Washington · 2027 and beyond
Washington in 2027 and beyond: what is already law, and what is still open
Voters kept the 9.9% tax on income over $1 million. It starts in 2028; nothing changes on a 2026 return. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Washington State Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Washington practitioner
Voters kept the 9.9% tax on income over $1 million. It starts in 2028; nothing changes on a 2026 return. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
| Measure | Result | What it does |
|---|---|---|
| Initiative 645 | Rejected | Would have repealed the 9.9% income tax enacted for 2028 and banned taxes on individual income. 57.93% no. |
Unofficial returns. Results become final when the state certifies them, usually by early December.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | There is no income tax return for 2026. |
| The capital gains excise tax is 7%, and 9.9% on taxable gain above $1,000,000. | |
| The estate tax exclusion is $3,000,000 with rates of 10% to 20% for deaths on or after July 1, 2026. | |
| Starting with tax year 2027 | Still no income tax. A court challenge to the 2028 tax, Petter v. State of Washington, has a hearing set for February 5, 2027. |
| Low-income seniors are exempt from the state school levy on 2027 property taxes. | |
| 2028 and later, or conditional | January 1, 2028: a 9.9% tax on Washington taxable income above a $1,000,000 standard deduction per individual or couple, with first returns due in 2029. |
| From 2029 the Working Families Tax Credit opens to everyone 18 and older. | |
| Estimated payments on the income tax begin July 1, 2030 for tax of $5,000 or more. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Washington articles.
What to watch
The February 2027 court hearing, the last obstacle before 2028. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your most recent property tax bill or assessment notice
- Your 2026 federal return, once filed, to set 2027 withholding and estimated payments against it
- Any notice from the county or the state about a 2027 exemption or rate change
Questions people ask
Does anything here change the return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
Are the election results final?
Not yet. The figures on this page are the unofficial returns. The state certifies results in the weeks after the election, and this page will be corrected if anything changes.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Washington, after the election
Voters kept the 9.9% tax on income over $1 million. It starts in 2028; nothing changes on a 2026 return.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
Questions about this article in Washington are answered by [your practice name] · [your phone] · [your email address]. We’re looking for an EA or CPA in each Washington city to hold that city’s seat and take this spot — is that you?
An invitation to Washington EAs and CPAs
These Washington pages were written by the editor from the Washington State Department of Revenue’s own publications, and they need a Washington practitioner’s eye. One enrolled agent or CPA in each Washington city holds that city’s seat: reads these pages before the filing season and is credited as a reviewer, is named on every page of their city’s edition, and answers its readers’ questions. $1,000 for the 2026 season, the charter price. Take your city’s seat (a two-minute form and a card), tell us you’re interested, write to editor@needtoknowtax.com, or read how it works.
Sources and where to check
- Washington DOR, Local sales and use tax rates, Quarter 1 2026
- Washington DOR, Services newly subject to retail sales tax (ESSB 5814)
- Washington DOR, Use tax
- Washington DOR, Estate tax tables
- Washington DOR, Capital gains tax
- Washington DOR, Capital gains tax: tax year 2025 initial collections
- WA Cares Fund, WA Cares basics for employers (0.58% premium, no cap)
- Employment Security Department, Paid Family and Medical Leave premium rate increases to 1.13% in 2026
- Washington DOR, Working Families Tax Credit application window opens Feb. 1
- Washington Legislature, House Bill Report, ESSB 6346 (2026 income tax)
- Ballotpedia News, Initiative 645 certified for the November 3, 2026 ballot
- Tax Foundation, How Tax Policy Fared on the Ballot in 2026 (unofficial results)