Washington’s Estate Tax Rollback: What You Need to Know

Are you aware of the latest changes to estate tax laws in Washington? As of February 2026, Democrats in Olympia are proposing a rollback of estate tax rates established in 2025, potentially impacting those with significant estates. Senate Bill 6347, introduced by Senator Claudia Kauffman, aims to revert the estate tax brackets to their previous rates, raising concerns among estate planners and wealthy individuals alike.

Last year’s adjustments saw steep increases in estate tax rates, especially affecting estates valued at $9 million or more, which saw their tax rate jump from 20% to an eye-watering 35%, the highest in the nation. The bill proposes to revert these rates significantly, suggesting that the state’s projected revenue from the estate tax may not have materialized as anticipated. This adjustment could encourage some individuals to remain in Washington rather than relocate to states with more favorable tax environments.

The proposed rollback would affect all eight tax brackets. For instance, estates valued between $7 million and $9 million would see their rate drop from 30% back to 19.5%, and those between $6 million and $7 million would go from 26% to 19%. The changes continue downward, with smaller adjustments for estates valued at $3 million to $4 million, $2 million to $3 million, and so on, with the lowest bracket remaining unchanged at 10% for estates under $1 million.

Critics of the estate tax often label it a death tax, arguing that it penalizes wealth accumulation. Currently, 12 states and the District of Columbia impose some form of estate tax in addition to the federal estate tax, which has a top rate of 40%. As the landscape of estate taxes evolves, understanding these changes is crucial for effective estate planning.

If you have a significant estate or are involved in estate planning, consider revisiting your strategy. The rollback could present an opportunity to reassess how you structure your assets and plan for the future. Keep an eye on further developments, as this legislation progresses through the Senate. Staying informed will help you ensure that your estate plan aligns with the latest legal landscape.

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