Bill > HB2724

This bill establishes a new tax on individuals with an annual adjusted gross income of $1,000,000 or more, with the intent to fund essential governmental services like K-12 education, healthcare, and higher education, and to support the working families' tax credit. The tax is calculated at 9.90 percent of an individual's "Washington taxable income," which is based on federal adjusted gross income with specific modifications, and it will be imposed starting January 1, 2028. A portion of the collected revenue will go to a county public defense funding stabilization account, with the remainder deposited into the state general fund to support tax relief measures for consumers and businesses, including reductions in certain sales and business and occupation taxes, and an expansion of the working families' tax credit. The bill also includes provisions for various credits, such as for income taxes paid to other jurisdictions and for business and occupation taxes, and it aims to align with federal tax code definitions where possible, while also introducing specific exemptions for certain income sources like the sale of qualified family-owned small businesses and residential real property.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2724&Year=2025&Initiative=false