Washington Governor Rejects Initial Income Tax Proposal

Ferguson says the legislation does not go far enough in providing tax relief for lower-income residents.

Feb. 3, 2026 at 9:47pm

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Washington Gov. Bob Ferguson has rejected the initial proposal from Democratic legislators to implement a 9.9% income tax on individual adjusted gross income over $1 million. While Ferguson supports the idea of an income tax on higher earners, he believes the current bill does not allocate enough of the revenue toward tax relief for low- and moderate-income households.

Why it matters

The proposed income tax legislation is a significant policy shift for Washington, which is currently one of nine states without a personal income tax. The debate over the bill highlights the ongoing tensions between progressives who want to overhaul the state's tax system and conservatives who staunchly oppose any new income taxes.

The details

The bill calls for the 9.9% income tax to take effect on January 1, 2028, with the first payments due in April 2029. Democrats want to use the revenue to expand a tax credit for low- and moderate-income households and sunset an existing tax surcharge on large companies. However, Gov. Ferguson says this does not go far enough in providing tax relief to Washingtonians.

  • The proposed income tax would take effect on January 1, 2028.
  • The first tax payments would be due in April 2029.

The players

Bob Ferguson

The Democratic governor of Washington who has rejected the initial income tax proposal, stating that it does not allocate enough revenue toward tax relief for lower-income residents.

Washington State Legislature

The Democratic-controlled state legislature that has introduced the initial proposal for a 9.9% income tax on individual adjusted gross income over $1 million.

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What they’re saying

“I appreciate the hard work that went into drafting this initial proposal. It's a good start, but I cannot support it in this form.”

— Bob Ferguson, Governor of Washington

“I have repeatedly insisted that a significant percentage of the revenue generated by the Millionaire's Tax must go back into the pockets of Washingtonians to make life more affordable. This proposal does not come close to doing that.”

— Bob Ferguson, Governor of Washington

What’s next

The state legislature is expected to continue negotiations with Gov. Ferguson to revise the income tax proposal and address his concerns about the allocation of revenue toward tax relief.

The takeaway

The debate over the income tax proposal in Washington highlights the ongoing tensions between progressive and conservative approaches to tax policy, as well as the challenge of balancing tax increases on the wealthy with providing meaningful relief for lower-income residents.