Washington House Passes ‘Millionaires Tax’ on Incomes Over $1 Million

Washington state is now closer than it has been in nearly a century to enacting a tax on wages.

What the Millionaires Tax Would Do

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The Washington State Standard reported the state House approved an income tax Tuesday on households earning over $1 million a year. Senate Bill 6346 passed 51-46 with eight Democrats joining 38 Republicans in opposition.

The legislation would impose a 9.9% tax on adjusted gross household income above $1 million a year. It would take effect Jan. 1, 2028, with tax payments due from an estimated 21,000 filers starting in 2029. The threshold would be adjusted for inflation every two years.

Supporters Say Tax Will Fund Family Programs

The tax is projected to bring in between $3.5 billion and $4 billion annually.

“The Millionaires’ Tax passed by the House represents historic progress in rebalancing our unfair system. It sends significant dollars back to Washington families and small businesses. It expands the Working Families Tax Credit to 460,000 additional households," said Governor Bob Ferguson. "The Millionaires’ Tax will apply to less than one half of one percent of Washingtonians, but make life more affordable for millions. I look forward to signing it.”

Marathon Debate and Dozens of Amendments

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Republicans introduced nearly 60 amendments in an effort to filibuster the bill. Democratic lawmakers also proposed nearly two dozen amendments of their own.
In the end, the debate took nearly 24 hours.

Democrats said the bill modernizes what they call an “outdated” tax structure, including House Majority Leader Joe Fitzgibbon, D-West Seattle, one of the leaders of the legislation.

“It has been a long journey here to this moment, not just the over 24 hours that we’ve spent on this floor debating this proposal, but the 93 years that Washingtonians have struggled with a grossly outdated tax structure that falls by far the heaviest on the lowest income,” Fitzgibbon said.

Republicans Warn of Constitutional Challenges

Republicans were unhappy as the vote neared. Rep. Matt Marshall, R-Eatonville, said he could not face his constituents on this proposal.

“The people that have been opposed to this not only don’t feel their voice was heard, they see the joy about new taxes and they see no objective benefits,” he said. “We have lost the trust of the people. This is a dark day in Washington’s history.”

Legal and Ballot Challenges Expected

Republicans argued that an income tax is unconstitutional in Washington, and could one day be expanded to cover households earning less than a million dollars a year.
The legislation is expected to see challenges in court and at the ballot box.