Governor Bob Ferguson announced his support for a proposed millionaires’ tax during a December 23, 2025, press conference, framing it as a long-term policy change rather than a solution to the state’s immediate budget challenges. He emphasized that revenue from the tax would take several years to materialize and should be directed toward relief for working families and small businesses most affected by Washington’s tax structure.
The proposal would apply to individuals earning more than $1 million in annual income, not to net worth or asset values such as home equity. According to the governor’s office, fewer than one-half of one percent of Washington residents would be affected, and the tax could generate at least three billion dollars annually once fully implemented. Ferguson also expressed support for adjusting the income threshold over time to account for inflation.
The governor highlighted Washington’s reliance on regressive taxes, noting that lower-income households pay a higher share of their income in taxes than higher earners. He suggested potential uses of future revenue could include expanding the Working Families Tax Credit, reducing certain taxes on small businesses, increasing funding for public education, and removing sales taxes on essential goods.
Ferguson acknowledged that lawmakers will ultimately shape the details and said he looks forward to continued discussions during the legislative session.
