WA millionaire income tax: Will Senate Bill 6346 pass before the 2026 session ends?

Eight days remain in the 2026 Washington state legislative session in Olympia, and Senate Bill 6346, the proposed millionaire income tax, still hasn’t reached the House floor.

Andrew Villeneuve of the Northwest Progressive Institute told “Seattle’s Morning News” on KIRO Newsradio that the situation remains uncertain.

“We’re hearing that it is still touch-and-go,” Villeneuve said. “We don’t really know whether there is going to be a successful vote in the House of Representatives yet. Anything can happen. It’s possible this could be pushed to the next session, but it’s also possible they can get it done.”

Villeneuve pointed to the structural challenge facing lawmakers.

“This is a very short session. It’s a 60-day limitation by the Constitution on the number of consecutive days the legislature can be meeting in Olympia,” Villeneuve said. “They just don’t have a lot of time to put anything together. It’s a very difficult circumstance to squeeze it all into that short of a timeframe.”

Gov. Bob Ferguson told political donors and supporters in an email that passing Washington’s millionaire income tax could mean “coming back next year to finish the bill in a longer session,” according to reporting by Jerry Cornfield of The Washington State Standard. Ferguson told the Standard he’s “hopeful” a deal can be reached before the 2026 Washington state legislative session ends March 12.

What Senate Bill 6346 would do for WA

SB 6346 would impose a 9.9% income tax on Washington state households earning more than $1 million a year. Supporters said it would generate roughly $3 billion annually to help address the state’s budget shortfall. The bill cleared the Senate but ran into trouble in the House, where a committee last week stripped out a key tax break for large corporations.

A group of Washington state AI and tech sector leaders followed with a letter urging Ferguson to pause the income tax push and raise the capital gains tax instead. The Wall Street Journal editorial board also weighed in, arguing Washington state Democrats were putting their economy at risk.

Bob Ferguson and Washington Democrats clash over income tax details

Since embracing the millionaires’ tax in December, Ferguson has pushed for a majority of the revenue to go toward tax relief for working families and small businesses in Washington state. Senate Majority Leader Jamie Pedersen, D-Seattle, told Cornfield that lawmakers are aiming for “25 to 40%.”

Pedersen said he’s not worried. “He’s been very consistently saying what he needs to sign the bill. It’s just a negotiation,” he said.

Rep. April Berg, D-Mill Creek, chair of the House Finance Committee, said Senate Bill 6346 has a “strong path forward.” “I am confident we will have a bill in front of the governor to sign by the end of session,” Berg said.

Washington state Republicans call SB 6346 unconstitutional

Carleen Johnson of The Center Square reported that Washington State Republican Party Chair Jim Walsh, who also serves in the House, called Senate Bill 6346 a “dead fish” without a constitutional amendment backing it up.

“Language that gave a preferable B&O tax status and some other preferable tax statuses to certain industry groups, primarily big tech, were stripped out,” Walsh told The Center Square. “Those groups who might have been neutral or even slightly positive on the state income tax scheme now are against it.”

Senate Minority Leader John Braun told Johnson he met with Ferguson on Tuesday, but said the governor gave no indication he was backing away from the bill.

House Minority Leader Drew Stokesbary, R-Auburn, said he encouraged Ferguson to apply more pressure on his own party. “I told him that my perception is the Democratic leadership isn’t taking his ideas quite seriously, but some moderate Democrats are, and he has an opportunity to step up and provide leadership,” Stokesbary said.

Collections from Washington’s millionaire income tax, if SB 6346 passes, wouldn’t begin until 2029. The 2026 Washington state legislative session ends on March 12.

Charlie Harger is the host of “Seattle’s Morning News” on KIRO Newsradio. You can read more of his stories and commentaries here. Follow Charlie on X and email him here. 

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