All Roll Calls
Yes: 3,419 • No: 3,819
Sponsored By: Jamie Pedersen (Democratic)
Signed by Governor
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39 provisions identified: 18 benefits, 12 costs, 9 mixed.
Starting with tax year 2028, individuals can claim a credit for qualifying business and occupation or public utility tax payments. The same income must be included in both taxes. The credit cannot exceed the new income tax due, and unused credit cannot be refunded or carried forward. Taxes for 2028 are due in 2029.
Taxpayers can deduct 90% of wagering losses allocated to Washington for the year. The deduction cannot exceed Washington wagering income included in the tax base. Nonresidents' deductions are limited to losses connected with Washington sources. Losses cannot carry forward or backward.
Taxpayers can deduct income from U.S. government obligations when federal law bars Washington from taxing it. Related expenses already deducted federally reduce the state deduction. These expenses include amortizable bond premiums.
Starting with tax year 2028, individuals can claim a credit for Washington capital gains tax imposed for that same year. The credit cannot exceed the new income tax otherwise due. Unused credit cannot be refunded or carried to another year. Taxes for 2028 are due in 2029.
The law provides a $1 million standard deduction from Washington base income. Spouses and registered domestic partners share one deduction, even when filing separately. Anyone who is not a full-year resident gets a prorated deduction: Washington base income divided by all-source federal adjusted gross income, capped at 100%. Inflation adjustments start in October 2029 and repeat every odd-numbered October, rounded to the nearest $1,000. The deduction cannot fall, and adjustments apply to taxes due the next calendar year.
Washington residents can claim credit for qualifying income taxes paid to another state or its local governments on income counted here. Each jurisdiction's credit has a proportional Washington-tax limit and cannot exceed Washington tax otherwise due. Unused credit is not refundable and cannot carry forward. Washington can also make agreements with other states to exempt income from personal services on a reciprocal basis.
Taxpayers can deduct qualifying deposits to a federal vessel capital construction fund from Washington base income. The fund must fall under federal tax section 7518. The deposit must also have reduced federal taxable income for the same year.
The business and occupation tax credit cap rises from $55 to $125 per reporting-period month for most businesses. The higher cap rises from $160 to $375 per month when at least 50% of taxable amounts fall under RCW 82.04.255, 82.04.290(2)(a), and 82.04.285. Actual credits remain limited by the legal calculation based on tax otherwise due. The Department of Revenue can waive return filing when annual chapter 82.04 business amounts are below $250,000, up from $125,000. Businesses must also have chapter 82.16 income below $24,000 and no requirement to collect or pay another department-administered tax or fee.
Washington-licensed cannabis businesses can deduct expenses that federal tax law blocks under section 280E. The expenses must relate to their licensed commercial cannabis activities. The deduction lowers Washington base income.
The Washington charitable deduction is capped at $100,000 per individual. Spouses and domestic partners share one $100,000 cap, even when filing separately. Gifts must be claimed under federal charitable deduction rules and go to an organization meeting Washington's qualification rules.
Beginning January 1, 2028, Washington taxes positive Washington taxable income at 9.90%. The tax applies to households with federal adjusted gross income of at least $1 million. The law makes an exception to Washington's personal income tax ban. That exception requires a household standard deduction of at least $1 million.
Nonresident professional team members earning more than $1 million annually generally allocate compensation using Washington duty days divided by total duty days. The rule also covers other people rendering services to a professional athletic team. The Department can adopt alternative allocation methods by rule.
Beginning January 1, 2028, pass-through businesses can elect a 9.90% entity tax; the annual election is irrevocable and due by the Department's deadline, no later than June 15. Businesses identify participating owners and count resident owners' full income shares and nonresidents' Washington-source shares. Owners use federal Schedule K-1 shares for related income adjustments and credits, and add back entity tax expenses deducted federally. Participating owners receive their share of entity-paid tax as a credit, capped at their tax due, with no refund or carryover; residents' related credits reduce it. Entity estimated payments follow individual rules and are not required before July 1, 2029.
