Frequently asked questions about income tax

These frequently asked questions provide information about Washington’s new income tax established by Senate Bill 6346. We will add more questions and guidance as it becomes available.

About the new income tax

Does Washington currently have an individual income tax?

No. Washington does not currently have an individual income tax.

Beginning Jan. 1, 2028, Washington will have a new 9.9% tax on individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million.

Who may be subject to the new tax?

The tax applies to individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million.

Additional guidance about who must file, how income is calculated, and other requirements will be provided as it becomes available.

When does the new tax take effect?

The new tax takes effect Jan. 1, 2028. The first returns for the tax will be due in April 2029.

Does the new tax apply to everyone who earns income in Washington?

No. The new tax does not apply to all taxpayers. It applies only to individuals and married couples filing jointly with annual adjusted gross income exceeding $1 million.

How the tax revenue will be used

How much revenue is the new tax expected to generate?

The new income tax is expected to generate roughly $3 billion a year in new revenue.

What will the revenue from the new tax fund?

The Washington State Legislature decides how state funds are spent through the state budget process. Revenue from the new tax will support programs and services identified in Senate Bill 6346:

Expands the Working Families Tax Credit program:

• Lowers the eligible age limit for individuals who do not claim a qualifying child from 25 to 18 years of age.
• Increases qualifying income thresholds, which will be determined on a needs-based standard.

Exempts certain items from sales and use taxes:

• Grooming and hygiene products
• Diapers
• Over-the-counter drugs

Increases the business and occupation (B&O) tax filing threshold:

• Increases the B&O tax return filing threshold to $250,000 per year for taxpayers who are not required to collect or pay retail sales tax or public utility tax (PUT).

Funds the General Fund for:

• K-12 education
• Health care
• Higher education
• Other essential government services

Guidance and rule making

What guidance will the Department of Revenue provide about the new income tax?

We will provide guidance to help taxpayers understand their responsibilities under the new tax. Guidance will include information about who is subject to the tax, how to calculate tax liability, file returns, and meet other requirements as they become available.

Will the Department of Revenue adopt rules for the new tax?

We may adopt administrative rules to provide additional details about how the new tax will be administered. Rulemaking allows us to clarify requirements and establish procedures consistent with the law.

How can the public participate in the rulemaking process?

When we begin formal rulemaking, the public will have opportunities to review proposed rules and provide comments. Information about proposed rules, public hearings, and comment periods will be announced throughout our rulemaking process.