Washington Senate Bill Aims to Revert 2025 Estate Tax Hike

Proposal comes as state debates new income tax

Published on Feb. 18, 2026

Got story updates? Submit your updates here. ›

A new Washington state Senate bill would roll back estate tax rate increases passed in 2025, reverting the rates to prior levels. The move comes as majority Democrats in Olympia push ahead with a controversial income tax bill, raising concerns about the combined impact of tax hikes on the wealthy.

Why it matters

The estate tax changes in 2025 significantly raised rates on the wealthiest estates, with the top bracket jumping from 20% to 35%. Critics argue this has incentivized some to leave the state, reducing expected revenue. The proposed rollback reflects concerns that the tax increases may be counterproductive.

The details

Senate Bill 6347, authored by Sen. Claudia Kauffman, D-Kent, would revert the estate tax rates to where they were before the 2025 changes. The wealthiest estates, those over $9 million, would see the rate drop from 35% back down to 20%. Other brackets would see similar decreases. Supporters argue the higher rates have not generated the expected revenue, as the wealthy can more easily move their assets out of state to avoid the tax.

  • The 2025 estate tax rate increases went into effect in June 2025.
  • Estate tax payments from the 2025 changes are due on April 1, 2026.

The players

Claudia Kauffman

A Democratic state senator from Kent, Washington who authored the bill to revert the 2025 estate tax rate increases.

Mark Harmsworth

The director of the Small Business Center at the Washington Policy Center, a conservative think tank, who argues the higher estate tax rates have incentivized the wealthy to leave the state.

Got photos? Submit your photos here. ›

What they’re saying

“I suspect that the projections of the revenue that they're seeing from this estate tax is not panning out to be what they thought.”

— Mark Harmsworth, Director, Small Business Center, Washington Policy Center (dailyfly.com)

What’s next

The estate tax rollback bill, SB 6347, is expected to receive a vote in the full Washington state Senate this week, shortly after a vote on the separate income tax bill, SB 6346.

The takeaway

The proposed estate tax rollback reflects concerns that recent tax hikes on the wealthy in Washington, including a new income tax, may be driving some high-net-worth residents to leave the state, reducing expected revenue. The debate highlights the challenges states face in balancing tax policies aimed at the rich with maintaining a stable tax base.