The new tax excludes income from rights secured by treaty, executive order, or an act of Congress. Members of federally recognized tribes also exclude qualifying work and activity income earned in their own tribe's Indian country. Qualifying income directly from specified trust lands, trust funds, or allotted and restricted Indian lands is also exempt.
Beginning July 1, 2029, the state treasurer deposits 5% of the previous fiscal year's new tax revenue into Fair Start for Kids. The deposit repeats every July 1 and supports child care and early learning. This funding rule does not set a family's benefit amount or eligibility.
The state deposits collections from the new tax, including interest and penalties, into its general fund. Revenue supports sales and use tax relief, the Working Families' Tax Credit, and business and occupation tax relief. It also supports K–12 schools, health care, human services, and higher education. This funding rule does not promise a set payment or service amount to any household.
Beginning July 1, 2029, individuals must make estimated payments when federal law requires them and annualized Washington estimated tax reaches $5,000. Federal rules set payment periods and deadlines. A 5% penalty applies to underpaid tax when payments fall below both 90% of current-return tax and 100% of most-recent-return tax. For an electing pass-through business, this penalty applies to the entity's estimated payments instead of the individual's.
Washington income tax refunds can be collected for past-due child support. Once collection action starts against a refund, the Department cannot let the taxpayer apply it to future taxes.
Covered Washington pensions and retirement benefits are not exempt from the new income tax through their retirement-system protections. Whether a benefit is taxable depends on the new tax's rules. Protections for covered federal pensions and employee benefit plan assets do not block collection of this tax. Other stated tax and collection protections remain subject to exceptions such as child support and divorce-related orders.
Taxpayers must add back taxes on or measured by net income that reduced federal adjusted gross income. They must also add back federally deducted taxes when a business and occupation or public utility tax credit covers those amounts. These adjustments increase Washington base income.
Knowingly trying to evade the new Washington tax or its payment is a class C felony. Knowingly failing to pay, file a required return, or provide required information is a gross misdemeanor.
From January 1, 2026, through December 31, 2029, a 0.5% surcharge applies to annual Washington taxable income above $250 million. Exclusions cover specified tax classifications, manufacturing and related sales, exempt retail sales, wholesale food, fuel transactions, and health care activities. Farmers, eligible beekeepers, certain other taxpayers, and income covered by the specified overlapping business-tax credit are also excluded.
Taxpayers must add back federally deducted carryovers from tax years ending before January 1, 2028. Other federally deducted net operating loss carryovers generally must also be added back. Taxpayers can deduct 80% of qualifying Washington-apportioned losses from a prior tax year after January 1, 2028. That deduction does not apply to carryovers covered by the pre-2028 rule.
Spouses who file a joint federal return must file a joint Washington return. Registered domestic partners can file jointly despite separate federal returns; other separate federal filers generally file separately. Spouses and registered partners share tax thresholds, caps, deductions, and credits. Each joint filer is generally responsible for the entire tax debt, subject to applicable liability relief. Separate Washington returns divide community income and related tax items under community-property rules.
For the new income tax, part-year residents count all adjusted gross income earned during their Washington residency. During the rest of the year, only Washington-source adjusted gross income counts. Income from a pass-through business is split using residency days during the business's tax year.
Washington subtracts federally included long-term capital gains and adds back long-term capital losses. People owing Washington capital gains tax add back covered Washington gains plus the deduction under that tax; exempt sales are excluded. Federally tax-exempt bond income generally counts, except interest from Washington and its local governments. Residents also count otherwise uncounted income from federally nongrantor trusts funded with incomplete gifts.
Late Washington returns and required federal copies trigger a penalty of 5% of unpaid tax per full month, capped at 25%. The Department must waive it for qualifying events beyond the taxpayer's control or the stated five-year timely-filing record without enforcement contact. Final federal changes affecting Washington income or tax require an amended Washington return within 90 days. Starting day 91, late amendments cost 5% of additional tax per month or partial month, capped at 25%.
