Democratic lawmakers in Washington are moving to reconsider a 2025 increase that raised the state’s top estate tax rate to 35%, the highest in the nation. The change, approved last year, applies to the largest estates and took effect in June.
Senate Bill 6347, introduced in early February, would roll back the increase. The measure advanced quickly through the Senate Ways and Means Committee and could soon receive a full Senate vote.
Supporters of revisiting the policy cite anecdotal reports that some high-net-worth residents are considering relocating to states with lower taxes. While state officials say it is too early to determine the revenue impact, some lawmakers have expressed concern that potential moves could also affect collections from other sources, including the capital gains tax.
The proposal comes as Democrats continue to debate additional tax measures, including a new income tax on individuals earning more than $1 million annually.
Business advocates and critics argue that recent tax changes may influence investment and residency decisions. Others maintain that tax policy design and long-term revenue stability remain central considerations as lawmakers weigh possible adjustments.
WR will continue to monitor developments and provide updates for members.
