Five-second answer

Claim we investigated

Four years after enacting its 7% capital gains tax, Washington added a 2.9% surcharge on gains over $1 million, and two years after adopting I-2111's income-tax ban, it carved the millionaires tax out of it.

True. ESSB 5813 added the surcharge in 2025, and ESSB 6346 amended the I-2111 ban in 2026. The statutes as codified, the Legislature's bill reports and roll calls, and the I-2111 bill history all show both changes, by simple majority and within four and two years; the 2026 estate-tax rollback shows the Legislature also reverses course.

Quote or cite this fact-check

FactHub rates the claim “Four years after enacting its 7% capital gains tax, Washington added a 2.9% surcharge on gains over $1 million, and two years after adopting I-2111's income-tax ban, it carved the millionaires tax out of it” True (high confidence): ESSB 5813 added the surcharge in 2025, and ESSB 6346 amended the I-2111 ban in 2026. Reviewed October 21, 2026. https://facthub.org/n/article/wa-narrow-taxes-grew/1

One-minute summary

What the evidence establishes

  • Established. Washington's capital gains tax began in 2022 at a flat 7% on gains above a $250,000 deduction. In May 2025 the Legislature added 2.9% on gains over $1 million, making the top rate 9.9%, effective for all of tax year 2025.
  • Established. Lawmakers adopted Initiative 2111's ban on state and local personal income taxes unchanged in March 2024 (House 76-21, Senate 38-11). In March 2026, ESSB 6346 amended it so the ban does not apply to the new tax 'so long as the standard deduction is at least $1,000,000 for a household.'
  • Established. Both the 2025 surcharge and the 2026 income tax carried a clause declaring them necessary for the support of state government, which under the state constitution keeps a law from being referred to voters.
  • Established. The record is not one-way. The same 2025 bill raised the estate tax's top rate from 20% to 35%; in 2026 lawmakers restored the old rates by 85-8 in the House and 39-10 in the Senate.
  • Established. The capital gains tax's $250,000 base deduction has risen with inflation ($270,000 by 2025), so the line for the 7% rate has gone up, not down. The new $1 million line for the 2.9% surcharge is not indexed.
  • Not shown. These are two cases. They show what Washington lawmakers have done with recent narrow taxes, not what they will do with the millionaires tax.
Important context: Initiative 645 on the November 3, 2026 ballot would repeal ESSB 6346, Washington's 9.9% tax on household income above $1 million, which starts in 2028. Supporters of I-645 argue that taxes sold as narrow tend to grow. This article checks the two most recent Washington examples, the capital gains tax and the I-2111 income-tax ban, and the main counterexample, the estate tax. It records what happened; it does not predict what a future Legislature will do with the millionaires tax.

