OLYMPIA, Wash. — What has been dubbed the Millionaires Tax, designed to provide significant funding for schools, health care and other essential services, was passed by the Washington Senate today.
“Today was a momentous step forward. For Washington’s 1.1 million school kids, people struggling to afford health care and small businesses looking for help, that help is on the way,” Senate Majority Leader Jamie Pedersen, bill’s sponsor, said in a release.
SB 6346 targets less than 1% of the wealthiest households, imposing a 9.9% tax on income over $1 million. Households earning $1 million or less would not be affected.
The tax is projected to generate $3.7 billion annually, funding public education, early learning, child care and health care services. It also aims to provide tax cuts, including the elimination of sales tax on grooming products and exemptions for small businesses grossing less than $300,000 from the business and occupation tax starting in 2029.
An amendment by Sen. Marko Liias, repealing recent sales tax expansions, was adopted to cut taxes for retail businesses. Additionally, 7% of the revenue will support public defense systems across counties, up from the initial 5%.
A November 2025 survey by DHM Research of 500 residents shows broad support for the tax across various demographic groups.
DHM polling indicates 61% of Washingtonians support a 9.9% income tax on individuals earning over $1 million annually, with backing from 71% of Democrats, 54% of Republicans and 52% of Independents.
However, expanding this tax to include those earning $100,000 or more sees a drop in support, with only 36% maintaining their backing. Opposition grows, particularly among adults over 45, white residents and those earning more than $100,000 annually.
Despite support for a millionaire’s tax, some state leaders have labeled the bill unconstitutional with concerns that it could expand to include more taxpayers.
They said public opposition was evident, with more than 61,000 people registering against the bill during a recent hearing.
“SB 6346 is written to impose the tax on everyone, with an easily altered deduction serving as the only protection for Washingtonians with less than $1 million in taxable income. Although that deduction is for $1 million, it can be lowered or eliminated in the future with a single, simple-majority vote,” Sen Perry Dozier (R-Waitsburg) said to constituents.
Senator Republican Leader John Braun of the 20th Legislative District also stated in his newsletter that the bill leaves the door open for the tax to expand to all in Washington.
“Even worse, they included a clause in it that prevents you, the people, from overturning it through referendum,” Sen. Braun stated.
SB 6346 passed with a 27-22 vote and now moves to the House for further consideration.
