Could Washington’s New 9.9% Tax Affect You?
(What High Earners Should Know)
Disclaimer: This article is for general educational purposes only. It is not legal advice. Outcomes depend on individual facts and circumstances.
Washington Senate Approves 9.9% Tax on Income Over $1 Million
Washington lawmakers have advanced a proposal that would impose a 9.9% tax on personal income over $1 million. Although the measure is not law yet, it reflects a major potential change in Washington’s tax landscape.
Key Takeaways
The tax would apply only to income above $1 million
The first $1 million would remain untaxed
It would begin in 2028, if enacted
It may affect individuals, married couples, and certain business owners
Early planning may be critical
What Is Being Proposed?
The Washington State Senate approved a bill proposing a 9.9% tax on personal income above $1 million per year. If passed into law, it would significantly broaden taxation for high-income households in Washington.
Who Could Be Affected?
This proposal may impact high-income individuals, married couples, and business owners whose income flows through entities such as LLCs, S-corporations, and partnerships.
Example
An individual earning $1.2 million would pay the 9.9% tax only on $200,000, which equals about $19,800 in additional tax.
Why Planning Now Matters
Although the proposal still faces additional steps before becoming law, individuals and families near or above the $1 million threshold should begin reviewing long-term planning strategies now rather than waiting until 2028.
Final Thought
This proposal is a reminder that tax planning should be proactive, not reactive. For those who may be affected, early review of income, business, and estate planning strategies may help reduce future risk and create more flexibility.
Click here to schedule a consultation to discuss your case and potential strategies under current U.S. and other applicable laws.
This article is a service of Nexus Law, PLLC, an immigration and business law firm based in Bellevue, Washington. We help individuals, families, students, and employers navigate complex U.S. immigration rules and policy changes with clarity and confidence. If recent USCIS or DHS updates may affect your visa, green card, travel, or work authorization, we invite you to schedule a complimentary 15-minute consultation to discuss your options and next steps.
This content is provided for general educational and informational purposes only and does not constitute legal advice. Immigration laws and policies change frequently and are highly fact-specific. Reading this article does not create an attorney-client relationship. For legal advice tailored to your individual circumstances, consult a qualified immigration attorney.