OLYMPIA – Earlier today, Washington House Democrats launched a Frequently Asked Questions page to answer questions regarding the recently passed Millionaires Tax, SB 6346.
The new tax, which will begin collections in 2029, represents significant structural tax reform for the state. As such, the new tax has also sparked questions and concerns from Washingtonians.
“There is a lot of misinformation circulating about the Millionaires Tax,” said Rep. April Berg, Chair of the House Finance Committee. “That’s why we want to share the reality behind the tax, who will pay, how it will be administered, what the revenues will go toward, and more on this public FAQ page.”
In the simplest terms, the Millionaires Tax is a 9.9% tax on households earning over $1 million per year. According to the Department of Revenue, the tax will be paid by around 20,000 households in the state, or less than 0.25% of the wealthiest households in Washington. Estimates show the Millionaires Tax will generate around $3.5 billion annually, which will fund essential programs like education, health care, and higher education, as well as tax reductions supporting working families and small businesses.
“As I’ve been holding coffee chats in district, I’ve been hearing a lot of questions about the Millionaires Tax. The top one being whether it will eventually apply to all Washingtonians,” said Berg. “I explain that I don’t support it applying to income less than $1 million, we indexed the $1 million in the bill, and also passed an amendment clarifying the that the exemption to Initiative 2111 for the state income tax is only effective so long as it only applies to millionaire households, but I’ve heard the same questions again and again. With a public site, answers to these common questions will be more widely available.”
Members of the public can find answers to their questions on the Millionaires Tax at https://housedemocrats.wa.gov/millionaires-tax-frequently-asked-questions/.