Washington State Advances Controversial Income Tax on Higher Earners

Legislation would impose 9.9% levy on personal income over $1 million, with some funds earmarked for public defense services.

Published on Feb. 10, 2026

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Democrats in the Washington state Senate advanced a controversial income tax bill that would impose a 9.9% levy on personal income over $1 million. The bill, which cleared a key committee, faces opposition from Republicans who argue it will have a chilling effect on the economy. The amended version includes increased funding for public defense services and a larger tax break for smaller businesses.

Why it matters

The proposed income tax on high earners is a divisive issue in Washington state, with Democrats arguing it will help rebalance an unfair tax code and Republicans warning it could expand to lower-income residents in the future. The bill's passage through the committee marks an important first step, but it still faces additional legislative hurdles.

The details

Senate Bill 6346 passed the Senate Ways and Means Committee on a voice vote. The amended version would direct 7% of the tax revenue to public defense services, up from the original 5%, potentially generating over $200 million annually to support local public defense systems. It would also increase the tax break for smaller businesses, exempting companies grossing less than $300,000 a year from the state's main business tax, up from the original $250,000 threshold.

  • The bill will be sent to the Senate Rules Committee, where it is expected to be teed up for a vote by the full Senate in the next week.
  • Collections of the tax would start in 2029 and could total nearly $2.6 billion for the next budget, according to a fiscal analysis.
  • When fully up and running, this income tax is expected to generate $3.6 billion a year.

The players

Senate Bill 6346

The legislation that would impose a 9.9% levy on personal income over $1 million in Washington state.

Jamie Pedersen

The Senate Majority Leader who introduced the original version of the bill, which was co-sponsored by 25 other Democrats.

Drew Hansen

A Democratic state senator from Bainbridge Island who voted against the bill, saying he wants to see greater tax breaks for small businesses and individuals.

Perry Dozier

A Republican state senator from Waitsburg who argued the legislation would not make Washington state more affordable.

Chris Gildon

The lead Republican on the Ways and Means Committee, who called the tax a "ruse" and warned it could eventually be expanded to cover those making less than a million dollars.

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What they’re saying

“Nothing in this bill right now makes Washington state (more) affordable.”

— Perry Dozier, Republican state senator (dailyfly.com)

“It is a ruse. They know an income tax on anyone will be an income tax on everyone eventually.”

— Chris Gildon, Lead Republican on the Ways and Means Committee (dailyfly.com)

What’s next

The bill will be sent to the Senate Rules Committee, where it is expected to be teed up for a vote by the full Senate in the next week.

The takeaway

The proposed income tax on high earners in Washington state is a divisive issue, with Democrats arguing it will help rebalance an unfair tax code and Republicans warning it could expand to lower-income residents in the future. The bill's passage through the committee is an important first step, but it still faces additional legislative hurdles before potentially becoming law.