October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsSlow PC?RecommendedPC slow today? Run a repair scan before it gets worseResolve common Windows issues and optimize system performance.Scan NowOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

Washington’s Millionaires’ Tax Is Law: What SB 6346 Does and When It Starts

Washington Gov. Bob Ferguson signed the millionaires' tax (SB 6346) on March 30, 2026. The 9.90% income tax starts January 1, 2028, and a repeal initiative is pending.
From TheFinanceBase Team5 min to read

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

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.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Sale
H&R Block Tax Software Deluxe + State 2025 Win/Mac [PC/Mac Online Code]
  • Tax prep made smarter: With AI Tax Assist, you can get real-time expert answers from start to finish.
  • Step-by-step Q&A and guidance
  • Quickly import your W-2, 1099, 1098, and last year's personal tax return, even from TurboTax and Quicken software
  • Itemize deductions with Schedule A
  • Accuracy Review checks for issues and assesses your audit risk

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.

Rank #2
TurboTax Deluxe Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
  • TurboTax Desktop Edition is download software which you install on your computer for use
  • Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
  • Recommended if you own a home, have charitable donations, high medical expenses and need to file both Federal & State Tax Returns
  • Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary).
  • Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)

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.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
H&R Block Tax Software Premium & Business 2025 Win [PC Online code]
  • Premium: Windows 10 or higher and Business: Windows 11
  • Tax prep made smarter: With AI Tax Assist, you can get real-time expert answers from start to finish.
  • Quickly import your W-2, 1099, 1098, and last year's personal tax return, even from TurboTax and Quicken software
  • Five free federal e-files and unlimited federal preparation and printing
  • Free e-file included for most business forms

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.

Rank #4
TurboTax Home & Business Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
  • TurboTax Desktop Edition is download software which you install on your computer for use
  • Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
  • Recommended if you are self-employed, an independent contractor, freelancer, small business owner, sole proprietor, or consultant
  • Includes 5 Federal e-files and 1 State via download. State e-file sold separately. Get U.S.-based technical support (hours may vary)
  • Live Tax Advice: Connect with a tax expert and get one-on-one advice and answers as you prepare your return (fee applies)
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)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

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.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Best Value
TurboTax Business Desktop Edition 2025, Federal Tax Return [Win11 Download]
  • TurboTax Desktop Edition is download software which you install on your computer for use
  • Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
  • Recommended if you have a partnership, own an S or C Corp, Multi-Member LLC, manage a trust or estate, or need to file a separate tax return for your business
  • Includes 5 Federal e-files. Business State forms sold separately via download. Get U.S.-based technical support (hours may vary).
  • Prepare and file your business or trust taxes with confidence

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.

Quick Recap

SaleBestseller No. 1
H&R Block Tax Software Deluxe + State 2025 Win/Mac [PC/Mac Online Code]
H&R Block Tax Software Deluxe + State 2025 Win/Mac [PC/Mac Online Code]
Step-by-step Q&A and guidance; Itemize deductions with Schedule A; Accuracy Review checks for issues and assesses your audit risk
$54.97
Bestseller No. 2
TurboTax Deluxe Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
TurboTax Deluxe Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
TurboTax Desktop Edition is download software which you install on your computer for use; Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
$79.99
Bestseller No. 3
H&R Block Tax Software Premium & Business 2025 Win [PC Online code]
H&R Block Tax Software Premium & Business 2025 Win [PC Online code]
Premium: Windows 10 or higher and Business: Windows 11; Five free federal e-files and unlimited federal preparation and printing
$99.99
Bestseller No. 4
TurboTax Home & Business Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
TurboTax Home & Business Desktop Edition 2025, Federal & State Tax Return [Win11/Mac14 Download]
TurboTax Desktop Edition is download software which you install on your computer for use; Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
$129.99
Bestseller No. 5
TurboTax Business Desktop Edition 2025, Federal Tax Return [Win11 Download]
TurboTax Business Desktop Edition 2025, Federal Tax Return [Win11 Download]
TurboTax Desktop Edition is download software which you install on your computer for use; Requires Windows 11 or macOS Sonoma or later (Windows 10 not supported)
$189.99

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
Windows Errors? Fix Them Before They SpreadFree repair scan
Outdated Drivers Are Slowing You DownFree scan - exact matches

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.