Washington Initiative Measure No. IP26-645 that would repeal a 9.9% Millionaires Tax on individual income over $1 million was failing Tuesday night in early returns. “No” votes on the measure, which would also prohibit future state income tax measures, were leading 58% to 42% as of 9:30 p.m.
Engrossed Substitute Senate Bill 6346 (2026) (ESSB 6346), which is the law imposing the 9.9% tax on income over $1 million, was passed by the Washington Legislature in March of 2026 and the tax is set to take effect January 1, 2028.
Revenue from this tax is slated to be split between two accounts, with five percent of the money going to early childhood education/childcare and 95% going to the state’s general fund. The general fund provides money for public K-12 education, higher education, healthcare and human services.
According to a statement from the Office of Financial Management provided for voter.votewa.gov, if approved the measure “will result in an estimated loss to state revenue of $11.4 billion over state fiscal years 2027-2031.” The statement went on to explain that the Washington Legislature had expressed intent to use the funds toward “providing free school meals, transferring funds for childcare and early learning and transferring funds to local governments to mitigate state sales tax loss.”
According to the Washington State Budget and Policy Center, which endorsed a No vote on the initiative, “Fewer than 1% of the wealthiest people in this state will pay it, and it is estimated to bring in more than $3 billion per year to our state budget.”
Groups endorsing a Yes vote on this measure expressed concern that an income tax on any bracket is a slippery slope to a wider state income tax. The Rebuttal to Argument For, which was written by a group of individuals including state Sen. Chris Gildon (R-Puyallup) on vote.votewa.gov stated, “an income tax on anyone will become an income tax on everyone.”
Votes will continue to be counted with most counties expecting updates on Nov 4. Tallies will be updated continuously on results.votewa.gov/results.
