Five-second answer

Claim we investigated

The millionaires tax would take Washington from no income tax to one of the five highest top state income tax rates.

True. At 9.9%, Washington would tie Oregon for fifth among states, behind California, Hawaii, New York and New Jersey. The Tax Foundation's 2026 table of state rates, the enacted law, and FactHub's calculations from state brackets show where Washington's rate ranks and what high earners would actually pay.

Quote or cite this fact-check

FactHub rates the claim “The millionaires tax would take Washington from no income tax to one of the five highest top state income tax rates” True (high confidence): At 9.9%, Washington would tie Oregon for fifth among states, behind California, Hawaii, New York and New Jersey. Reviewed October 21, 2026. https://facthub.org/n/article/wa-millionaires-tax-top-five-rate/4

One-minute summary

What the evidence establishes

  • Established. From 2028, Washington's 9.9% top rate would tie Oregon's for fifth among the 50 states, behind California (13.3%), Hawaii, New York (10.9%) and New Jersey (10.75%).
  • Established. Washington would not have the highest state income tax rate; four states and the District of Columbia would be higher.
  • Established. Because the first $1 million is untaxed, a married couple with $2 million of wages would pay 4.95% of its income, against 9.70% in Oregon, 10.81% in California and 6.74% in Massachusetts.
  • Context. The Tax Foundation's 18.037% for Seattle adds 8.137 points of payroll taxes, most of them paid by employers, to the 9.9% income tax.
  • Context. Washington already taxes long-term capital gains at up to 9.9%, since the 2025 surcharge on gains over $1 million.
Important context: Washington has no tax on wage income today; its only income-based tax is the capital gains tax, at up to 9.9% on long-term gains. ESSB 6346 would add a 9.9% tax on household income above $1 million from tax year 2028, and Initiative 645 on the November 3, 2026 ballot would repeal it. This article compares the new top rate with other states' top statutory rates and with what high-income households would pay on average. Local income taxes and payroll taxes are outside the ranking.

The evidence

The conclusion rests on the combined record. Expand each item to see its role and limitations.

Independence note: This check uses 4 methods across 4 institutions and 1 country or international grouping.
Evidence map
Method Institution / country Year(s) What it shows Key limitation Primary links
Comparison of top statutory rates from the Tax Foundation's 2026 table with ESSB 6346 Tax Foundation, Washington State Legislature, FactHub United States 2026, 2028 The Tax Foundation's 2026 table says top rates range up 'to 13.3 percent in California'. Ranked by top rate, the states above 9.9% are California (13.3%), Hawaii (11% in 2026; 13% reported from 2027), New York (10.9%) and New Jersey (10.75%); the District of Columbia is also at 10.75% but is not a state. ESSB 6346 sets Washington's rate at 9.9% of Washington taxable income from January 1, 2028, which ties Oregon's top rate. Minnesota (9.85%), Massachusetts (9%) and Vermont (8.75%) follow. Top statutory rates only; they ignore where each top rate starts (Oregon's at $250,000 for couples, New York's 10.9% only above $25 million) and exclude local income taxes, such as New York City's. Hawaii's 13% from 2027 is from news reports, but Washington's rank is the same at Hawaii's 2026 rate of 11%. Tax Foundation Washington State Legislature FactHub
FactHub calculation from each state's 2026 brackets for married couples with wages only FactHub, Tax Foundation, Massachusetts Department of Revenue United States 2026, 2028 Washington taxes 9.9% of income above the household's $1 million deduction, so its average rate is far below its top rate: 3.3% at $1.5 million, 4.95% at $2 million and 7.92% at $5 million. Oregon's average is 9.63% to 9.82% at those incomes, California's 9.98% to 12.30% and Massachusetts's 5.99% to 8.10%. Washington is lowest of the four at every level. Wages only, standard deduction or exemption only, and three illustrative income levels; real households have other income, deductions and credits. California's 1.3% SDI payroll tax on wages and all local taxes are excluded. FactHub
Department of Revenue guidance compared with the Tax Foundation table Washington State Department of Revenue, Tax Foundation United States 2025, 2026 The Department of Revenue says Washington capital gains above $1 million are 'subject to a 7% tax, plus an additional 2.9% tax', a 9.9% top rate since 2025. The Tax Foundation's 2026 table describes the change as 'a new top marginal rate of 9 percent', which understates it. ESSB 6346 extends the same 9.9% top rate to wages and other income. Washington's courts treat the capital gains tax as an excise, not an income tax; it is included here because it taxes the same high-income households. Washington State Department of Revenue Tax Foundation
Breakdown of the Tax Foundation's combined-rate calculation Tax Foundation, FactHub United States 2026, 2028 The Tax Foundation calculated that the tax 'would yield a top rate of 18.037 percent on wage income and restricted stock units (RSUs) vesting in Seattle'. The figure is 9.9% income tax plus 0.58% WA Cares, the 5% Seattle Social Housing Tax and the 2.557% top JumpStart payroll tax; the last two are paid by employers, and the Tax Foundation notes the total is 'split across employer and employee'. No federal tax is included; adding it gives the Tax Foundation's all-in 57.937%. Who ultimately bears an employer payroll tax is an economic question; the Tax Foundation assumes workers do. Tax Foundation FactHub
1. Where 9.9% ranks among state top rates Comparison of top statutory rates from the Tax Foundation's 2026 table with ESSB 6346

