Bill > HB1375

This bill adjusts the estate tax exclusion amount in Washington state to account for inflation, updating the amount that can be excluded from estate taxes for different years and establishing a method for future annual adjustments. Specifically, the bill increases the estate tax exclusion amount from $2,193,000 to $2,959,000 for decedents dying on or after August 1, 2025, and sets up a mechanism for annual inflation adjustments starting in 2026. The adjustment will be calculated by multiplying $2,959,000 by the percentage increase in the Consumer Price Index (CPI) for the Seattle urban area, with the result rounded to the nearest $1,000. If the calculation would result in the same or a lower exclusion amount as the previous year, no adjustment will be made. The bill defines key terms such as "consumer price index" and establishes that the applicable exclusion amount is determined by the date of the decedent's death. This change is intended to help protect more estate value from taxation by periodically increasing the exempt amount in line with economic changes, providing some relief to families dealing with estate taxes.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1375&Year=2025&Initiative=false