Residents count all income; nonresidents generally count Washington-source work, business, property, and wagering income, with Washington-connected deductions and losses. Work income generally splits by workdays, while business income generally splits by receipts under the state's sourcing rules. Nonresidents serving five or fewer Washington days annually generally avoid allocation, except professional athletes, student athletes, and entertainers. Separate exclusions cover specified military pay and qualifying event speakers. For taxpayers with offices here and elsewhere, the Department can reasonably estimate income or agree on an estimate.
These rules cover nonresident college athletes enrolled in higher education and eligible for varsity intercollegiate sports. Their commercial name, image, or likeness income counts as Washington income when related publicity services mainly occur in Washington. Payments representing a share of school athletic revenue are split using duty days.
The new income tax does not reach income, payments, benefits, or services already protected by federal or state law. The law also says the tax chapter is not intended to impose obligations on federally recognized tribes or their subdivisions. That protection also covers entities with tribal government headquarters in Washington.
Beginning January 1, 2029, Washington sales and use taxes no longer apply to qualifying diapers. This covers absorbent garments for people who cannot, or have trouble, controlling bladder or bowel movements.
Beginning January 1, 2029, Washington sales and use taxes no longer apply to covered grooming and hygiene products. These include soaps, cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens. Hygiene products qualify whether or not they count as over-the-counter drugs. Over-the-counter drugs are also tax-free when their labels have a drug facts panel or list active ingredients.
Beginning January 1, 2029, digital-goods and automated-service definitions exclude travel-agent services, real-time live presentations, and qualifying human-effort services. The human effort must begin after the customer requests the service. Excluded data processing must be mainly automated, serve an organization, and extract or convert information mainly from customer-supplied data. Related retail-sale rules also change for human-effort services, live interactive presentations, and data processing sold within affiliated business groups. Advertising sold within those groups remains excluded; exclusion from a digital category alone does not establish a sales-tax exemption.
Beginning July 1, 2026, covered service purchases by public libraries, library districts, and library service centers are sales- and use-tax exempt. The exemption also covers K–12 schools, school districts, and educational service districts. Covered services include information technology, custom website development, investigation, security, armored-car services, temporary staffing, and live presentations. Custom software and changes to prewritten software also qualify. Sellers must obtain and keep the state's required purchaser exemption certificate.
Washington excludes qualifying hospital staffing from the taxable temporary-staffing category. The staff must support hospital-based clinical providers fulfilling hospital contracts for professional services. The arrangement must supplement hospital staffing for a limited period.
The refund provision in section 901 takes effect January 1, 2029. Refunds under that section cannot cover any period before January 1, 2028. The provided provision does not identify the refund program or who qualifies.
Washington applies retail sales tax to live presentations where participants can exchange information with the presenter in real time. In-person, on-site before- and after-school care provided by elementary schools is excluded. Tax also applies to musical, dramatic, comedic, and similar performances, including related instruction. One-on-one tutoring and consulting are covered, as are music lessons with any number of students.
Payors doing business in Washington must report taxable income paid to professional team members reasonably expected to owe this tax. Reports must include compensation, taxpayer identification numbers, and duty days. Reports are due April 15 after the reporting year, unless the Department of Revenue sets another filing time.
People owing this tax must generally file electronically by their federal return deadline and provide federal returns and supporting documents. Payment is due then even with a filing extension; people owing no tax need not file under this rule. The Department of Revenue can waive electronic filing or payment for good cause. Taxpayers must follow their federal accounting method and changes, using cash accounting when no regular method clearly reflects income. For covered annual assessments, refunds, and credits, interest starts April 30 after the reporting period; unpaid assessments keep accruing interest.
