FILE - Washington Gov. Bob Ferguson holds up the state's first income tax, also known as the "millionaires tax," after signing it into law on March 30, 2026, in Olympia.
Sarah Mizes-Tan/KNKX & KUOW
Washington voters appear poised to keep what Democrats call the “millionaires tax” — the first time they’ve voted in favor of an income tax since 1932.
A measure to repeal an income tax on high earners, which Democrats passed earlier this year, was behind as of election night, with the “no” vote, upholding the tax, leading. Results will be updated as votes are tallied.
As of 9 p.m. on election night, with 33 of 39 counties reporting, 58.1% voted no, in favor of keeping the tax.
The result was not a surprise from a fundraising standpoint. The ”no” campaign to save the tax, funded by powerful labor unions, outraised the ”yes” campaign to overturn it by more than three to one. The “no” campaign even raked in more than double the cash of Let’s Go Washington, hedge fund manager Brian Heywood’s political action committee funding this repeal and two other conservative-backed measures on the ballot.
And while the election night results were predictable, the vote itself represents a sea change for Washington residents.
The state’s electorate has rejected income and corporate taxes 10 times in the last century. In 1932, a wide majority voted “yes” to an income tax, but that was later struck down by the state Supreme Court. Until earlier this year, when Democrats in the state Legislature passed their tax on households making more than $1 million dollars annually, Washington was the only true-blue Democratic-led state in the nation with no income tax.
But another challenge may be on the horizon for Washington’s income tax.
A lawsuit making its way through the courts could ultimately decide the measure’s fate. The suit is expected to make it before the state Supreme Court in the next year or so — and the precedent since 1933 has been that income taxes aren’t allowed by the state Constitution. Five of the court’s nine seats are being chosen by voters Tuesday night, but none of the candidates have truly been explicit about whether they would allow an income tax.
Scott Greenstone is a reporter with KUOW. This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.
It is part of OPB’s broader effort to ensure that everyone in our region has access to quality journalism that informs, entertains and enriches their lives. To learn more, visit our journalism partnerships page.