The Tax Foundation's 2026 table says top rates range up 'to 13.3 percent in California'. Ranked by top rate, the states above 9.9% are California (13.3%), Hawaii (11% in 2026; 13% reported from 2027), New York (10.9%) and New Jersey (10.75%); the District of Columbia is also at 10.75% but is not a state. ESSB 6346 sets Washington's rate at 9.9% of Washington taxable income from January 1, 2028, which ties Oregon's top rate. Minnesota (9.85%), Massachusetts (9%) and Vermont (8.75%) follow.

Limit: Top statutory rates only; they ignore where each top rate starts (Oregon's at $250,000 for couples, New York's 10.9% only above $25 million) and exclude local income taxes, such as New York City's. Hawaii's 13% from 2027 is from news reports, but Washington's rank is the same at Hawaii's 2026 rate of 11%.

Verify: State Individual Income Tax Rates and Brackets, 2026 ESSB 6346, chapter 238, Laws of 2026 (session law) Top state income tax rates in 2028

2. What high earners would actually pay FactHub calculation from each state's 2026 brackets for married couples with wages only

Washington taxes 9.9% of income above the household's $1 million deduction, so its average rate is far below its top rate: 3.3% at $1.5 million, 4.95% at $2 million and 7.92% at $5 million. Oregon's average is 9.63% to 9.82% at those incomes, California's 9.98% to 12.30% and Massachusetts's 5.99% to 8.10%. Washington is lowest of the four at every level.

Limit: Wages only, standard deduction or exemption only, and three illustrative income levels; real households have other income, deductions and credits. California's 1.3% SDI payroll tax on wages and all local taxes are excluded.

Verify: Effective state income tax rates for married couples, wages only

Washington's effective rate on high earners is lowest of four high-rate statesState income tax as a percent of income for a married couple with $1.5 million, $2 million or $5 million of wages, in Washington (under the 2028 law), Oregon, California and Massachusetts.{"width":960,"height":540,"plot":{"left":90,"top":70,"right":926,"bottom":482},"yDomain":[0,14],"series":[{"name":"Washington","color":"#176b87"},{"name":"Oregon","color":"#b6542c"},{"name":"California","color":"#684b9b"},{"name":"Massachusetts","color":"#2f7d4a"}],"points":[{"series":0,"x":90,"y":384.89,"xLabel":"$1.5 million","yLabel":"3.3"},{"series":1,"x":90,"y":198.6,"xLabel":"$1.5 million","yLabel":"9.6"},{"series":2,"x":90,"y":188.3,"xLabel":"$1.5 million","yLabel":"10.0"},{"series":3,"x":90,"y":305.72,"xLabel":"$1.5 million","yLabel":"6.0"},{"series":0,"x":508,"y":336.33,"xLabel":"$2 million","yLabel":"5.0"},{"series":1,"x":508,"y":196.54,"xLabel":"$2 million","yLabel":"9.7"},{"series":2,"x":508,"y":163.88,"xLabel":"$2 million","yLabel":"10.8"},{"series":3,"x":508,"y":283.65,"xLabel":"$2 million","yLabel":"6.7"},{"series":0,"x":926,"y":248.93,"xLabel":"$5 million","yLabel":"7.9"},{"series":1,"x":926,"y":193.01,"xLabel":"$5 million","yLabel":"9.8"},{"series":2,"x":926,"y":120.03,"xLabel":"$5 million","yLabel":"12.3"},{"series":3,"x":926,"y":243.63,"xLabel":"$5 million","yLabel":"8.1"}]}Washington's effective rate on high earners is lowest of four high-rate states0.02.04.06.08.010.012.014.0$1.5 million$2 million$5 millionHousehold wages (married filing jointly)WashingtonOregonCaliforniaMassachusettsWashingtonOregonCaliforniaMassachusettsFactHub · State income tax as % of income
Effective state income tax for a married couple with wages only. Washington's rate is 9.9% at the margin but lowest on average, because the first $1 million is untaxed. FactHub calculation; Washington under the 2028 law, other states under 2026 brackets. View source chart
3. Capital gains already face 9.9% Department of Revenue guidance compared with the Tax Foundation table

The Department of Revenue says Washington capital gains above $1 million are 'subject to a 7% tax, plus an additional 2.9% tax', a 9.9% top rate since 2025. The Tax Foundation's 2026 table describes the change as 'a new top marginal rate of 9 percent', which understates it. ESSB 6346 extends the same 9.9% top rate to wages and other income.

