One year after dramatically increasing state estate tax rates, the Washington Legislature rolled back those rate increases to the pre-2025 rates and made other changes, all effective for deaths on or after July 1, 2026.
2025 Changes
For several years, Washington’s estate exclusion amount had been stuck at $2,193,000 because the Seattle-Tacoma-Bremerton inflation index to which the adjustment provision referred had become defunct. In 2025, the legislature increased the exclusion amount to $3,000,000 for deaths occurring on or after July 1, 2025 and provided for annual inflation adjustments beginning in 2026. The exclusion amount for deaths on or after January 1, 2026 was $3,076,000.
Also applicable for deaths on or after July 1, 2025, the legislature significantly increased the marginal estate tax rates. The top rate increased from 20% to 35%.
2026 Reversal
Less than one year after it enacted the 2025 changes described above, the Washington legislature reversed course on those changes in nearly every respect. For estates of decedents dying on or after July 1, 2026, the Washington exclusion amount is fixed at $3,000,000 (down from the $3,076,000 applicable for deaths from January 1, 2026 to June 30, 2026). The legislature effectively ended the inflation adjustment by inexplicably referencing the defunct Seattle-Tacoma-Bremerton index.
The legislature also restored the previous tax rate table for the estates of decedents dying on or after July 1, 2026. The below table reflects applicable marginal tax rates for the value of an estate that exceeds the applicable Washington exclusion amount.
| Taxable Amount in Excess of Exclusion | Marginal Rate from July 1, 2025 to June 30, 2026 | Marginal Rate before July 1, 2025 and after June 30, 2026 |
| $0 | 10% | 10% |
| $1,000,000 | 15% | 14% |
| $2,000,000 | 17% | 15% |
| $3,000,000 | 19% | 16% |
| $4,000,000 | 23% | 18% |
| $6,000,000 | 26% | 19% |
| $7,000,000 | 30% | 19.5% |
| $9,000,000 | 35% | 20% |
For more information: Washington Estate Tax