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As Washington Gets an Income Tax, the Fight to Overturn It Begins
The 9.9% tax targets about 21,000 households earning over $1 million, expected to raise $3 billion annually for tax credits and social programs, supporters say.
- On Monday, March 30, 2026, Washington Democratic Gov. Bob Ferguson signed legislation creating a 9.9% income tax on households earning above $1 million annually, marking the first such tax in nearly a century.
- Supporters view the tax as a way to reengineer a regressive tax code that forces lower-income residents to pay an outsized share of earnings. Proceeds will fund the Working Families Tax Credit and Fair Start for Kids Act.
- The tax targets an estimated 21,000 filers, generating around $3 billion annually starting in 2029. The Citizen Action Defense Fund immediately announced plans to sue, arguing the levy violates Supreme Court precedent from 1933.
- Rob McKenna, a former state attorney general, will lead the litigation against the tax. Opponents debate whether to pursue a referendum requiring roughly 200,000 voter signatures by June 10 to qualify for the November ballot.
- Brian Heywood of Let's Go Washington argues for gathering signatures this year, saying "it's crazy to wait," though some strategists recommend delaying until 2027. An initiative to the Legislature would require at least 308,911 signatures by July 2.
23 Articles
23 Articles
Bellevue Reporter
Gov. signs ‘millionaires tax’ with legal challenge close behind
Washington Democratic Gov. Bob Ferguson on March 30 signed historic legislation creating an income tax, saying it is a critical step toward making the state’s system of taxation less regressive.
As Washington gets an income tax, the fight to overturn it begins
Come Monday, Washington is expected to have a state income tax on the books for the first time in nearly a century. Then what?A legal challenge certainly, maybe two. A ballot battle as well, its timing less certain.Opponents of the much-debated 9.9% tax on households with incomes above $1 million a year are honing legal and electoral strategies to invalidate and repeal legislation that Gov. Bob Ferguson is expected to sign Monday.Their specific …
Washington Dems passed an income tax they know is unconstitutional. That was the point
Travis Kalanick chose to ditch California on Dec. 18 for a reason. The Uber co-founder relocated from San Francisco to Austin, Texas, exactly 14 days before California's would-be billionaire wealth tax residency deadline, dodging a potential $180 million hit on his $3.6 billion fortune. He made no secret of the calculation."Just to be clear, on Dec. 18, I moved to Texas. I don’t know what’s so specific about December 18, but let’s just say it’s …
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