A proposal to create a new “Millionaires Tax” in Washington is moving toward possible final passage after Gov. Bob Ferguson announced he would sign the measure if it reaches his desk.
The legislation, Senate Bill 6346, would create a 9.9% tax on individual income over $1 million, affecting roughly 30,000 high-income taxpayers. The tax would take effect in 2028 and is projected to generate between $3-4 billion annually for the state.
The proposal reflects the Legislature’s intent to direct a substantial share of new revenue toward K–12 public schools and higher education, including funding for free school breakfast and lunch programs for all students. Additional investments are also planned for early learning and child care.
The bill also exempts school districts from a recently approved sales tax increase on temporary staffing and live presentations — a change that helps protect already tight school district operating budgets that were unexpectedly squeezed by the tax that was instituted in 2025. Without the exemption, school districts would likely further reduce education support professional (ESP) positions who provide essential services in schools.
In addition to balancing Washington’s tax code between the super-rich and working families, supporters also argue the measure is necessary to stabilize long-term state finances. Without revenue from the millionaires tax, budget deficits in Olympia would likely become a recurring challenge in future years as costs continue to rise across public services.
The Millionaires Tax proposal remains under consideration in the Washington State Legislature. Final legislative action would have to occur before March 12, when lawmakers approach adjournment.