Governor will sign new ‘millionaires tax’ proposal, he says. Here’s what changed
Washington Gov. Bob Ferguson on Friday revealed that he’ll sign Democrats’ latest version of the proposed income tax on high earners.
Ferguson’s key focus this session — nicknamed the “millionaires tax” by the majority party — has been the subject of fierce debate. The first-term Democrat wasn’t fully happy with previous iterations, urging lawmakers to include more tax relief for working families and small businesses.
“I’m glad to say the latest floor amendment to the bill achieves these critical goals, and will help make our state more affordable,” Ferguson said in a March 6 statement. “I will sign this version of the bill.”
The proposed income tax would impose a 9.9% levy on annual household income of more than $1 million.
Supporters say the legislation is needed to help fund public education and essential services, plus to make the wealthy pay their fair share. Opponents fear that the income tax threshold would likely later be lowered to include more Washingtonians.
The announcement comes after the Washington State Standard reported earlier this week that Ferguson indicated in an email to donors that the income tax bill might not be ready in time before session ends next week — which would kick the legislative challenge into the 2027 session.
In Friday’s statement, Ferguson called out what he likes about the new approach, including an eligibility expansion to the Working Families Tax Credit, funding for free school meals, a sales tax exemption for over-the-counter medicines and a 5% investment of the income tax’s revenue to the childcare and early learning-focused Fair Start for Kids Account.
Democratic Rep. April Berg of Mill Creek sponsored the measure’s new Ferguson-backed striking amendment.
She told McClatchy Friday that she was “super happy” to learn of the governor’s statement, also noting that the legislative process isn’t over just yet.
Reports earlier this week suggested that about a dozen House Democrats were “holdouts” on the tax. Berg said she was surprised to see that reporting, and that there is “overwhelming support” for the legislation in the House.
She highlighted that the latest bill would exempt sales tax on diapers and hygiene products, and said the number of families qualifying for the Working Families Tax Credit is estimated to balloon from 350,000 to 810,000.
“We are providing historic tax relief to Washington families when they need it the most,” Berg said.
Puyallup Sen. Chris Gildon, the upper chamber’s Republican budget leader, argued in a March 6 statement that the proposal is unfair, unconstitutional and unpopular.
Sen. Nikki Torres of Pasco added that creating new taxes is not the solution to the state’s affordability problem.
Torres, the assistant Republican budget leader, noted that on personal tax returns, lots of small business owners report their business income. She said that means such a policy could hurt job creators and entrepreneurs who are crucial to local communities.
“And despite all their talk about affordability, the end result is the same old formula — more taxes, more government spending, and very little that actually lowers costs for working individuals and families,” Torres said in the statement.
Senate Bill 6346 cleared the upper chamber last month 27-22 and now awaits a vote in the House.
March 12 is the final day of the 2026 legislative session.
Editor’s note: This story has been updated with comment from Rep. April Berg and senators Chris Gildon and Nikki Torres.
This story was originally published March 6, 2026 at 11:23 AM.
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