Washington state has no income tax. It just passed one for millionaires that could be a model for other states
People who live and work in Washington state don’t currently pay any income tax. But in a few years, a small group of residents will be subject to one: Washington lawmakers recently passed a bill that would impose a 9.9% tax on income earned above $1 million, which goes into effect on January 1, 2028.
The so-called millionaires tax could raise up to $4 billion annually for the state—revenue that Gov. Bob Ferguson has said could go toward free breakfast and lunch for students, as well as to working families through a tax credit.