The evidence

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

Independence note: This check uses 6 methods across 2 institutions and 1 country or international grouping.
Evidence map
Method Institution / country Year(s) What it shows Key limitation Primary links
Reading of the codified statute (RCW 82.87.040) and the Senate's final bill report for ESSB 5813, including final-passage votes. Washington State Legislature United States 2021, 2025 RCW 82.87.040 imposes the original tax of 'seven percent' on Washington capital gains beginning January 1, 2022. ESSB 5813 (chapter 421, Laws of 2025) added a second tier: 2.90 percent on the portion of gains over $1,000,000, starting with tax year 2025, so the rate on the largest gains became 9.9%. The bill passed the Senate 27-21 and the House 53-45 and was signed May 20, 2025, so it reached back to gains realized since January 1 of that year. Statutes and bill reports show what was enacted, not why. The capital gains tax was enacted in 2021 (SB 5096) and first applied to 2022 gains, so the surcharge came four years after enactment and three tax years after collection began. RCW 82.87.040 Senate final bill report, ESSB 5813 (2025)
Reading of RCW 1.90.100 as amended, the I-2111 legislative history, and the codified millionaires tax (RCW 82A.04.030). Washington State Legislature United States 2024, 2026 Initiative 2111 was an initiative to the Legislature, which adopted it unchanged in March 2024 (House 76-21, Senate 38-11); it took effect June 6, 2024. It says neither the state nor any local government 'may tax any individual person on any form of personal income.' Section 1201 of ESSB 6346, signed March 30, 2026, added a subsection exempting the new 9.9% tax so long as the standard deduction is at least $1,000,000 per household. The tax itself applies to income received from January 1, 2028. I-2111 was a statute, not a constitutional provision, so any later Legislature could amend it by majority vote; the amendment was lawful and was debated openly. Whether the new tax is constitutional is a separate question now in court and is not addressed here. RCW 1.90.100 Washington Legislature bill summary, Initiative 2111 RCW 82A.04.030
Reading of the necessity and emergency clauses in each act and of Article II, section 1(b) of the Washington Constitution. Washington State Legislature United States 2025, 2026 ESSB 5813 declared that the act 'is necessary for the support of the state government and its existing public institutions' and took effect immediately; the same language now appears in RCW 82.87.040. ESSB 6346 contains the same declaration (section 1208). The state constitution exempts such laws from the referendum, so neither change could be put to voters by referendum petition. Necessity clauses are common in Washington tax bills and are not unique to these two acts. Voters can still challenge either law by initiative, as I-645 does for the income tax. RCW 82.87.040 ESSB 5813 session law (chapter 421, Laws of 2025) RCW 82A.04.030
Reading of the Senate final bill report for ESB 6347, which tabulates the old, 2025 and 2026 rate schedules and records final-passage votes. Washington State Legislature United States 2025, 2026 ESSB 5813 raised estate-tax rates for deaths on or after July 1, 2025, with the top bracket going from 20% to 35%, and raised the exclusion from $2.193 million to $3 million. One year later ESB 6347 restored the pre-2025 rate schedule (top rate 20%) for deaths on or after July 1, 2026, while keeping the $3 million exclusion. It passed the Senate 38-11 and 39-10 and the House 85-8. The rollback kept the higher $3 million exclusion adopted in 2025, so estates are taxed less than before 2025, not exactly as before. The bill report does not record lawmakers' reasons. Senate final bill report, ESB 6347 (2026)
Reading of RCW 82.87.060 and 82.87.150 and the ESSB 5813 bill report. Washington State Legislature United States 2021, 2025 The original law set a standard deduction of $250,000, adjusted every year for inflation. By 2025 the Senate bill report put it at $270,000. So the line at which the 7% rate starts has moved up, not down, since 2022. Indexing protects the $250,000 base deduction only. The $1 million line for the 2.9% surcharge is not among the indexed amounts. RCW 82.87.060 RCW 82.87.150 Senate final bill report, ESSB 5813 (2025)
Department of Revenue net payment counts by tax year, as compiled in a FactHub dataset. Washington Department of Revenue United States 2022, 2023, 2024, 2025 Net payments rose from 3,625 for tax year 2022 to 9,050 for tax year 2025 (initial), while collections went from $782.0 million to about $1.5 billion. This is context for the claim: the tax's reach has grown with markets even though its base threshold rose. Payment counts are not the same as taxpayers, and 2025 figures are initial. The rise reflects stock-market gains, not a lower threshold; the surcharge added revenue, not payers. FactHub dataset: Washington millionaires tax reach (v2)
1. 2025: a 2.9% surcharge on capital gains over $1 million, four years after the tax was enacted Reading of the codified statute (RCW 82.87.040) and the Senate's final bill report for ESSB 5813, including final-passage votes.

RCW 82.87.040 imposes the original tax of 'seven percent' on Washington capital gains beginning January 1, 2022. ESSB 5813 (chapter 421, Laws of 2025) added a second tier: 2.90 percent on the portion of gains over $1,000,000, starting with tax year 2025, so the rate on the largest gains became 9.9%. The bill passed the Senate 27-21 and the House 53-45 and was signed May 20, 2025, so it reached back to gains realized since January 1 of that year.

Limit: Statutes and bill reports show what was enacted, not why. The capital gains tax was enacted in 2021 (SB 5096) and first applied to 2022 gains, so the surcharge came four years after enactment and three tax years after collection began.

Verify: RCW 82.87.040: Tax imposed — Long-term capital assets Final Bill Report ESSB 5813, C 421 L 25

2. 2026: the income-tax ban was amended two years after lawmakers adopted it Reading of RCW 1.90.100 as amended, the I-2111 legislative history, and the codified millionaires tax (RCW 82A.04.030).

Initiative 2111 was an initiative to the Legislature, which adopted it unchanged in March 2024 (House 76-21, Senate 38-11); it took effect June 6, 2024. It says neither the state nor any local government 'may tax any individual person on any form of personal income.' Section 1201 of ESSB 6346, signed March 30, 2026, added a subsection exempting the new 9.9% tax so long as the standard deduction is at least $1,000,000 per household. The tax itself applies to income received from January 1, 2028.