Jamie Pedersen
Democratic • Senate
Annette Cleveland
Democratic • Senate
Bob Hasegawa
Democratic • Senate
Claire Wilson
Democratic • Senate
Claudia Kauffman
Democratic • Senate
Derek Stanford
Democratic • Senate
Emily Alvarado
Democratic • Senate
Javier Valdez
Democratic • Senate
Jesse Salomon
Democratic • Senate
Jessica Bateman
Democratic • Senate
John Lovick
Democratic • Senate
June Robinson
Democratic • Senate
Lisa Wellman
Democratic • Senate
Liz Lovelett
Democratic • Senate
Manka Dhingra
Democratic • Senate
Marcus Riccelli
Democratic • Senate
Mike Chapman
Democratic • Senate
Noel Frame
Democratic • Senate
Rebecca Saldaña
Democratic • Senate
Sharon Shewmake
Democratic • Senate
Steve Conway
Democratic • Senate
T'wina Nobles
Democratic • Senate
Tina Orwall
Democratic • Senate
Vandana Slatter
Democratic • Senate
Victoria Hunt
Democratic • Senate
Yasmin Trudeau
Democratic • Senate
All Roll Calls
Yes: 3,419 • No: 3,819
Senate vote • 3/11/2026
Final Passage As Amended by the House
Yes: 27 • No: 21 • Other: 1
Senate vote • 3/11/2026
Concur in House amendment(s)
Yes: 27 • No: 21 • Other: 1
House vote • 3/9/2026
2543 Marshall Pg 12 Ln 20
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2573 Dufault Pg 12 Ln 20
Yes: 45 • No: 51 • Other: 2
House vote • 3/9/2026
2596 Walen Pg 12 Ln 24
Yes: 47 • No: 49 • Other: 2
House vote • 3/9/2026
2604 Reeves Pg 12 Ln 24
Yes: 47 • No: 49 • Other: 2
House vote • 3/9/2026
2582 Corry Pg 69 Ln 19
Yes: 47 • No: 49 • Other: 1
House vote • 3/9/2026
2580 Chase Pg 69 Ln 20
Yes: 44 • No: 51 • Other: 3
House vote • 3/9/2026
2564 Stuebe Pg 69 Ln 21
Yes: 43 • No: 52 • Other: 3
House vote • 3/9/2026
2608 Reeves Pg 69 Ln 21
Yes: 46 • No: 49 • Other: 3
House vote • 3/9/2026
2542 Marshall Pg 106 Ln 13
Yes: 43 • No: 50 • Other: 5
House vote • 3/9/2026
2562 Rude Pg 6 Ln 8
Yes: 45 • No: 51 • Other: 2
House vote • 3/9/2026
2597 Walen Pg 8 Ln 3
Yes: 47 • No: 49 • Other: 2
House vote • 3/9/2026
2556 Valdez Pg 64 Ln 36
Yes: 41 • No: 56 • Other: 1
House vote • 3/9/2026
2572 Engell Pg 69 Ln 5
Yes: 93 • No: 1 • Other: 1
House vote • 3/9/2026
2581 McClintock Pg 69 Ln 20
Yes: 42 • No: 52 • Other: 4
House vote • 3/9/2026
2548 Walsh Pg 107 Ln 31
Yes: 40 • No: 53 • Other: 5
House vote • 3/9/2026
Postpone Indefinitely
Yes: 38 • No: 58 • Other: 2
House vote • 3/9/2026
2578 Walsh Pg 1 Ln 3
Yes: 40 • No: 56 • Other: 2
House vote • 3/9/2026
2583 Dent Pg 5 Ln 15
Yes: 43 • No: 50 • Other: 5
House vote • 3/9/2026
2587 Stokesbary Pg 5 Ln 15
Yes: 40 • No: 53 • Other: 5
House vote • 3/9/2026
2555 Klicker Pg 5 Ln 17
Yes: 43 • No: 51 • Other: 4
House vote • 3/9/2026
2574 Barkis Pg 5 Ln 18
Yes: 41 • No: 53 • Other: 4
House vote • 3/9/2026
2546 Couture Pg 5 Ln 26
Yes: 38 • No: 56 • Other: 4
House vote • 3/9/2026
2547 Ley Pg 5 Ln 26
Yes: 38 • No: 56 • Other: 4
