THE 9.9% INCOME TAX
WHO PAYS? YOU DO.
Individuals and families — the tax is on household income. Small business owners too: sole proprietors, partnerships, LLCs and S-corps report their business income on a personal return. Pension income can also be taxed.
The shop on your block. The contractor. The restaurant. They pay.
WHO DOESN’T PAY? CORPORATIONS.
A corporation is not a household. So it never gets the bill — no matter how much money it makes in Washington. Not a dollar. Not a dime.
THE LEGAL FRAMEWORK
ESSB 6346 was signed into law by Governor Ferguson on March 30, 2026 — a 9.9% tax on household income over $1 million, effective 2028. It is structured as a legal 'test case' to unlock a broader income tax framework.
HE WROTE THE TAX.
HE DECIDED WHO PAYS IT.
Senate Majority Leader Jamie Pedersen sponsored ESSB 6346 and has said he wanted to “force the Washington Supreme Court to reconsider its caselaw that considers income to be property.” The law also includes a provision blocking a citizen referendum, so voters cannot overturn it at the ballot box. It passed on party lines in 2026 after the longest floor debate in state history.