WASHINGTON STATE — Gov. Bob Ferguson signed a 9.9% income tax on personal income over $1 million into law on March 30, 2026. The tax will become effective at the start of 2028.

Ferguson signed the personal income tax measure inside the State Reception Room at the Washington State Capitol in Olympia. The tax is expected to generate at least $3 billion per year for Washington beginning in 2029, according to officials.

Washington is one of nine U.S. states that does not tax wages and salaries for individuals. The law directs revenue from the tax to fund free meals for kindergarten through 12th grade students, provide affordable childcare, and eliminate sales tax on diapers, over-the-counter drugs, and hygiene products, according to a statement from Ferguson's office.

Ferguson said that President Donald Trump's tax cuts for the wealthy made the disparity between low-income and high-income earners in Washington worse. Ferguson said that Washington ranks at the bottom of all U.S. states in tax fairness.

Brian Heywood, founder of the conservative political committee Let's Go Washington, filed a referendum against the tax to attempt to have voters repeal the law in the general election later in 2026. Seattle had 54,200 millionaires in 2023, according to U.K. wealth advisory firm Henley & Partner.

Massachusetts enacted a law in 2023 that imposes a 4% surtax on annual taxable income over $1 million. California imposes a 1% surcharge on personal income exceeding $1 million, with the revenue placed into its health care system. A 2% surcharge on personal income over $1 million is being considered at the city level in New York City.

California voters are set to vote in November on a proposal to enact a one-time 5% tax on the assets of residents with net worth of $1 billion or more. The proposed one-time 5% wealth tax would apply to assets individuals own rather than their income. Gov. Gavin Newsom opposes the proposed wealth tax on assets of residents with net worth of $1 billion or more.