(The Center Square) – As of Tuesday, a slew of new and increased charges, taxes and fees went into effect in Washington state.
This year’s legislative session saw lawmakers approve a tax increase package projected to generate approximately $9.4 billion in revenue over the next four years. This package, consisting of five tax bills, was passed by the Legislature and signed into law by Gov. Bob Ferguson to support the state’s next budget and address a projected shortfall.
The Tax Foundation noted Washington’s implementation of a new estate tax rate schedule with a top rate of 35%, which applies to estates exceeding $9 million in value. It is the highest state-level estate tax rate in the nation.
The first $3 million of an estate’s value will be exempt from the tax, but estates exceeding that amount will face progressively higher tax rates, up to the maximum of 35%.
“This is dramatically higher than Hawaii’s 20 percent top rate, with which Washington was previously tied, and more than double the next-highest top rate of 16 percent, found in multiple states,” according to the Tax Foundation.
As reported by The Center Square, on July 1, the state’s gas tax increased from 49.4 cents per gallon to 55.4 cents.
According to AAA, the average price for a gallon of regular unleaded gasoline in Washington on Thursday was just over $4.41. The national average is just over $3.16.
Families that hunt and fish to put food on the table saw the price of those licenses increase on July 1 – a 38% “inflationary adjustment” – raising the average cost by more than $16.
House Bill 2081 will hike business and occupation taxes in Washington starting Oct. 1. The rate for businesses with a gross income exceeding $5 million will increase from 1.75% to 2.1%.
Specified financial institutions will see a B&O tax increase from 1.2% to 1.5%. A “specified financial institution” is defined as a financial institution that is part of a consolidated financial institution group. This group must have reported an annual net income of at least $1 billion on its consolidated financial statement for the previous calendar year.
Starting Jan. 1, 2026, an advanced computing surcharge for select advanced computing businesses with worldwide gross revenue over $25 billion will increase from 1.22% to 7.5%. A select advanced computing business in Washington is part of an affiliated group of businesses. At least one group member is involved in “advanced computing.” This includes designing software or hardware, cloud computing, or operating online platforms like search engines or social networks.
Also starting Jan. 1, 2026, a new 0.5% surcharge for high-grossing businesses will apply to Washington taxpayers with a taxable income exceeding $250 million.
B&O tax rates for standard manufacturing, extracting, and retail classifications increase to 0.5% starting Jan. 1, 2026.
The Tax Foundation notes other tax and fee increases to take effect later this month.
House Bill 1498 levies an additional $100 fee on marriage licenses to fund a new domestic violence co-responder account.
Senate Bill 5786 increases various liquor license and permit costs by 50%.
Senate Bill 5284 creates a new Extended Producer Responsibility program called the Solid Waste Producer Responsibility program.
All three bills take effect July 27, though most of the EPR program’s implementation dates are set for 2026 and beyond.