Limit: Washington's courts treat the capital gains tax as an excise, not an income tax; it is included here because it taxes the same high-income households.

Verify: New tiered rates for Washington's capital gains tax (special notice) State Individual Income Tax Rates and Brackets, 2026

4. The 18.037% Seattle figure adds payroll taxes Breakdown of the Tax Foundation's combined-rate calculation

The Tax Foundation calculated that the tax 'would yield a top rate of 18.037 percent on wage income and restricted stock units (RSUs) vesting in Seattle'. The figure is 9.9% income tax plus 0.58% WA Cares, the 5% Seattle Social Housing Tax and the 2.557% top JumpStart payroll tax; the last two are paid by employers, and the Tax Foundation notes the total is 'split across employer and employee'. No federal tax is included; adding it gives the Tax Foundation's all-in 57.937%.

Limit: Who ultimately bears an employer payroll tax is an economic question; the Tax Foundation assumes workers do.

Verify: Proposed Washington Income Tax Would Yield a Top Rate of More Than 18 Percent (Jan. 14, 2026) Components of the 18.037% Seattle combined top rate on wages

Common questions

“Washington would have the highest state income tax rate in the country.”

Short answer: False: tied for fifth

California (13.3%), Hawaii, New York (10.9%), New Jersey (10.75%) and the District of Columbia (10.75%) all have higher top rates. Washington's 9.9% would tie Oregon's.

“Tax Foundation: the tax 'would yield a top rate of 18.037 percent on wage income and restricted stock units (RSUs) vesting in Seattle, the highest rate in the country.'”

Short answer: Only counting employer payroll taxes

The arithmetic is right, but 7.557 of the 18.037 points are Seattle payroll taxes that employers pay and 0.58 points are the state's long-term-care payroll tax. Counting income taxes only, Seattle's top rate would be 9.9%. Our separate fact check found that Seattle has sent part of its JumpStart payroll tax to its general fund.

Related claim: Seattle has used JumpStart payroll tax money to balance its budget every year. — Every Seattle budget from 2022 to 2026 sent $84 million to $305 million of JumpStart payroll tax money to the General Fund (True).

“A 9.9% top rate overstates what Washington's high earners would pay.”

Short answer: Yes: 3.3% to 7.9% on average

True. Because the household's first $1 million is untaxed, couples with $1.5 million to $5 million of wages would pay 3.3% to 7.92% of their income, the lowest of the four high-rate states we compared. The rating is about the top rate, which is what the claim names.

“Washington already has a 9.9% tax on high incomes, the capital gains tax.”

Short answer: On gains only, since 2025

The capital gains tax reaches 9.9% on long-term gains over $1 million, but it does not tax wages, business income or retirement income. The new tax extends 9.9% to those, which is what moves Washington into the top five for income generally.

Conclusion

Measured the usual way, by each state's top statutory income tax rate, Washington would go from no tax on wages to 9.9%, tied with Oregon for fifth among the 50 states: only California (13.3%), Hawaii, New York (10.9%) and New Jersey (10.75%) are higher, and the District of Columbia matches New Jersey. The ranking holds whether Hawaii's top rate is its 2026 11% or the 13% reported for 2027. So 'one of the five highest' is accurate, and 'the highest in the nation' is not. Two facts cut the other way and belong with the ranking. First, a top rate is not what people pay. Because the first $1 million of household income is untaxed, a married couple with $2 million of wages would pay 4.95% of its income in Washington, about half of what it would pay in Oregon (9.70%) or California (10.81%) and less than in Massachusetts (6.74%); Washington's average rate stays the lowest of the four at $1.5 million and $5 million too. Second, Washington's rate starts far higher up the income scale than Oregon's, which reaches 9.9% at $250,000 for couples. The Tax Foundation's 18.037% figure for Seattle, described as the highest in the country, is a different measure: it adds the long-term-care payroll tax and two Seattle payroll taxes paid by employers to the 9.9% income tax. Washington's capital gains already face a 9.9% top rate under the 2025 surcharge, which the Tax Foundation's own 2026 table misstates as 9%. We rate the claim True with high confidence; the rates are statutory and the ranking does not depend on the one figure we could not check against statute.

