Bill > SB5405

This bill updates the estate tax exclusion amount in Washington state, adjusting the threshold at which estates become subject to taxation. Specifically, the bill sets the estate tax exclusion amount at $2,193,000 for decedents dying before January 1, 2026, and establishes a mechanism for annual inflation adjustments thereafter. The adjustment will be calculated by comparing the most recent October consumer price index (CPI) to the October 2024 CPI, with the result rounded to the nearest thousand dollars. If the calculation would not increase the exclusion amount, no adjustment will be made. The bill defines key terms such as "consumer price index" and specifies that it refers to the CPI for all urban consumers in the Seattle metropolitan area, as calculated by the U.S. Bureau of Labor Statistics. This legislation effectively helps ensure that the estate tax exclusion amount keeps pace with inflation, preventing more modest estates from being subject to taxation due to purely inflationary increases in value.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5405&Year=2025&Initiative=false