Washington Lawmakers Propose 'Millionaire's Tax' Despite Concerns

The proposed tax on earnings over $1 million faces legal and political hurdles.

Feb. 7, 2026 at 8:31am

Got story updates? Submit your updates here. ›

Washington state lawmakers have introduced a plan to impose a 9.9% tax on individual or married couple earnings over $1 million per year. However, the proposal faces significant challenges, including a constitutional prohibition on income taxes, a recently passed law banning such taxes, and a lack of support from Democratic Governor Bob Ferguson.

Why it matters

The proposed 'millionaire's tax' is intended to address the state's estimated $2 billion budget shortfall, but critics argue it would do little to solve the state's immediate financial problems and could face lengthy legal battles that further delay implementation.

The details

The bill would not begin collecting taxes until 2028 earnings, with the first payments arriving in 2029. Additionally, the state's constitution prohibits income taxes, which could invite lengthy court battles. The bill also provides limited tax relief for the general public, drawing criticism. Even Democratic Governor Ferguson, who has generally supported a wealth tax, has said he cannot support the bill as written.

  • The Legislature passed Initiative 2111 in 2024, prohibiting income taxes at the state or local level.
  • The proposed 'millionaire's tax' would begin collecting taxes on 2028 earnings, with the first payments arriving in 2029.

The players

Bob Ferguson

The Democratic governor of Washington, who has generally supported a wealth tax but has said he cannot support the current 'millionaire's tax' bill as written.

Washington State Legislature

The state's legislative body that has introduced the 'millionaire's tax' proposal, despite concerns from the governor and legal challenges.

Got photos? Submit your photos here. ›

What they’re saying

“Governor Ferguson's office estimates that a new tax would raise more than $3 billion, and approximately $230 million of that would go to tax relief. When the leader of their own party is not on board, it probably is not a good time to broach the subject.”

— Bob Ferguson, Democratic Governor

What’s next

The proposed 'millionaire's tax' bill will likely face legal challenges and continued debate in the state legislature, with the governor's opposition posing a significant obstacle to its passage.

The takeaway

The 'millionaire's tax' proposal highlights the ongoing political and legal challenges facing Washington state lawmakers as they seek to address the state's budget shortfall, with concerns over the bill's immediate impact and long-term viability.