MYNORTHWEST POLITICS

Small group protests WA state taxes outside capitol in Olympia

Jan 5, 2026, 9:17 AM | Updated: 10:24 am

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A photo of the Washington State Capitol building in Olympia. (Photo: Julia Dallas, MyNorthwest)

(Photo: Julia Dallas, MyNorthwest)

A small gathering protested state taxes over the weekend outside the state Capitol building in Olympia.

The group called it a “tax protest rally.” Washington Representative Jim Walsh was in attendance.

“This was a grassroots event. NOT sponsored by any Party, PAC or other political organization,” Walsh wrote in a social media post. “ALL taxes are regressive. The best way to give working people tax relief and restore affordability in WA is to reduce ALL state taxes.”

One man at the rally spoke to the crowd via a megaphone, stating that he and his family are moving out of the state due to being “taxed out.” KOMO News captured video of his message to the crowd.

More taxes coming to WA in 2026

According to The Washington State Standard, Senate Bill 5794 is expected to raise approximately $50 million for the current two-year state budget by getting rid of certain tax breaks — tax credits for home energy assistance, tax breaks for businesses that hire employees who provide services to people outside the U.S., and tax deductions for firms that provide testing for public safety employees.

In December, Gov. Bob Ferguson said he wants to see such a proposal for a “millionaires tax” — a tax on incomes over $1 million — next month and would work with Democrats to make sure it passes.

Additionally, nicotine purchases and coin and gold sales will be more costly in 2026 due to new taxes. Several vehicle-related taxes were raised, including truck and passenger vehicle weight fees, rental car taxes, a vehicle sales tax, and a luxury car levy application fee.

According to The Tax Foundation’s State Competitiveness Index, Washington ranks No. 45 for having the most competitive tax structure. States are ranked based on income, sales, excise, property, capital gains, corporate, payroll, estate, and VAT consumption taxes to determine which states are the most taxpayer-friendly for both individuals and businesses.

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Small group protests WA state taxes outside capitol in Olympia