At a high level, Sen. Jamie Pedersen’s Senate Bill 6346, establishes a 9.9% tax on household income exceeding $1 million. Once signed by Governor Bob Ferguson by the April 4 deadline, the tax will take effect January 1, 2028, with first payments due in 2029. The bill includes a marriage penalty, as the $1 million threshold does not double for joint filers. While it excludes real estate and certain retirement income, the combined marginal rate in Seattle could reach 18%, the highest in the nation. Legal challenges are expected based on 93 years of state precedent regarding income as property.
Read the full breakdown of the bill at IMI Daily.