Limit: I-2111 was a statute, not a constitutional provision, so any later Legislature could amend it by majority vote; the amendment was lawful and was debated openly. Whether the new tax is constitutional is a separate question now in court and is not addressed here.

Verify: RCW 1.90.100: Personal income tax prohibition Initiative 2111 (2023-24): bill history RCW 82A.04.030: Tax imposed — Rates

3. Both expansions were shielded from a referendum Reading of the necessity and emergency clauses in each act and of Article II, section 1(b) of the Washington Constitution.

ESSB 5813 declared that the act 'is necessary for the support of the state government and its existing public institutions' and took effect immediately; the same language now appears in RCW 82.87.040. ESSB 6346 contains the same declaration (section 1208). The state constitution exempts such laws from the referendum, so neither change could be put to voters by referendum petition.

Limit: Necessity clauses are common in Washington tax bills and are not unique to these two acts. Voters can still challenge either law by initiative, as I-645 does for the income tax.

Verify: RCW 82.87.040: Tax imposed — Long-term capital assets Engrossed Substitute Senate Bill 5813, as passed RCW 82A.04.030: Tax imposed — Rates

4. Counterexample: the 2025 estate-tax increase was reversed in 2026 Reading of the Senate final bill report for ESB 6347, which tabulates the old, 2025 and 2026 rate schedules and records final-passage votes.

ESSB 5813 raised estate-tax rates for deaths on or after July 1, 2025, with the top bracket going from 20% to 35%, and raised the exclusion from $2.193 million to $3 million. One year later ESB 6347 restored the pre-2025 rate schedule (top rate 20%) for deaths on or after July 1, 2026, while keeping the $3 million exclusion. It passed the Senate 38-11 and 39-10 and the House 85-8.

Limit: The rollback kept the higher $3 million exclusion adopted in 2025, so estates are taxed less than before 2025, not exactly as before. The bill report does not record lawmakers' reasons.

Verify: Final Bill Report ESB 6347, C 209 L 26

5. Counterexample: the capital gains deduction has risen with inflation Reading of RCW 82.87.060 and 82.87.150 and the ESSB 5813 bill report.

The original law set a standard deduction of $250,000, adjusted every year for inflation. By 2025 the Senate bill report put it at $270,000. So the line at which the 7% rate starts has moved up, not down, since 2022.

Limit: Indexing protects the $250,000 base deduction only. The $1 million line for the 2.9% surcharge is not among the indexed amounts.

Verify: RCW 82.87.060: Deductions RCW 82.87.150: Annual adjustments Final Bill Report ESSB 5813, C 421 L 25

6. The tax now reaches more payers, mostly because of markets Department of Revenue net payment counts by tax year, as compiled in a FactHub dataset.

Net payments rose from 3,625 for tax year 2022 to 9,050 for tax year 2025 (initial), while collections went from $782.0 million to about $1.5 billion. This is context for the claim: the tax's reach has grown with markets even though its base threshold rose.

Limit: Payment counts are not the same as taxpayers, and 2025 figures are initial. The rise reflects stock-market gains, not a lower threshold; the surcharge added revenue, not payers.

Verify: Washington capital gains tax collections by tax year

Common questions

“Yes on I-645 voters' pamphlet heading: "Taxes Always Expand."”

Short answer: Not always

The two cases here did expand within a few years, but the estate tax is a recent counterexample: lawmakers raised it in 2025 and repealed the increase in 2026 by lopsided bipartisan votes. The capital gains base deduction has also risen with inflation. 'Often expand' is supported by these cases; 'always' is not.

“Voters approved of the capital gains tax, so the 2025 increase followed their wishes.”

Short answer: They kept the 7% tax

In November 2024, 64.11% of voters rejected I-2109, the measure to repeal the capital gains tax, as the Legislature itself noted in ESSB 5813. That vote was on the existing 7% tax. The 2.9% surcharge passed the next spring with a necessity clause, so voters could not refer it to the ballot.

“This proves the millionaires tax threshold will be lowered.”

Short answer: No

Two precedents show what lawmakers have done, not what they will do. No bill to lower the $1 million deduction has been filed, and Gov. Bob Ferguson has pledged to veto any attempt while he is governor. What the precedents do show is that each change took one bill and a simple majority.

