Washington Voters to Decide Whether to Repeal 9.9% 'Millionaire' Tax This November

Washington state voters will choose on Nov. 3 whether to repeal a newly enacted 9.9% income tax that applies to earnings above $1 million, setting up a high-stakes contest over taxes, state spending priorities and the region's business climate.

What the Law Would Do

Signed by Democratic Gov. Bob Ferguson in March, the law is scheduled to take effect on Jan. 1, 2028. It imposes a 9.9% tax on Washington taxable income above a $1 million deduction for both single filers and married couples filing jointly.

The Ballot Measure

Initiative 26-645, certified for the Nov. 3 ballot, would repeal the millionaire tax before it takes effect and would bar state and local governments from imposing individual income taxes in the future.

Arguments For and Against

Supporters say the tax corrects Washington’s heavy reliance on sales and property taxes, which they argue put a disproportionate burden on lower-income households. The Legislature also paired the new tax with an expanded Working Families Tax Credit, a larger small-business tax credit and planned sales-tax exemptions for diapers, grooming and hygiene products and over-the-counter medications.

Opponents argue that Washington’s long-standing lack of a personal income tax helped attract entrepreneurs and major corporations and warn the levy could be broadened over time. They point to recent high-profile relocations — including the moves of Amazon founder Jeff Bezos and Starbucks co-founder Howard Schultz to Florida — as evidence that taxation changes could influence where wealthy residents and business leaders live.

”The goal is to put an income tax on every Washingtonian,” former Republican Rep. Jaime Herrera Beutler said at a news conference backing the repeal. Hedge-fund backer Brian Heywood described the state as less attractive for business under the new law.

Budget Impact and Outlook

State estimates project the tax would generate more than $3 billion annually. Gov. Ferguson’s office says fewer than half of 1% of Washington residents would pay the levy, and the administration argues the revenue would fund credits and exemptions that provide relief to families and small businesses.

If voters repeal the law, Washington would forfeit that anticipated revenue, potentially forcing lawmakers to rethink spending plans, seek alternative revenue sources, or revisit tax-relief measures tied to the legislation. Historically, Washington voters have rejected statewide income-tax proposals for nearly a century.

Key Dates

Initiative 26-645 appears on the Nov. 3 general-election ballot. Ballots are scheduled to be mailed by Oct. 16.