Washington State Ramps Up Hiring for New Income Tax on Millionaires

Legal challenges mount as state prepares to collect first-ever tax on high earners

Apr. 11, 2026 at 1:32am

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A vibrant, abstract painting featuring overlapping, geometric shapes in shades of blue, green, and orange, depicting financial documents and currency in a fractured, dynamic composition.As legal challenges mount, Washington state prepares an expansive bureaucracy to collect a new income tax on the wealthy.Olympia Today

As Washington state prepares to collect a new income tax on millionaires starting in 2029, the Department of Revenue is planning a major hiring blitz to handle the administrative workload. The state expects to spend over $557 million to implement the tax, including $45 million for hundreds of new state employees. However, the tax is facing multiple legal challenges from groups arguing it is unconstitutional.

Why it matters

The scale of the hiring and infrastructure buildout for the new income tax suggests it may be a precursor to a broader state income tax, despite assurances from lawmakers that it is a limited tax on the wealthy. The legal battles over the tax's constitutionality could have far-reaching implications for Washington's tax system.

The details

The new income tax is expected to collect between $3 billion and $4 billion annually from more than 20,000 high-income households starting in 2029. In addition to the new state jobs, the tax will also fund expanded tax credits for low-income families. However, the tax is facing multiple legal challenges, including a lawsuit filed by former Attorney General Rob McKenna and others arguing the tax is unconstitutional.

  • The income tax is set to take effect in 2029.
  • The Department of Revenue plans to begin hiring new employees this summer.
  • A lawsuit challenging the tax's constitutionality was filed on Thursday.

The players

Department of Revenue

The state agency responsible for administering and collecting the new income tax.

Rob McKenna

Former Washington State Attorney General who filed a lawsuit challenging the income tax's constitutionality.

Citizen Action Defense Fund (CADF)

A group that joined the lawsuit against the income tax.

Phil Talmadge

Former Washington Supreme Court Justice and State Senator who is part of the lawsuit against the income tax.

Brian Heywood

Founder of the group Let's Go Washington, which has its own legal challenge to the income tax.

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What they’re saying

“This was decided by the voters of Washington state when they enacted Amendment 14 to the Constitution in 1930. The express purpose of that amendment was to expand the definition of property, to cover everything, whether tangible or intangible, subject to ownership. Every Supreme Court panel that's looked at the question has reached the same conclusion. Income is subject to ownership. So, unless you think you don't have an ownership interest in your income, you have to see that income, in fact, is part of property.”

— Rob McKenna, Former Washington State Attorney General

“It's clear that they're building out an infrastructure to collect a broad-based income tax. There's no doubt about that. Any of them that say they're not doing it are just straight up lying to the public.”

— Brian Heywood, Founder, Let's Go Washington

What’s next

The legal challenges to the income tax will continue, with the state required to respond to Let's Go Washington's lawsuit by April 18 and the full state Supreme Court set to hear arguments on April 30.

The takeaway

The scale of the state's hiring and infrastructure investments for the new income tax suggests it may be a precursor to a broader state income tax, despite assurances from lawmakers. The legal battles over the tax's constitutionality will have major implications for Washington's tax system going forward.