\n<\/p>\n
We are sharing the key highlights below to help you understand the potential impact.<\/p>\n
The proposal would impose a 9.9% tax<\/strong> on Washington taxable income. Only individuals<\/strong> would be subject to the tax (not corporations or pass-through entities, though owners would be taxed on their distributive shares).<\/p>\n Each individual would receive a $1 million deduction.<\/strong> Married couples or registered domestic partners would share the same $1 million deduction<\/strong>, even if filing separately. Beginning in 2030, the deduction would be indexed annually for inflation.<\/p>\n Taxable income would be calculated starting with federal adjusted gross income (AGI), then adjusting for:<\/p>\n A taxpayer is considered a resident if they:<\/p>\n Nonresidents<\/strong> would be taxed only on Washington-source income<\/strong>, including:<\/p>\n This will be particularly relevant for Oregon residents who work or operate businesses in Washington.<\/p>\n The bill includes nonrefundable credits<\/strong> to avoid double taxation:<\/p>\n Unused credits would not carryforward or be refunded.<\/p>\n This legislation is still in draft form, and revisions are likely. We recommend beginning to evaluate possible impacts on your future tax position, particularly if you expect income above the $1 million threshold, maintain multi-state activities, or anticipate changes in residency.<\/p>\n Our team will continue to monitor developments closely as the bill moves through the 2026 legislative session.<\/p>\n If you have questions about how this proposal could affect you, please contact Sonjia Barker<\/a>, State and Local Tax (SALT)<\/a> Shareholder or your Perkins advisor.<\/a><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" We are sharing the key highlights below to help you understand the potential impact. 9.9% Tax Rate The proposal would impose a 9.9% tax on Washington taxable income. Only individuals would be subject to the tax (not corporations or pass-through entities, though owners would be taxed on their distributive shares). $1,000,000 Standard Deduction Each individual […]<\/p>\n","protected":false},"author":1,"featured_media":7068183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[5348,27717,17297,4005,33260,7356,193119,50031,40237],"dealstore":[],"offerexpiration":[],"class_list":["post-7068182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-beginning","tag-millionaire","tag-proposed","tag-salt","tag-state-and-local-tax","tag-tax","tag-washington-state","tag-washington-state-tax-law","tag-washingtons"],"yoast_head":"\n$1,000,000 Standard Deduction<\/h3>\n
Washington Base Income<\/h3>\n
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Residency & Nonresident Rules<\/h2>\n
Who is a Washington resident?<\/h3>\n
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Available Tax Credits<\/h2>\n
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Compliance Requirements<\/h2>\n
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Who May Be Affected<\/h2>\n
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Next Steps<\/h2>\n