Preliminary election results show Washington state residents opposed Initiative 645, which would have repealed the new tax on high incomes. Fifty-eight percent of voters opposed the initiative; the result was especially decisive in King County, where 66.5% voted against repeal. Counting is ongoing, with hundreds of thousands of ballots still to be processed in the coming days.
If the result holds, the state could give up its long-standing status as one of the few in the U.S. without an income tax. Washington has traditionally relied on sales and business taxes. The law, signed by Gov. Bob Ferguson on March 30, imposes a 9.9% tax on the portion of a household’s annual income above $1 million. For example, on income of $1.5 million, $500,000 would be taxable, resulting in a tax bill of about $49,500. Payments will begin to be collected in 2029 on income earned in 2028; around 25,000 residents will be required to pay the tax.
State officials expect the tax to bring in $3–4 billion a year, with most of the revenue going toward covering expenses as the state faces a serious budget deficit. Supporters of the repeal initiative, including Republicans and business representatives, warned that the tax would make the state less attractive to companies and affluent residents. They also worried that the $1 million threshold could be lowered over time.
Opponents of repeal, including Democrats and labor unions, see the tax as a step toward a fairer system. Unlike a sales tax, which is added to the price of purchases and takes up a larger share of low-income families’ budgets, the new levy would affect mostly the wealthiest taxpayers. Families with modest earnings typically spend a significant portion of their income on everyday goods, making them more vulnerable to consumption taxes.
Even if the election result is confirmed, the tax’s fate may be decided in court: a lawsuit challenging its constitutionality was filed in April, and proceedings were effectively postponed until after the election. The dispute centers on a 1933 Washington State Supreme Court ruling. The court held that income is property and therefore must be taxed at a uniform rate no higher than the limit set by the state constitution. This created an obstacle to introducing a progressive income tax without amending the state constitution. The final decision will likely fall to the court’s newly constituted bench, though lawyers say the outcome is difficult to predict.
Based on: WA voters upholding ‘millionaires tax’ in Tuesday vote