Washington is considering a 9.9% tax on income above $1M.
With this proposal, for people making $1M+ the state and local marginal tax rate could be 18% in Seattle. Highest ever.
Add 37% federal tax, plus payroll taxes, and more than 50% is gone to taxes.
Wild.
— The Money Cruncher, CPA (@money_cruncher) January 25, 2026
For someone earning over $1M in Seattle:
- 18% state + local (if enacted)
- 37% federal top marginal rate
- Payroll taxes (Medicare, NIIT, etc.)
Washington state’s percolating “millionaire’s tax” would result in a top marginal rate of more than 18% for high-income earners in Seattle, based on the combined effects of several state and local layers.
During his State of the State address on Tuesday, Gov. Bob Ferguson prioritized a 9.9% tax on annual adjusted gross income exceeding $1 million, estimated to generate up to $3.5 billion per year to help fund education, tax relief and infrastructure.
Assuming such a tax was passed by lawmakers and signed into law by the governor, revenues wouldn’t reach state coffers for several years due to anticipated legal challenges.
https://www.fox13seattle.com/news/wa-gov-ferguson-backs-income-tax-wa-residents-earning-over-1m