Washington 'millionaires tax' headed for passage as Gov. Bob Ferguson says he'll sign it

Jim Brunner, The Seattle Times on Mar 6, 2026

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SEATTLE — Washington’s proposed new income tax for people earning more than $1 million a year appears headed for passage, with Gov. Bob Ferguson saying he’ll sign the latest version of the measure proposed by legislative Democrats.

Ferguson and Democratic leaders had been haggling over details of the proposal, with disagreements over how much of the tax should be given back to people in tax breaks.

In a statement Friday, Ferguson praised changes in the proposal — which supporters have dubbed a “millionaires tax” — that would expand tax breaks for some families and businesses.

The new version of the bill, made public by House Democrats on Friday morning, also says the Legislature will use some of the roughly $4 billion a year the tax is projected to bring in to pay for free school breakfast and lunch for all children in K-12 schools.

The 9.9% tax on individual earnings would effect roughly 30,000 taxpayers, with collections beginning in 2028. It would not apply to home values or retirement savings.

The revised bill also would devote 5% of the tax’s proceeds to an account dedicated to child care and early learning.

In his statement, Ferguson said he was happy with the changes to the bill, saying they would make the state more affordable for families.

“I will sign this version of the bill,” he said.

The Legislature is scheduled to adjourn next week. The proposed new income tax has cleared the state Senate and is set for a vote in the House, possibly on Monday.