{"id":46741,"date":"2026-02-17T06:02:56","date_gmt":"2026-02-17T06:02:56","guid":{"rendered":"https:\/\/bondahx.com\/index.php\/2026\/02\/17\/washingtons-millionaire-tax-passes-the-state-senate\/"},"modified":"2026-02-17T06:02:56","modified_gmt":"2026-02-17T06:02:56","slug":"washingtons-millionaire-tax-passes-the-state-senate","status":"publish","type":"post","link":"https:\/\/bondahx.com\/index.php\/2026\/02\/17\/washingtons-millionaire-tax-passes-the-state-senate\/","title":{"rendered":"Washington’s ‘millionaire tax” passes the state Senate"},"content":{"rendered":"


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by Lisa Stiffler<\/a><\/strong><\/span> on

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Washington state\u2019s Legislative Building in Olympia. (GeekWire Photo \/ Brent Roraback)<\/figcaption><\/figure>\n

The so-called \u201cmillionaires tax\u201d was approved<\/a> by Washington\u2019s Senate on Monday, advancing a measure that would create a 9.9% tax applied to taxable, personal annual income that exceeds $1 million.<\/p>\n

Gov. Bob Ferguson earlier this month criticized Senate Bill 6346<\/a> for doing too little for small businesses and lower-income residents in the state. The measure passed Monday included changes that made more small businesses eligible for a business and occupation (B&O) tax exemption.<\/p>\n

\u201cThe proposal is moving in the right direction,\u201d Ferguson said in a statement. \u201cThat said, as the process moves forward in the final weeks of the legislative session, we must direct significantly more revenue directly back to hardworking Washington families and small businesses owners. I look forward to our continued partnership to make our state more affordable.\u201d<\/p>\n

The measure passed with 27 Democratic lawmakers voting yes. The 22 no votes included three Democrats.<\/p>\n

Lawmakers adopted two amendments, including one to repeal a new sales tax expansion on select services that sparked controversy in the tech industry<\/a> and a lawsuit<\/a> from Comcast last year. However, the expansion on advertising services would not be repealed as part of the amendment, which would take effect in 2030. <\/p>\n

SB 6346 marks the first time in decades that state lawmakers have pursued a personal income tax aimed at high\u2011income residents. The legislation would go into effect in two years and includes small business and low\u2011income tax breaks.<\/p>\n

The bill has drawn opposition<\/a> from some tech leaders and entrepreneurs who worry it could undermine the sector by souring Washington\u2019s relatively favorable tax laws for startup founders, investors and high-wage earners.<\/p>\n

Supporters <\/a>of the proposed law argue those fears are overblown and say the bill helps correct the state\u2019s regressive tax code, which relies heavily on property, sales and business taxes to fund education and other public programs. <\/p>\n

The bill is expected to generate an estimated $3.7 billion annually. <\/p>\n

The action comes as the state is struggling to plug a more than $2 billion budget hole with spending cuts and a slate of potential tax changes, while at the same time some of Washington\u2019s largest employers are cutting thousands of jobs<\/a> from their payrolls.<\/p>\n

SB 6346 would: <\/p>\n