Article | by Andrea Potter and Saskia Vervloet, CPA

Washington state lawmakers have reversed an estate tax increase that took effect July 1, 2025. Governor Bob Ferguson signed Senate Bill 6347 on March 24, 2026. For individuals and families with significant assets in Washington, understanding the specifics of what this new legislation does, how it is structured, and what planning questions remain open is important.

Senate Bill 6347 returns the top estate tax rate to 20% for decedents dying on or after July 1, 2026. Estates of individuals who die between July 1, 2025, and June 30, 2026, will remain subject to the 35% top rate. The legislation also makes adjustments to the applicable exclusion amount during this window, temporarily setting it at $3,076,000 for deaths occurring between January 1, 2026, and June 30, 2026, before returning it to $3,000,000 for decedents dying on or after July 1, 2026. Annual inflation adjustments to the exclusion amount, previously scheduled to begin in 2026, have been postponed to 2027.

For clients currently involved in estate planning or estate administration, the legislation’s date-sensitive structure is an important consideration. The applicable tax rates and exclusion amounts differ depending on the date of death. Decisions about the timing of distributions, asset valuations, and other elections may be affected by these distinctions. We recommend that individuals in this position consult with their advisor before finalizing any such decisions.

Separately, Washington lawmakers are also advancing a proposed 9.9% tax on high earners, commonly referred to as the “millionaire’s tax,” which has passed the Senate and House and has moved to the Governor. Governor Ferguson had previously indicated he wanted changes before he would sign it, and legal challenges are widely expected if any version is enacted. The fate of that measure is separate from Senate Bill 6347 and adds to the broader uncertainty facing Washington residents and business owners as they make planning decisions in the current environment.

If you have questions about how Senate Bill 6347 or any other Washington tax legislation may affect your estate plan, business structure, or residency considerations, please reach out to our Geffen Mesher Trust and Estate Team via info@gmco.com. We are monitoring these developments closely and will provide updates as the legislative landscape continues to evolve.