HB 2724 proposes a new tax on Washington residents with annual adjusted gross income of $1 million or more, affecting approximately the top 0.5% of households. The tax revenue would be deposited into the state general fund to support K-12 education, health care, higher education, human services, and the working families' tax credit. Key provisions include exempting sales of family-owned small businesses and real property from the tax, aligning the state definition of taxable income with federal rules (modified for state purposes), and reducing other taxes like sales tax on essential items. The bill aims to make the state tax system less regressive by shifting more burden to high earners while maintaining current tax rates for lower-income residents.
HB 2738 would impose a 9.9% income tax on Washington residents with taxable income exceeding $1 million annually, applying to individuals (not households) with income over this threshold. The tax requires prior passage of a constitutional amendment and would generate revenue to fund public defense programs (7%) and state tax relief initiatives (93%), including sales tax relief and working families' credits. It defines "Washington taxable income" through modifications to federal adjusted gross income, with credits available for taxes paid to other states or business taxes. The bill, referred to the Finance Committee after its first reading on February 19, 2026, remains pending.
HJR 4213 proposes amending Washington's state constitution to permit an income tax. If approved, it would allow the legislature to tax income above $1 million annually (adjusted yearly for inflation), with a maximum tax rate of 9.9%. The bill sets a threshold that excludes individuals earning $1 million or less per year from the tax, and requires annual inflation adjustments to this threshold using the Seattle-area consumer price index. This constitutional change must be voted on by Washington voters in the next general election.
HB 2167 would automatically reduce Washington’s state sales tax rate if the legislature ever passes an income tax or tax on individual earnings. Specifically, the bill requires the Department of Revenue to lower the sales tax rate by an amount matching the projected revenue increase from such a new tax. This measure directly affects all Washington residents and businesses that pay sales tax, aiming to offset potential new tax burdens. The bill is conditional - it only triggers if a future income tax is enacted - and does not change current tax rates.
HB 1665 repeals Washington State's capital gains tax, which previously taxed profits from selling investments or property. The bill removes 15 specific tax code sections (RCW 82.87.010-82.87.150) and related provisions from 2021 legislation that established the tax. This change takes effect October 1, 2025, eliminating the tax requirement for affected taxpayers.
SB 5457 modifies Washington State's business tax for radio and television broadcasters. It requires broadcasters to calculate tax based on gross income minus specific advertising revenues, directly affecting FCC-licensed radio and TV stations operating in Washington. The key provision allows broadcasters to exclude national/regional ad revenue either through a standard deduction (based on U.S. Census data) or by itemizing out-of-state audience revenue using defined signal strength contours. This change, effective July 2025, adjusts how taxable income is calculated for broadcasters under the existing 0.484% business tax rate.
SB 5768 expands Washington State's Working Families Tax Credit to include all low-income residents aged 18 and older, removing previous age restrictions. It affects Washington residents who file federal tax returns, pay state sales/use tax, and meet income limits (e.g., $300 for those with no children, up to $1,200 for those with three+ children). The bill maintains existing credit amounts, phase-out rules based on income, and inflation adjustments, while adding a new eligibility category for those aged 18+ who otherwise qualify under federal tax code rules. This change directly broadens access to the refundable credit for younger adults who previously may have been excluded due to age.
HB 1214 expands Washington's Working Families' Tax Credit to include all residents aged 18 and older, removing a prior age restriction that limited eligibility to those under 18. The bill updates eligibility rules in the tax code to allow individuals who meet federal credit requirements (including filing a federal return and meeting income thresholds) to qualify regardless of age, as long as they were 18 or older by the end of the prior tax year. It maintains existing credit amounts ($300-$1,200 based on children) and calculation methods, with annual inflation adjustments. This change directly affects low-income Washington residents aged 18+ who previously may have been excluded due to age.
HB 1558 imposes a 0.484% tax on the gross income of radio and television broadcasters operating in Washington State. It directly affects broadcasters by allowing them to exclude revenue from network, national, and regional advertising from their taxable income - either through a standard deduction based on U.S. census data or by itemizing out-of-state audience revenue using specific signal strength measurements. The bill defines "broadcasting" broadly to include delivery via wire, satellite, or other means, and clarifies that excluded revenue must be calculated using standardized signal contour thresholds for different broadcast types. This tax change modifies existing business tax rules for broadcasters but does not alter other tax categories covered under the same chapter.
