Institute on Taxation and Economic Policy (ITEP)

Washington

State Rundown 4/1: No Fooling Around Anymore in Washington, But Cruel Pranks in South Carolina

In Washington, Gov. Bob Ferguson and lawmakers decided to stop fooling around with one of the nation’s most upside-down tax codes and finally brought to life a new millionaires’ tax, the first new income tax created in a state since 1991.

The Guardian: Washington State’s ‘Historic’ Millionaire Tax Takes Aim at Super-Rich – Will It Succeed?

March 31, 2026

This was very overdue, and people in Washington are really excited to see it,” she said. “The bottom line is that billionaires are walking away with a larger share of our economy every single year, and working people can’t afford the basics any more. This movement was growing, this moment was coming.”

Historic Millionaires’ Tax in Washington Will Make State’s Tax Code Fairer, Raise Critical Revenue

Today Washington Gov. Bob Ferguson signed into law the state’s new millionaires’ tax, propelling the Evergreen State forward toward a fairer economy with a tax code more based on the ability to pay. The legislation, which makes significant investments in public education and child care, will also expand the Working Families Tax Credit – Washington’s […]

State Rundown 3/12: Washington Lawmakers Pass Millionaires’ Tax, Expand Working Families Tax Credit

Washington is on its way to making history after the legislature approved the “millionaires’ tax,” a 9.9 percent tax on income over $1 million. The bill, which is expected to raise more than $3 billion a year, making significant investments in public education and childcare, will also expand the Working Families Tax Credit – the […]

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Washington Millionaires’ Tax, Expanded Working Families Tax Credit Make Tax Code Fairer

March 12, 2026 • By Marco Guzman, Dylan Grundman O'Neill

Washington Millionaires’ Tax, Expanded Working Families Tax Credit Make Tax Code Fairer

The Washington legislature has approved a new "millionaires' tax," a 9.9 percent tax on income over $1 million. The bill, which makes significant investments in public education and child care, will also expand the Working Families Tax Credit – the state’s EITC – to reach an additional 460,000 households.

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State Rundown 3/4: Budget Realities Set In

March 4, 2026 • By ITEP Staff

State Rundown 3/4: Budget Realities Set In

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

Republican legislators yesterday leveled a barrage of familiar arguments against the Senate Democratic majority’s proposal to create a million-dollar earners’ tax. While these charges have been made before, repetition does not make an argument true. Read more.

What Did 2025 State Tax Changes Mean for Racial and Economic Equity?

The results are a mixed bag, with some states enacting promising policies that will improve tax equity and others going in the opposite direction.