These 5 new laws take effect today in Washington state. What they mean for you
As a new month begins, Washingtonians are welcoming a wave of new legislation.
In Washington state, a bevy of new laws took effect June 11 bringing changes that affect everything from shopping and rental properties to sports betting and traffic stops.
More new state laws go into effect on Wednesday, July 1, including the state’s so-called “millionaires tax.”
Here’s what to know:
What is Washington state’s new ‘millionaires tax’?
A controversial new law targeting Washington state’s wealthiest taxpayers goes into effect on Wednesday, July 1.
Senate Bill 6346 imposes a 9.9% levy on Washington residents with an annual household income of more than $1 million, starting in 2028.
The income tax, which affects 0.5% of households, would begin generating revenue in 2029, McClatchy Media previously reported.
It’s expected to raise at least $3 billion in tax revenue each year, according to state officials.
SB 6346 specifically taxes Washington state residents who make more than $1 million in income in a single year — not people whose net worth meets or exceeds $1 million due to the value of their home and other factors.
Tax breaks are ending for data centers
Data centers in Washington state lose certain tax breaks under a new law taking effect Wednesday, July 1.
Senate Bill 6231 ends retail sales and use tax exemptions for data centers seeking to replace or refurbish server equipment.
Now data centers must pay Washington state’s 6.5% sales tax on the hardware and labor required to replace, fix or upgrade existing computer equipment and servers.
If a data center is getting built, they are able to apply for a tax break for new hardware and centers.
How is tax money spent?
House Bill 2442, which takes effect Wednesday, gives cities and counties greater fiscal flexibility in how they use local tax revenues to support housing, childcare and public health and other needs.
For instance, “Communities can now use affordable housing sales tax revenue for rental assistance, rehab work on existing units and ongoing operations and maintenance,” Southwest Washington Accountable Community of Health said on its website.
Beginning in 2027, HB 2442 authorizes counties and cities to adopt a 0.01% local sales tax to fund services for children and families, including perinatal support, after-school programs, workforce development and transportation for facilities receiving services.
How are estate taxes changing in Washington state?
A new law taking effect Wednesday rolls back a recent increase in estate tax rates.
In July 2025, the top tax rate rose from 20% to 35% for estates valued at $9 million or higher after accounting for a $3 million exclusion.
Senate Bill 6347 restores the structure that was previously in place, again capping rates at 20%.
Pensions increase for retired teachers
Retired teachers in Washington state will start receiving a little extra to cover living expenses, under Senate Bill 5862.
The law, which takes effect Wednesday, authorizes a one-time 3% cost-of-living adjustment for certain retired public employees.
The increase is capped at $110 a month.