How we checked

  1. Defined the claim as a comparison of top statutory state individual income tax rates for tax year 2028, under law as of October 21, 2026.
  2. Read the Tax Foundation's 2026 rate table and checked Washington's rate against ESSB 6346 and its capital gains rate against the Department of Revenue.
  3. Ranked the states by top rate, testing whether Hawaii's reported increase changes Washington's rank.
  4. Computed effective rates for married couples with $1.5 million, $2 million and $5 million of wages from each state's brackets; the inputs and script are in the FactHub dataset.
  5. Broke down the Tax Foundation's 18.037% Seattle figure into its components.

Editorial note: Scope: top statutory state individual income tax rates for tax year 2028 under law as of October 21, 2026, from the Tax Foundation's 2026 table, with Washington's rate from ESSB 6346. Hawaii's reported 2027 increase comes from news reports. Effective rates are FactHub's own calculations for married couples with wages only. Local income taxes (such as New York City's) and payroll taxes are outside the ranking.

Expert-review status

No external specialist review has been recorded.

Funding and conflicts

Funding: No external funding for this piece.

Ownership: Published by the FactHub Research Team.

Conflicts: None known.

Sources

Sources are labeled by kind, with what this fact check takes from each, so readers can check the evidence independently.

  1. Advocacy group Tax Foundation. State Individual Income Tax Rates and Brackets, 2026

    Annual table of state income tax rates and brackets, rates as of February 2026.

    Reliability: A nonprofit that favors low, broad-based taxes; its annual state rate table is a standard reference. It misstates Washington's top capital gains rate as 9%.

    • California has the highest top state income tax rate, 13.3%.

      What the source says
      Top marginal rates span from 2.5 percent in Arizona and North Dakota to 13.3 percent in California.
      Introduction

    • Qualifies: The table describes Washington's 2025 capital gains change as a 9% top rate, which understates the 9.9% the law sets.

      What the source says
      a new top marginal rate of 9 percent on capital gains income exceeding $1 million
      Notable changes, Washington
  2. Government Washington State Legislature. ESSB 6346, chapter 238, Laws of 2026 (session law)

    The enacted text of the tax.

    Reliability: The law as signed March 30, 2026.

    • The tax equals 9.9% of Washington taxable income, from January 1, 2028.

      What the source says
      equals 9.90 percent multiplied by an individual's Washington taxable
      Sec. 201(1), p. 5
  3. Government Washington State Department of Revenue. New tiered rates for Washington's capital gains tax (special notice)

    The administering agency's notice of the 2025 capital gains surcharge.

    Reliability: The agency that administers the capital gains tax.

    • Qualifies: Washington capital gains above $1 million are taxed at 7% plus 2.9%, or 9.9%.

      What the source says
      Any amount of Washington capital gains exceeding $1 million is subject to a 7% tax, plus an additional 2.9% tax.
      Rates
  4. Advocacy group Tax Foundation. Proposed Washington Income Tax Would Yield a Top Rate of More Than 18 Percent (Jan. 14, 2026)

    Analysis of the combined state and local top marginal rate on wages in Seattle.

    Reliability: A nonprofit that favors low, broad-based taxes; it counts employer-paid payroll taxes as falling on employees.

    • Qualifies: The Tax Foundation calls Seattle's 18.037% combined top rate on wages the highest in the country.

      What the source says
      would yield a top rate of 18.037 percent on wage income and restricted stock units (RSUs) vesting in Seattle, the highest rate in the country.
      Opening paragraph

    • Qualifies: The 18.037% is split between employer and employee taxes.

      What the source says
      18.037 percent (split across employer and employee)
      Second paragraph
  5. FactHub record FactHub. Top state income tax rates in 2028

    FactHub's ranking of state top rates for 2028.

    • Washington's 9.9% ties Oregon for fifth among states, behind California, Hawaii, New York and New Jersey; the rank is the same if Hawaii's rate is 11% or 13%.

  6. FactHub record FactHub. Effective state income tax rates for married couples, wages only

    FactHub's calculation of average state income tax rates at three income levels.

    • Qualifies: Washington's average rate is 3.3% at $1.5 million, 4.95% at $2 million and 7.92% at $5 million, the lowest of Washington, Oregon, California and Massachusetts at each level.

  7. FactHub record FactHub. Components of the 18.037% Seattle combined top rate on wages

    The Tax Foundation's components, tabulated by FactHub.

    • Qualifies: 18.037% = 9.9% income tax + 0.58% WA Cares + 5% Social Housing Tax + 2.557% JumpStart; only 9.9 points are income tax.

  8. FactHub dataset Top state income tax rates in 2028, Washington's place among them, and effective rates for high-income households

    • Tables: top-rates

      Analysis top-rates-2028

    • Tables: effective-rates

      Analysis effective-rates

    • Tables: seattle-combined

      Analysis seattle-combined

  9. FactHub chart effective-state-income-tax-high-earners

Update history

  1. Disclosure updated; removed links to companion drafts until they are final. No change to the rating, evidence or data.
  2. First version.

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