Initiative Measure IP26-645: State and Local Taxes

The law today

Per the Attorney General's explanatory statement, the 2026 Legislature (ESSB 6346) imposed a 9.9 percent tax on an individual's receipt of income over $1,000,000 beginning in calendar year 2028, with a $1,000,000 per-household standard deduction (indexed to inflation from 2029) and a deduction of up to $100,000 for charitable contributions. Five percent of collections go to an account restricted to childcare and early learning and 95 percent to the state general fund. The same law also eliminated sales tax on diapers, over-the-counter drugs, grooming and hygiene products and certain software and digital services, reduced business and occupation taxes, and expanded the Working Families Tax Credit.[1]

Official fiscal estimate

The Office of Financial Management estimates the initiative would reduce state revenue by $11,432,414,000 over state fiscal years 2027-2031 (general fund, federal general fund and the Fair Start for Kids account; SFY 2029 $3.108 billion, SFY 2030 $4.432 billion, SFY 2031 $3.892 billion), including $377,000,000 that would no longer be transferred to the Fair Start for Kids account. It estimates net state agency savings of $150,471,700 over the same five years (mostly the Department of Revenue, $149,844,700) and no impact on local revenue.[1]

Arguments made for

• Argument for (written by State Sen. Chris Gildon and others): “Over the last 90 years, Washingtonians have rejected an income tax ten times because they knew it would threaten economic growth, discourage investment, and reach beyond the people originally targeted. This year, the Legislature enacted a new income tax anyway. I-645 restores your right to decide.”[1]
• Argument for: “Supporters insist the tax is narrow, applying only to income above $1 million. But lawmakers rejected opportunities to permanently limit its reach, giving Olympia the ability to expand the income tax to everyone.”[1]
• Rebuttal of the argument against (same authors): “I-645 repeals the income tax. Without I-645, Olympia can expand the income tax to reach into your paycheck with the simple stroke of a pen. No public vote and no permission required, any time they want.”[1]

Arguments made against

• Argument against (written by Washington Education Association president Janie White and others): “I-645 is fiscally irresponsible, slashing billions in funding for education and healthcare, increasing taxes on 460,000 hard-working families, and jeopardizing tax cuts for thousands of small businesses.”[1]
• Argument against: “This measure cuts funding for K-12 public schools, healthcare, childcare, and other important public services by $13 billion over four years. That means larger class sizes, higher costs for healthcare and childcare, and the elimination of free school lunches for many children.”[1]
• Rebuttal of the argument for (same authors): “The Millionaires Tax only applies to those making above one million dollars per year. Any attempt to expand it to those of us making under a million would be decided on the ballot - voters always have the final say.”[1]

On record in support

• Let's Go Washington and its founder Brian Heywood, who backs I-645 (KOMO News: the group said the Secretary of State verified enough signatures; Heywood: "Someone has to fight.")[3]
• Vote Yes Repeal the Income Tax, the political committee registered with the Public Disclosure Commission in support of IP26-645[4]
• State Sen. Chris Gildon (R-Puyallup), lead author of the official voters' pamphlet statement in favor, with small business owner Viet Nguyen, Jesse Proudman, Patti Mann and others[1]

On record in opposition

• Gov. Bob Ferguson, who launched the No on 645 campaign with organized labor and said he would veto any legislative action lowering the threshold below $1 million[3][5]
• No on 645, the coalition campaign committee (listing ACLU of Washington, AFT-Washington, League of Women Voters, SEIU locals and many other community organizations and elected officials)[5][4]
• Washington Education Association (president Janie White wrote the pamphlet statement against)[1]
• Washington State Labor Council (president April Sims, an author of the pamphlet statement against)[1]
• Planned Parenthood Advocates of Greater Washington, listed among the authors of the pamphlet statement against[1]