WA Governor Signs Tax on Millionaires into Law with Challenges Expected

Tax attorney Christopher Brown was quoted in the Puget Sound Business Journal commenting on Washington state's new so-called "millionaires tax," a levy on income above $1 million expected to generate billions in revenue but likely to face legal challenges before money begins flowing. Gov. Bob Ferguson signed the measure on March 30, 2026, formally instituting a 9.9 percent tax whose proceeds will mostly go toward the state operating budget to fund education, healthcare and other services such as small business tax relief. Mr. Brown pointed out that although estimates project 20,000 to 30,000 households will be affected by the measure, it remains unclear how many people will actually have to pay, given the state's high number of pass-through companies in which investors maintain an ownership stake and receive taxable income but cannot spend the earnings.

"The fact of the matter is, I could easily be a 10 percent owner in a business where I don't get paid any cash year to year, and yet I still have to pay tax on it," he said.

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