Washington Enacts Millionaires' Tax to Help Working Families

New law will fund free meals for K-12 students, create tax break for small businesses, and send checks to working families

Mar. 30, 2026 at 9:42pm

Got story updates? Submit your updates here. ›

A photorealistic painting of a solitary piggy bank filled with coins, bathed in warm, diagonal sunlight and deep shadows, conceptually representing the new wealth tax in Washington state.The new Millionaires' Tax in Washington state aims to create a more equitable tax system that invests in working families and small businesses.Olympia Today

Washington Gov. Bob Ferguson has signed a new Millionaires' Tax into law, creating a 9.9% tax on income over $1 million per year. The revenue from the tax will be used to provide free meals for K-12 students, the largest tax break in state history for small businesses, eliminate the sales tax on baby diapers, and send checks to nearly 500,000 working families to make life more affordable.

Why it matters

The new Millionaires' Tax aims to make Washington's tax system more fair and equitable, as the state previously had one of the most regressive tax structures in the country. By asking the wealthiest residents to pay more, the state can invest in programs and initiatives that directly benefit working families and address economic inequality.

The details

The Millionaires' Tax, passed as Senate Bill 6346, was sponsored by state Sen. Jamie Pedersen (D-43) and Rep. Joe Fitzgibbon (D-34) in the state legislature. It applies a 9.9% levy on the roughly 30,000 taxpayers in Washington who make more than $1 million per year. The new revenue is projected to raise up to $3 billion annually by 2029 when the tax takes full effect.

  • The Millionaires' Tax was signed into law by Gov. Bob Ferguson on March 30, 2026.
  • The tax will take full effect and begin generating revenue in 2028.

The players

Gov. Bob Ferguson

The Democratic governor of Washington who signed the Millionaires' Tax into law.

Sen. Jamie Pedersen

The Democratic state senator who sponsored the Millionaires' Tax legislation in the state Senate.

Rep. Joe Fitzgibbon

The Democratic state representative who sponsored the companion Millionaires' Tax bill in the state House of Representatives.

Citizen Action Defense Fund

A group that has announced its intention to sue the state over the new Millionaires' Tax.

Jackson Maynard

The executive director of the Citizen Action Defense Fund, who criticized the new tax as unconstitutional.

Got photos? Submit your photos here. ›

What they’re saying

“With this bill, we're going to begin to right a historic wrong that has plagued our state for nearly 100 years, and made our tax system one of the worst and most regressive in the entire country. We've asked Washington's working families for far too long to shoulder far too much of the tax burden for the things we care about, and we have not asked enough of our wealthiest neighbors. The Millionaires' Tax represents hope and change for people in communities like mine, and across the state.”

— Sen. Jamie Pedersen, State Senator

“Inequality is at a historic high and billionaires are walking away with ever-larger shares of our country's collective wealth. With those in charge at the federal level passing policies that only make this worse, it is incumbent upon states to come up with solutions. It is inspiring to see Washington listening to the demands of the people to create a less regressive state tax system.”

— Amy Hanauer, Executive Director, Institute on Taxation and Economic Policy

“The people of the city, the people of this state, the people of this country, they do not want to see our kids go hungry. They do not want people to sleep out on the street or lack healthcare. They want the very rich to start paying their fair share of taxes.”

— Bernie Sanders, U.S. Senator

What’s next

The new Millionaires' Tax law is expected to face legal challenges, with the Citizen Action Defense Fund already announcing plans to sue the state. However, Gov. Ferguson has expressed confidence that the benefits of the tax to working families and small businesses will resonate with the public and help defend the law.

The takeaway

Washington's new Millionaires' Tax represents a significant step towards creating a more equitable tax system that asks the wealthiest residents to contribute more, while using the revenue to invest in programs and initiatives that support working families and address economic inequality. This legislation could inspire similar efforts in other states seeking to make their tax structures more progressive.