House vote • 3/9/2026
2565 Penner Pg 5 Ln 29
Yes: 39 • No: 55 • Other: 4
House vote • 3/9/2026
2552 Mendoza Pg 5 Ln 33
Yes: 41 • No: 54 • Other: 3
House vote • 3/9/2026
2576 Marshall Pg 5 Ln 33
Yes: 40 • No: 54 • Other: 4
House vote • 3/9/2026
2612 Reeves Pg 5 Ln 33
Yes: 45 • No: 50 • Other: 3
House vote • 3/9/2026
2613 Reeves Pg 5 Ln 33
Yes: 23 • No: 72 • Other: 3
House vote • 3/9/2026
2614 Reeves Pg 5 Ln 33
Yes: 47 • No: 49 • Other: 2
House vote • 3/9/2026
2558 Jacobsen Pg 7 Ln 3
Yes: 42 • No: 54 • Other: 2
House vote • 3/9/2026
2595 Connors Pg 7 Ln 3
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2588 Jacobsen Pg 8 Ln 1
Yes: 47 • No: 49 • Other: 2
House vote • 3/9/2026
2569 Orcutt Pg 11 Ln 15
Yes: 44 • No: 52 • Other: 1
House vote • 3/9/2026
2571 Abell Pg 11 Ln 15
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2545 Barnard Pg 11 Ln 16
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2612 Reeves Pg 5 Ln 33
Yes: 39 • No: 58 • Other: 1
House vote • 3/9/2026
2561 Keaton Pg 43 Ln 2
Yes: 38 • No: 58 • Other: 2
House vote • 3/9/2026
2579 Abbarno Pg 43 Ln 2
Yes: 42 • No: 54 • Other: 2
House vote • 3/9/2026
2598 Walen Pg 64 Ln 21
Yes: 43 • No: 54 • Other: 1
House vote • 3/9/2026
2541 Jacobsen Pg 107 Ln 4
Yes: 40 • No: 54 • Other: 4
House vote • 3/9/2026
2538 Orcutt Pg 107 Ln 26
Yes: 43 • No: 50 • Other: 5
House vote • 3/9/2026
2551 Ybarra Pg 107 Ln 31
Yes: 37 • No: 56 • Other: 4
House vote • 3/9/2026
2567 Low Pg 107 Ln 31
Yes: 37 • No: 57 • Other: 4
House vote • 3/9/2026
2602 Reeves Pg 13 Ln 20
Yes: 46 • No: 50 • Other: 2
House vote • 3/9/2026
2603 Reeves Pg 13 Ln 20
Yes: 2 • No: 94 • Other: 2
House vote • 3/9/2026
2560 Corry Pg 13 Ln 25
Yes: 45 • No: 51 • Other: 2
House vote • 3/9/2026
2586 Barnard Pg 67 Ln 28
Yes: 45 • No: 50 • Other: 3
House vote • 3/9/2026
2554 Abell Pg 106 Ln 18
Yes: 40 • No: 55 • Other: 3
House vote • 3/9/2026
2577 Steele Pg 107 Ln 31
Yes: 38 • No: 57 • Other: 3
House vote • 3/9/2026
2594 Walen Pg 107 Ln 31
Yes: 46 • No: 49 • Other: 3
House vote • 3/9/2026
2566 Griffey Pg 43 Ln 3
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2584 Walsh Pg 107 Ln 26
Yes: 41 • No: 55 • Other: 2
House vote • 3/9/2026
Final Passage as Amended by the House
Yes: 51 • No: 46 • Other: 1
House vote • 3/9/2026
2589 Burnett Pg 26 Ln 36
Yes: 38 • No: 59 • Other: 1
House vote • 3/9/2026
2590 Penner Pg 12 Ln 19
Yes: 42 • No: 54 • Other: 2
House vote • 3/9/2026
2563 Dye Pg 107 Ln 31
Yes: 93 • No: 0 • Other: 5
House vote • 3/9/2026
2550 Ley Pg 5 Ln 15
Yes: 38 • No: 57 • Other: 3
House vote • 3/9/2026
2540 Schmidt Pg 12 Ln 28
Yes: 40 • No: 56 • Other: 2
House vote • 3/9/2026
2575 Connors Pg 12 Ln 18
Yes: 43 • No: 53 • Other: 2
House vote • 3/9/2026
2549 Manjarrez Pg 3 Ln 12
Yes: 44 • No: 52 • Other: 2
House vote • 3/9/2026
