Washington Enacts 'Millionaire Tax' to Fund Schools and Healthcare

The new law will impact tens of thousands of high-income earners in the state.

Mar. 31, 2026 at 3:10am by Ben Kaplan

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A detailed oil painting of a stack of tax forms and a calculator on a desk, with warm lighting and deep shadows creating a contemplative, cinematic mood that evokes the impact of new tax policies on high-income individuals.The new 'millionaire tax' law in Washington aims to generate hundreds of millions in additional revenue for public services through a targeted tax on the state's highest earners.Portland Today

Washington Governor Bob Ferguson has signed into law a new 'millionaire tax' that will impose a nearly 10% income tax on anyone making more than $1 million per year. The tax revenue is earmarked for schools, healthcare, and other public services.

Why it matters

This new tax represents a significant policy shift for Washington, which has long been one of the few states without a state income tax. The 'millionaire tax' is expected to generate hundreds of millions in new revenue annually to address funding gaps in key public sectors.

The details

The 'millionaire tax' law will require anyone earning over $1 million per year to pay an additional 9.9% state income tax on their earnings above that threshold. State officials estimate the tax will impact around 30,000 high-income residents and generate over $500 million per year in new revenue.

  • Governor Bob Ferguson signed the 'millionaire tax' into law on March 30, 2026.
  • The new tax will take effect starting with the 2027 tax year.

The players

Bob Ferguson

The current Governor of Washington state, who signed the 'millionaire tax' into law.

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What they’re saying

“This new tax will help us make critical investments in education, healthcare, and other services that will benefit all Washingtonians, not just the wealthiest among us.”

— Bob Ferguson, Governor of Washington

What’s next

The new 'millionaire tax' law will be implemented starting with the 2027 tax year, with the first payments due in April 2028.

The takeaway

Washington's adoption of a 'millionaire tax' represents a significant shift in the state's tax policy and a move to have the highest-income residents contribute more to funding public priorities like education and healthcare.