Washington Voters to Decide on Millionaire Income Tax
The November 3 ballot measure could impose a 9.9% tax on annual income over $1 million starting in 2028.
Updated on Oct. 29, 2026 in Taxes
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Washington voters will head to the polls on November 3, 2026, to decide on Initiative 645, a measure to repeal a scheduled 9.9% tax on individual and household income exceeding $1 million annually. The proposed tax, slated to begin in 2028, is estimated to generate $3 billion in annual revenue for state programs.
Why it matters
The outcome will determine the future funding sources for state initiatives including childcare, K-12 education, and tax credits for small businesses. Proponents and opponents remain split on whether the tax will support state services or discourage wealthy residents and businesses from remaining in Washington.
The initiative targets a 9.9% tax rate on income over $1 million, a bracket expected to affect less than 1% of the state's population. This levy is projected to raise $3 billion annually for state programs, contrasting with current budget growth from $33 billion to over $80 billion.
The players
Let's Go Washington
An advocacy group currently challenging the constitutionality of the proposed income tax in state court.
The details
If the initiative fails and the tax proceeds, it will apply exclusively to individual and household income surpassing the $1 million mark starting in 2028. This would mark a significant shift for a state that currently does not impose a traditional income tax on high earners. Opponents argue the 9.9% rate could trigger capital flight, while supporters emphasize the revenue's role in funding K-12 education and community support programs.
Timeline
Let's Go Washington filed a legal challenge against the tax in June 2026.
Washington voters will cast ballots on Initiative 645 on November 3, 2026.
The tax is scheduled to take effect in 2028 if the initiative is not passed.
Money Landscape
The debate over Initiative 645 arrives as the Washington state budget has expanded from $33 billion to over $80 billion in recent years. This measure places the state at a fiscal crossroads as it considers diversifying its revenue base compared to neighboring states like Oregon and Idaho.
Only households with annual income exceeding $1 million would be subject to the 9.9% tax, which is set to begin in 2028. Residents should monitor the upcoming vote as it impacts long-term state fiscal planning and potential tax credit availability for small businesses.
The takeaway
The November vote represents a pivotal moment for Washington's tax structure and state service funding levels. Residents should review their projected high-income earnings through 2028 and consider consulting a tax professional regarding potential liability if the initiative fails.
Further reading
Learn more about the tax environment in Washington Taxes.
More information
For official information on the upcoming vote, visit the Washington secretary of state elections page.
Source note: This article includes information reported by The Gonzaga Bulletin.
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Should states implement income taxes on high earners to fund public services?
