Washington Estate Tax.
Washington does not have an inheritance tax. However, Washington does have an estate tax. In general terms, an inheritance tax is a tax on the beneficiaries of an estate, whereas an estate tax is a tax on the decedent's estate. If you are a person living in Washington who inherits property or money, you do not owe Washington taxes on your inheritance. The estate tax is a tax on the right to transfer property at the time of death. A person residing in Washington or a nonresident who owns property in Washington may owe an estate tax depending on the value of their estate.
The executor for a decedent's estate is required to file an estate tax return if the gross estate meets the filing threshold for the date of death. The current threshold amount is $3.076 million. If the total gross estate is below the filing threshold, no estate tax return needs to be filed. If the total gross estate is above the filing threshold, an estate tax return must be filed even if no tax would be due. If a Washington return is required to be filed and a federal estate tax return is filed, a copy of the federal return must be included with the Washington estate tax filing.
All assets owned by the decedent on the date of death should be included in the estate. All assets, even if located in another state, should be reported on the estate tax return as part of the gross estate.
Exclusion Amount.
The adjusted taxable estate is the value of the estate after all deductions and adjustments are made. The applicable exclusion amount is an amount deducted from the adjusted taxable estate prior to calculating estate tax due. The exclusion amount is adjusted annually using the Consumer Price Index (CPI) for the Seattle metropolitan area. The current exclusion amount is $3.076 million.
In 2025 the Legislature adjusted the estate tax rate for decedents dying on or after July 1, 2025. The following table summarizes the new rates for a Washington taxable estate:
Washington Taxable Estate Value | Dying on or after January 1, 2014, but prior to July 1, 2025 | Dying on or after July 1, 2025 |
$0 to $1 million | 10 percent | 10 percent |
$1 million to $2 million | 14 percent | 15 percent |
$2 million to $3 million | 15 percent | 17 percent |
$3 million to $4 million | 16 percent | 19 percent |
$4 million to $6 million | 18 percent | 23 percent |
$6 million to $7 million | 19 percent | 26 percent |
$7 million to $9 million | 19.5 percent | 30 percent |
$9 million and up | 20 percent | 35 percent |
Tax Revenues Dedicated to the Education Legacy Trust Account.
The Education Legacy Trust Account (ELTA) is used to fund kindergarten through grade 12 and higher education purposes as well as childcare and early learning programs. The proceeds of the estate tax are deposited into the ELTA.
The exclusion amount for the estate tax is $3 million for the estates of decedents dying on or after July 1, 2026. The inflation adjustment is linked to the CPI for the Seattle-Tacoma-Bremerton area.
The rate increases for the estate tax enacted in 2025 are reduced to previous levels beginning with decedents dying on or after July 1, 2026. The rates are as follows:
Washington Taxable Estate Value | Dying on or after July 1, 2025, but before July 1, 2026 | Dying on or after July 1, 2026 |
$0 to $1 million | 10 percent | 10 percent |
$1 million to $2 million | 15 percent | 14 percent |
$2 million to $3 million | 17 percent | 15 percent |
$3 million to $4 million | 19 percent | 16 percent |
$4 million to $6 million | 23 percent | 18 percent |
$6 million to $7 million | 26 percent | 19 percent |
$7 million to $9 million | 30 percent | 19.5 percent |
$9 million and up | 35 percent | 20 percent |
(In support) Last year's tax rate increased significantly and there are taxpayers that are considering leaving the state as a result. This bill is a straightforward adjustment to restore the prior rate structure.
Family business inheritance issues expose the challenges to having to pay estate tax when there is not the liquidity to pay the excessive tax. Very few businesses can pay a graduated rate up to 35 percent, and the changes enacted last year will force the sale of a family business.
(Opposed) This bill is a favor to the children of oligarchs. The smaller estates were pulled out of the estate tax by changing the exclusion amount. Right now, there are cuts to education and early learning. This bill takes more money from those programs. The only capital flight risks are those who are disablers of democracy.
According to data, only 35 Washington estates in excess of $10 million have been taxed in the past 10 years. There is one example of a person who moved out of state; however, the person did not move all their assets out of state. Wealthy people have their own social systems and are less likely to move than the poor who are moving out of state for work.
If the Legislature is looking at rolling back the estate tax changes, an amendment should be made to also reduce the exclusion.
(In support) Senator Claudia Kauffman, prime sponsor; and Tim Overland, Nelson Legacy Group LLC.