Adjusting the estate tax exclusion amount for inflation.

HB 1375 adjusts Washington's estate tax exclusion amount annually for inflation, directly affecting Washington residents whose estates exceed the exclusion threshold. Starting August 1, 2025, the exclusion amount (currently $2,959,000) will automatically increase each year based on the Seattle-area consumer price index, calculated by multiplying the base amount by (1 + inflation percentage) and rounding to the nearest $1,000. This change ensures the exclusion keeps pace with rising costs, preventing unintended tax increases for estates of decedents dying in 2026 and beyond. The bill takes effect August 1, 2025, and applies to Washington residents' taxable estates.