Conclusion

The claim is accurate on both counts and rests on primary legislative records. Washington's capital gains tax took effect in 2022 at a flat 7%; ESSB 5813, signed May 20, 2025, added 2.9% on gains over $1 million, retroactive to January 1, 2025. Initiative 2111's ban on personal income taxes was adopted by the Legislature in March 2024 and amended by ESSB 6346 in March 2026 to exempt the new 9.9% tax. Each change passed by simple majority, and each act declared itself necessary for the support of state government, which keeps it off the referendum ballot. The counterevidence is real and belongs beside the finding. The same 2025 bill raised the estate tax, and lawmakers reversed the rate increase within a year by large bipartisan margins. The capital gains tax's base deduction is indexed and has risen, so the tax did not reach down to smaller gains; it reached up, with a higher rate on the largest ones. And voters had kept the 7% tax in 2024. So the record supports a narrow conclusion: recent Washington taxes on high earners have been raised within a few years by ordinary majorities, but not every increase has stuck, and none of this predicts what will happen to the millionaires tax's $1 million threshold. Confidence is high because every fact comes from the statute, the bill reports or the roll calls.

How we checked

  1. Defined the claim as two dated events: the capital gains surcharge relative to the original tax, and the I-2111 amendment relative to its adoption.
  2. Read the codified statutes (RCW 82.87.040, 82.87.060, 82.87.150, 1.90.100, 82A.04.030) on the Legislature's website.
  3. Read the Senate final bill reports for ESSB 5813 and ESB 6347 and the ESSB 5813 session law for votes, dates, findings and the emergency clause, and the I-2111 bill history for its adoption votes.
  4. Searched for counterexamples among recent Washington tax changes and included the estate-tax rollback and the indexed capital gains deduction.
  5. Recorded limits for each item, including what the records cannot show about intent.

Editorial note: Scope: two Washington precedents and one counterexample, chosen because they are the most recent changes to taxes on high earners. Other states' millionaire taxes and federal thresholds are outside this article. FactHub does not take a position on I-645.

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. Government RCW 82.87.040. RCW 82.87.040: Tax imposed — Long-term capital assets

    The codified capital gains tax rates, as amended by ESSB 5813 (2025).

    Reliability: Official codified Washington law published by the Legislature's Code Reviser.

    • The capital gains tax began January 1, 2022 at a flat 7%.

      What the source says
      Beginning January 1, 2022, an excise tax is imposed on the sale or exchange of long-term capital assets. Only individuals are subject to payment of the tax, which equals seven percent multiplied by an individual's Washington capital gains.
      RCW 82.87.040(1)(a)

    • From January 1, 2025, an extra 2.9% applies to gains over $1 million.

      What the source says
      Beginning January 1, 2025, an additional excise tax is imposed on the sale or exchange of long-term capital assets, which equals 2.90 percent multiplied by the portion of an individual's Washington capital gains exceeding $1,000,000.
      RCW 82.87.040(1)(b)

    • The tax is declared necessary for the support of state government, which exempts it from referendum.

      What the source says
      The tax levied in subsection (1) of this section is necessary for the support of the state government and its existing public institutions.
      RCW 82.87.040(2)
  2. Government Senate final bill report, ESSB 5813 (2025). Final Bill Report ESSB 5813, C 421 L 25

    Nonpartisan staff summary of the 2025 law that added the capital gains surcharge and raised estate-tax rates.

    Reliability: Prepared by nonpartisan Senate staff; it states it is not a statement of legislative intent.

    • The 9.9% rate on gains over $1 million applies from tax year 2025.

      What the source says
      Beginning with tax year 2025 and tax collection in calendar year 2026
      Summary, p. 2

    • ESSB 5813 passed the Senate 27-21 and the House 53-45.

      What the source says
      Senate 27 21 House 53 45 (House amended)
      Votes on Final Passage, p. 3

    • Qualifies: By 2025 the capital gains standard deduction had been adjusted up to $270,000.

      What the source says
      less a standard deduction of $270,000 for all filers
      Background, p. 1
  3. Government ESSB 5813 session law (chapter 421, Laws of 2025). Engrossed Substitute Senate Bill 5813, as passed

    The enacted text of the 2025 capital gains and estate tax law, including its findings and emergency clause.

    Reliability: Official enacted text. Its findings section reflects the Legislature's own framing.

    • Qualifies: The Legislature's findings note that voters upheld the capital gains tax in 2024.

      What the source says
      of Washington voters in 32 of its 39 counties voted to uphold the
      Sec. 1(2), p. 1-2

    • The act declared itself necessary for the support of state government and took effect immediately.

      What the source says
      NEW SECTION. Sec. 305. This act is necessary for the support of
      Sec. 305, p. 17
  4. Government RCW 82.87.060. RCW 82.87.060: Deductions

    The capital gains tax standard deduction.

