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PoliticsMar 29, 2025

Washington State Is Considering Nation’s First Wealth Tax — Adding New Levies To State’s Popular “Tax the Rich” Policy

wealth taxwashington statebudget deficit

Noah Weidner

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Washington gave us Amazon, Microsoft, Starbucks, Boeing, and dozens of other great American firms. That’s one reason why Seattle, the state’s largest metro, now boasts the second-highest concentration of millionaires in the country — about 1 in 14 residents. Only, that might not be the case for much longer, as state lawmakers are considering America’s first wealth tax on financial holdings.

WA lawmakers are considering a 1% wealth tax on individuals who have more than $50M in assets, an effort that could help mend the state’s $13B budget deficit.
The new levy would be on top of a 7% tax on capital gains in excess of $270K, as well as a new excess compensation payroll tax on Seattle workers making over $1M a year.

Why, Washington? Washington is one of just eight states that has no income tax. In fact, an income tax is illegal in the state, made impossible by the state’s constitution — and residents don’t want to change that. Instead, taxing the rich is extremely popular in Washington. Four thousand filers generated $848M in state revenue for WA in 2023. However, those revenues might be diminished as wealthy residents flee the beautiful Pacific Northwest for warmer pastures in Nevada and Arizona.