Seattle Now Is Washington finally ready for an income tax?
Feb 5, 2026
Scott Greenstone, KUOW politics reporter and co-host of Sound Politics, walks through Washington’s history with income tax and the proposed millionaire’s tax. He explains the 1933 ruling shaping today’s tax system. Short takes cover who would pay, political timing, legal fights, and whether wealthy residents might leave.
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Court Ruling Locked Out Income Tax
- Washington's 1933 Supreme Court ruling treated income as property, blocking a general income tax.
- That decision pushed the state to rely heavily on sales and business taxes instead.
Blue State With No Income Tax
- Washington is now a majority-Democrat state yet still lacks a state income tax, a rare pairing nationally.
- That combination forced reliance on higher sales and business taxes to fund services.
Tax Only On Earnings Above $1M
- The proposed tax targets only income over $1 million and takes roughly 9% of each dollar above that threshold.
- Lawmakers label it a "millionaire's tax" to emphasize it affects very high earners only.