    Reliability: Official codified Washington law.

    • Qualifies: The base deduction was set at $250,000 and is adjusted under RCW 82.87.150.

      What the source says
      A standard deduction of $250,000 per individual
      RCW 82.87.060(1)
  5. Government RCW 82.87.150. RCW 82.87.150: Annual adjustments

    The annual inflation adjustment for capital gains tax amounts.

    Reliability: Official codified Washington law.

    • Qualifies: The capital gains deduction is adjusted for inflation every October.

      What the source says
      Beginning October 2025 and each October thereafter, the department must adjust the applicable amounts
      RCW 82.87.150(1)
  6. Government RCW 1.90.100. RCW 1.90.100: Personal income tax prohibition

    Initiative 2111's ban on personal income taxes, as amended in 2026.

    Reliability: Official codified Washington law; the page lists the 2024 initiative and the 2026 amendment as its history.

    • I-2111 bars state and local taxes on personal income.

      What the source says
      Neither the state nor any county, city, or other local jurisdiction in the state of Washington may tax any individual person on any form of personal income.
      RCW 1.90.100(1)

    • The 2026 amendment exempts the new tax while the deduction is at least $1 million.

      What the source says
      Subsection (1) of this section does not apply to the tax authorized in chapter 82A.04 RCW so long as the standard deduction is at least $1,000,000 for a household.
      RCW 1.90.100(2)
  7. Government Washington Legislature bill summary, Initiative 2111. Initiative 2111 (2023-24): bill history

    Legislative history of Initiative 2111, an initiative to the Legislature, including roll-call results.

    Reliability: Official bill-tracking record maintained by the Legislature.

    • The House adopted I-2111 76-21 (the Senate 38-11), effective June 6, 2024.

      What the source says
      Third reading, passed; yeas, 76; nays, 21
      House actions, 2024 Regular Session
  8. Government RCW 82A.04.030. RCW 82A.04.030: Tax imposed — Rates

    The codified 9.9% tax on Washington taxable income (ESSB 6346, section 201), with notes on section 1208.

    Reliability: Official codified Washington law.

    • The 9.9% tax applies from January 1, 2028.

      What the source says
      Beginning January 1, 2028, a tax is imposed on the receipt of Washington taxable income.
      RCW 82A.04.030(1)

    • ESSB 6346 also declared itself necessary for the support of state government.

      What the source says
      The tax imposed in this act is necessary for the support of the state government and its existing public institutions.
      Notes: Necessity of act — 2026 c 238 s 1208
  9. Government Senate final bill report, ESB 6347 (2026). Final Bill Report ESB 6347, C 209 L 26

    Nonpartisan staff summary of the 2026 law that restored pre-2025 estate-tax rates.

    Reliability: Prepared by nonpartisan Senate staff; it tabulates the rate schedules and records final votes.

    • Contradicts: In 2025 the top estate-tax rate rose from 20% to 35%.

      What the source says
      $9,000,000 and up 20% 35%
      Background table, p. 2

    • Contradicts: For deaths from July 1, 2026, the top rate is back to 20%, with the $3 million exclusion kept.

      What the source says
      The exclusion amount changes to $3 million for decedents dying on or after July 1, 2026
      Summary, p. 2

    • Contradicts: The rollback passed by wide bipartisan margins.

      What the source says
      Senate 38 11 House 85 8 (House amended) Senate 39 10 (Senate concurred)
      Votes on Final Passage, p. 3
  10. Party to the dispute Washington Secretary of State, 2026 voters' pamphlet, I-645 statements. Initiative Measure IP26-645: arguments for and against

    The official pamphlet page with each campaign's statement, written by the campaigns.

    Reliability: Has a stake in this finding. The Secretary of State prints the statements as submitted; each side's text is its own advocacy.

    • Qualifies: The Yes statement's second heading asserts that taxes always expand.

      What the source says
      Taxes Always Expand
      Argument for, second heading · Yes on I-645 committee
  11. FactHub record FactHub dataset: Washington millionaires tax reach (v2). Washington capital gains tax collections by tax year

    Department of Revenue net collections and payment counts, tax years 2022-2025.

    • Qualifies: Net payments rose from 3,625 (tax year 2022) to 9,050 (2025, initial), and collections from $782.0 million to about $1.5 billion.

  12. FactHub dataset Washington millionaires tax: who files over $1 million, how the threshold holds up, and how volatile the base is

    Tables: capital-gains

    Table capital-gains; analysis capital-gains-collections

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