WA Governor Warns Income Tax Passage Could Slip to 2027

Democratic lawmakers and the governor remain at odds over how to use revenue from the proposed 9.9% tax on household income over $1 million.

Published on Mar. 4, 2026

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Washington Gov. Bob Ferguson warned on Tuesday that the income tax Democratic state lawmakers are pushing to approve by March 12 might have to wait until next year. The governor and lawmakers have been unable to resolve differences over how to use revenue from the tax, which is expected to face legal challenges and a potential ballot measure.

Why it matters

The proposed income tax has been a contentious issue in Washington state, with the governor and lawmakers at odds over how to structure the tax and allocate the estimated $3 billion in annual revenue it would generate. The dispute highlights the political challenges of implementing new taxes, even in a state with a Democratic trifecta.

The details

Gov. Ferguson has insisted that a majority of the income tax revenue be spent on tax relief for working families and tax credits for small businesses, but Democratic lawmakers are aiming for only 25-40% of the funds to go toward those purposes. The governor has scolded Democrats for failing to meet his demands as the bill has moved through the legislative process. A new version of the bill is expected if and when the full House votes on it, possibly this weekend.

  • The current legislative session is scheduled to end on March 12, 2026.
  • Collections from the proposed income tax would begin in 2029, if it is approved and survives legal and ballot challenges.

The players

Bob Ferguson

The first-term Democratic governor of Washington state who has embraced the so-called 'millionaires' tax' but is at odds with Democratic lawmakers over how to use the revenue.

Jamie Pedersen

The Democratic Senate Majority Leader who is the prime sponsor of the income tax bill and believes they will reach an agreement with the governor.

Chipalo Street

A Democratic state representative from Seattle who says there is 'a lot of consensus' between the House, Senate, and governor on how to structure the tax, but difficult choices will have to be made on how to allocate the limited revenue.

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What they’re saying

“I am committed to making sure we get this right, even if that means coming back next year to finish the bill in a longer session.”

— Bob Ferguson, Governor (dailyfly.com)

“I think we'll get there. I'm not worried. He's been very consistently saying what he needs to sign the bill. It's just a negotiation.”

— Jamie Pedersen, Senate Majority Leader (dailyfly.com)

“But the amount of money that this income tax brings in is limited. So we're going to have to make some difficult choices.”

— Chipalo Street, State Representative (dailyfly.com)

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.