s circumstances.

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Are there 2026 proposals that could change the tax?

Yes. The Secretary of State’s 2026 initiatives registry includes proposals that could affect capital-gains taxation. The registry summary for IP26-204 says it would repeal the 7% tax on certain capital gains and prohibit state and local capital-gains and income taxes. These are proposed ballot measures, not enacted changes; consult the registry for their current status and exact wording.

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