AGC supported ESSB 6347, which rolls back the estate tax rate increase enacted by the Legislature in 2025. Lawmakers acted in part due to concerns that the significant increase in estate tax rates was encouraging some high-net-worth residents to leave the state. This bill passed the Legislature with bipartisan support.
A law that took effect July 1, 2025, increased the top estate tax rate to 35% for estates valued over $9 million. ESSB 6347 rolled those rates back to the levels that were in place before the July 1, 2025, change. These prior rates will apply until July 1, 2026, when the updated rate structure is scheduled to take effect again.
Washington Taxable Estate Value* | Rate for Estates for Decedents Dying before July 1, 2025 | Rate for Estates for Decedents Dying on or after July 1, 2025 | Rate for Estates for Decedents Dying on or after July 1, 2026 |
$0 to $1,000,000 | 10% | 10% | 10% |
$1,000,000 to $2,000,000 | 14% | 15% | 14% |
$2,000,000 to $3,000,000 | 15% | 17% | 15% |
$3,000,000 to $4,000,000 | 16% | 19% | 16% |
$4,000,000 to $6,000,000 | 18% | 23% | 18% |
$6,000,000 to $7,000,000 | 19% | 26% | 19% |
$7,000,000 to $9,000,000 | 19.5% | 30% | 19.5% |
$9,000,000 and up | 20% | 35% | 20% |
*after the exclusion amount
The legislation also changes the inflation adjustment used for the estate tax exclusion. Instead of using the Seattle Consumer Price Index (CPI), the adjustment will now be based on the Seattle–Tacoma–Bremerton CPI.
For estates of decedents dying on or after January 1, 2026, but before July 1, 2026, the estate tax exclusion amount is $3,076,000.
For estates of decedents dying on or after July 1, 2026, the exclusion amount will be $3,000,000.
For more information, contact AGC’s Michele Willms.