Washington Governor Signs Millionaires Tax Into Law

Opponents vow legal and ballot challenges to new 9.9% levy on earnings over $1 million

Mar. 31, 2026 at 8:28am

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Washington Governor Bob Ferguson has signed into law a new high-earners income tax, enacting a 9.9% levy on earnings of more than $1 million. The new tax is set to take effect in 2028, and has already sparked a campaign of legal and ballot challenges from opponents.

Why it matters

The millionaires tax is seen as a major step in rebalancing Washington's tax code, which has long been criticized for being regressive and placing a disproportionate burden on lower and middle-income residents. However, the new law is expected to face fierce opposition from high-wealth individuals and groups who argue it will drive businesses and jobs out of the state.

The details

The new law will impose a 9.9% tax on earnings over $1 million, starting in 2028. Supporters argue the tax is necessary to address income inequality and provide more funding for education, healthcare, and other public services. Opponents, however, have vowed to challenge the law through legal action and potential ballot measures.

  • Governor Ferguson signed the millionaires tax into law on March 31, 2026.
  • The new 9.9% tax on earnings over $1 million is set to take effect in 2028.

The players

Bob Ferguson

The Governor of Washington who signed the millionaires tax into law.

Washington State

The state that has enacted the new high-earners income tax.

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What they’re saying

“This is truly a historical step forward in rebalancing our tax code. It's the right thing to do for Washington's working families. It's the right time to do it. It's the right policy.”

— Bob Ferguson, Governor of Washington

What’s next

Opponents of the millionaires tax have vowed to challenge the law through legal action and potential ballot measures, setting the stage for a prolonged political battle over the new tax.

The takeaway

The enactment of Washington's millionaires tax highlights the growing national debate over income inequality and the role of progressive taxation in addressing it. The law's implementation and the outcome of the expected legal and political challenges will be closely watched by policymakers and advocates on both sides of the issue.