WA State Capital Gains Tax

If you’re a Washington resident, you may have heard about a proposed capital gains tax bill for the state.  Currently, Washington does not have a capital gains tax.

The Washington state House of Representatives approved a new capital gains tax bill that may be passed by the Washington State Senate.  As written, the new bill would affect Washingtonians as follows: you will still be paying the federal government capital gains taxes but will now have an added 7% Washington state specific tax on capital gains over $250,000 (only capital gains, not wages over $250,000). 

The following are excluded from this proposed capital gains tax: real estate land and structures, assets in a retirement account, livestock, machinery and equipment used in a trade or business, and timber, among others. 

The next steps on this bill are a possible passing by the state Senate and governor, then a possible court challenge. 

The above information surrounding the proposed capital gains tax has not been passed yet, and is only to provide you with information and education about this proposed tax law.

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