2591 Waters Pg 3 Ln 12
Yes: 42 • No: 53 • Other: 3
House vote • 3/9/2026
2539 Berg Pg 3 Ln 21
Yes: 94 • No: 1 • Other: 3
House vote • 3/9/2026
2585 Manjarrez Pg 4 Ln 22
Yes: 40 • No: 55 • Other: 3
House vote • 3/9/2026
2544 Graham Pg 43 Ln 2
Yes: 39 • No: 58 • Other: 1
House vote • 3/9/2026
2615 Rule Pg 106 Ln 33
Yes: 57 • No: 36 • Other: 4
House vote • 3/9/2026
2568 Orcutt Pg 2 Ln 6
Yes: 40 • No: 56 • Other: 2
House vote • 3/9/2026
2600 Reeves Pg 3 Ln 9
Yes: 59 • No: 37 • Other: 2
House vote • 3/9/2026
2609 Reeves Pg 69 Ln 21
Yes: 46 • No: 49 • Other: 3
House vote • 3/9/2026
2610 Reeves Pg 69 Ln 21
Yes: 44 • No: 51 • Other: 3
House vote • 3/9/2026
2611 Reeves Pg 69 Ln 21
Yes: 46 • No: 49 • Other: 3
House vote • 3/9/2026
2592 Couture Pg 69 Ln 24
Yes: 44 • No: 49 • Other: 5
House vote • 3/9/2026
2537 Leavitt Pg 103 Ln 30
Yes: 94 • No: 0 • Other: 4
House vote • 3/9/2026
2601 Reeves Pg 106 Ln 22
Yes: 41 • No: 53 • Other: 4
Senate vote • 2/16/2026
693 Warnick Pg 10 Ln 25
Yes: 20 • No: 29
Senate vote • 2/16/2026
3rd Reading & Final Passage
Yes: 27 • No: 22
Senate vote • 2/16/2026
696 Gildon Pg 66 Ln 6
Yes: 21 • No: 28
Senate vote • 2/16/2026
695 MacEwen Pg 66 Ln 1
Yes: 21 • No: 28
Effective date 6/11/2026*.
Chapter 238, 2026 Laws.
Governor signed.
Delivered to Governor.
Speaker signed.
President signed.
Passed final passage; yeas, 27; nays, 21; absent, 0; excused, 1.
Senate concurred in House amendments.
Third reading, passed; yeas, 51; nays, 46; absent, 0; excused, 1.
Rules suspended. Placed on Third Reading.
Floor amendment(s) adopted.
Committee amendment not adopted.
Rules Committee relieved of further consideration. Placed on second reading.
Referred to Rules 2 Review.
FIN - Executive action taken by committee.
Minority; without recommendation.
Minority; do not pass.
FIN - Majority; do pass with amendment(s).
First reading, referred to Finance.
Third reading, passed; yeas, 27; nays, 22; absent, 0; excused, 0.
Rules suspended. Placed on Third Reading.
Floor amendment(s) adopted.
1st substitute bill substituted.
Placed on second reading by Rules Committee.
Minority; without recommendation.
Session Law
4/1/2026
Bill as Passed Legislature
3/13/2026
Engrossed Substitute
2/16/2026
Original Bill
2/12/2026
Substitute Bill
2/10/2026
HB 1960, Encouraging renewable energy in Washington through tax policy and investment in local communities.
HB 2034, Concerning termination and restatement of plan 1 of the law enforcement officers' and firefighters' retirement system.
HB 2689, Concerning the working connections child care program.
HB 2681, Modifying cannabis producer, processor, and retailer license fees.
SB 6228, Removing a tax exemption for the warehousing and reselling of prescription drugs.
HB 2487, Concerning taxes imposed on insurers operating within the state.