Washington is moving from theory to reality on a new levy aimed squarely at its richest residents, and the details suggest it could bite harder than many casual observers realize. Lawmakers in Olympia are advancing a so‑called millionaire tax that would, for the first time, tie state revenue directly to high earners’ personal income and potentially reshape the state’s reputation as a tax haven for the wealthy. The political rollout has been relatively quiet, but the structure, rate and legal design signal a high‑stakes shift that could ripple from tech boardrooms to small‑business storefronts.
At its core, the proposal would impose a nearly double‑digit rate on income above a seven‑figure threshold, while pairing that hit with targeted breaks on sales and business taxes to blunt criticism that Washington leans too heavily on consumption. The fight now unfolding is less about whether millionaires should pay more and more about how far the state is willing to go in rewriting long‑standing limits on income taxation, how quickly the change will arrive, and who ultimately feels the sting.
What Washington’s millionaire tax actually does
The plan taking shape in Washington is built around a straightforward premise: individuals with very high earnings should pay a dedicated state tax on that income, while everyone below a set threshold is exempt. Lawmakers have framed the measure as a state income “Millionaire’s Tax” that would apply to people earning more than a specified amount, with the policy crafted in the capital city of Olympia and described in early Highlights as a major structural change. The core design is to leave income below the threshold untouched, then apply a new top rate only to dollars above that line, a model that mirrors how federal brackets work but is unprecedented in Washington’s modern tax code.
In legislative text, that concept translates into a 9.9% tax on personal adjusted gross Income over $1 million, with income below that level not subject to the tax at all. A parallel description of Senate Bill 6346 notes that the measure would levy a 9.9% tax on incomes above $1 million, confirming that the rate and threshold are aligned across chambers and that the new obligation would kick in only once a filer crosses that seven‑figure mark, as described in the Senate Bill summary.
The political muscle behind the proposal
The political context around this tax is as important as the rate itself. Earlier this year, Washington Governor Bob Ferguson publicly aligned himself with the concept, with one analysis noting that Gov. Bob Ferguson supports a proposed nearly 10 percent tax on incomes over $1 million and has thrown his weight behind the broader effort. A separate breakdown of the rollout underscores that Washington Governor Bob Ferguson announced support for a 9 percent Millionaire’s Tax, signaling that the governor is not just tolerating the idea but actively championing a high‑end income levy…