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Washington now has a law, not just a proposal. The House passed ESSB 6346 in March 2026, and Governor Bob Ferguson has signed it. The measure imposes a 9.90 percent income tax on individual Washington taxable income above $1 million, beginning in calendar year 2028. Whether the tax survives is still open, because a repeal initiative is on the 2026 statewide ballot and that vote has not yet taken place.
Timeline: from House vote to ballot fight
| Date | Milestone | Status |
|---|---|---|
| March 10, 2026 | House passes ESSB 6346, the bill that became the millionaires tax | Passed the House; later enacted |
| March 30, 2026 | Governor Bob Ferguson signs the measure into law | Enacted |
| Calendar year 2028 | Individual income tax begins | Scheduled start date |
| 2026 election cycle | Statewide initiative IP26-645, a repeal campaign, appears in the state’s 2026 election materials | Outcome not yet known |
Who pays the 9.9 percent, and on what income
The rate is 9.90 percent, the figure usually shortened to “9.9%.” It applies to an individual’s Washington taxable income above $1 million, as described in the House Bill Report for ESSB 6346. The rate applies only to the portion above the threshold. It is not a rate on everything an individual earns once they cross $1 million.
A hypothetical filer with $1,250,000 of Washington taxable income would have $250,000 above the threshold. At 9.90 percent, that portion produces $24,750 of tax. This is illustrative arithmetic, not a filing calculation.
The tax is an income tax, not a tax on net worth. How deductions, exclusions, residency and filing work under the law is set by the enacted text and by the Department of Revenue’s guidance on its 2026 Tax Legislation page. This article does not interpret those rules.
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The package: more than a headline rate
The measure is a bundle of tax changes, not a standalone rate increase. The Governor’s signing announcement and the Legislature’s list of final 2026 bills describe changes in these areas:
- Small-business B&O tax relief, including an accompanying B&O credit
- Sales and use taxes
- The Working Families Tax Credit
- Funding for public services
The package matters for reading the law as a whole. The income tax raises revenue, while the other provisions shape who gets relief and how the money is used. The full list of 2026 bills passed is in the Legislature’s 2026 Final Bills Passed PDF.
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Revenue projections: whose estimate it is
The Governor’s office said that more than 41.3 percent of revenue in the first full year of implementation would return to Washington families and small-business owners. That is the office’s stated projection, not a measured result. It appears in the Governor’s signing release, and readers should attribute it to that office.
The business debate: who said what
What supporters argued
The House Bill Report records supporters describing the bill as making the tax system fairer.
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What opponents warned
The same report records opponents raising concerns about long-term effects and about business decisions. These were arguments made during legislative consideration. They describe what opponents expected, not what has happened since enactment.
The “seismic shift” line
Some coverage of the vote uses the phrase “seismic shift” to describe business reaction. The official bill documents do not identify which business leader used that phrase or confirm its exact wording, so this article does not quote it or attribute it to a named person. To cite a business reaction, use the speaker’s own statement or the hearing record.
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What has not been measured
The official bill documents and state summaries do not report measured data on business relocation, investment or employment tied to this law. Any such effect is therefore unproven in either direction. The predictions on both sides remain predictions until data exists.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.The 2026 ballot fight
Washington’s 2026 election materials list IP26-645 among the statewide initiatives, so the repeal campaign makes the tax’s future a live election question. The Secretary of State’s Proposed Ballot Measure Information page and the Voter Information Portal’s initiatives list show the measure’s current status.
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The result is not known as of this writing. The tax is law, but the upcoming ballot vote could change that. Nothing in this article should be read as a repeal or as voter confirmation of the tax.
Where to check the details
- Bill text and legislative history: the SB 6346 bill summary
- Tax treatment of deductions, exclusions, residency and filing: the Department of Revenue’s 2026 Tax Legislation page
- Ballot status and measure details: the Secretary of State pages linked above
This is a policy explainer, not individual tax advice. Any liability depends on a filer’s own Washington taxable income and circumstances under the enacted law.
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