Governor Bob Ferguson has signed Senate Bill 6347, rolling back Washington’s estate tax rate schedule to the prior graduated range (10% to 20%) for estates of decedents dying on or after July 1, 2026. The current maximum rate of 35% continues to apply to estates of decedents dying from July 1, 2025 through June 30, 2026.
If you’ve been following this saga, the reversal is striking. In 2025, the legislature increased the top estate tax rate from 20% to 35% on Washington taxable estate values above $9 million (after the applicable exclusion) as part of a package to close a budget shortfall. That higher rate schedule applies to dates of death beginning July 1, 2025—so this rollback effectively creates a one-year window of 35% exposure for deaths before July 1, 2026.
What Changed
SB 6347 restores the graduated rate structure that was in place before last year’s increase. The lowest rate remains 10%, and the top rate returns to 20% for estates of decedents dying on or after July 1, 2026.
The bill passed with strong bipartisan margins: 85-8 in the House and 39-10 in the Senate.
What This Means for Estate Planning
If you’re a high-net-worth individual in Washington, this is welcome news—but it doesn’t mean you can stop planning. A few things to keep in mind:
- Washington estate tax rates are determined based on the decedent’s date of death.
- The 35% rate schedule continues to apply through June 30, 2026; only deaths on or after July 1, 2026 benefit from the rollback.
- The applicable exclusion amount is indexed. The Department of Revenue currently lists $3,076,000 for decedents dying in 2026, but check the DOR tables for the relevant year.
- Washington still has one of the lowest estate tax thresholds in the country, so the estate tax continues to be a significant planning consideration for many families.
- The political environment remains fluid. The legislature raised and then reversed this rate within a single year. Future sessions could revisit estate tax rates, particularly if budget pressures return.
The Takeaway
This is a meaningful correction. A 35% top rate was a significant outlier nationally, and its rollback removes a real source of uncertainty for estate planning in Washington. But the underlying planning challenges—a relatively low exclusion, no portability, and an active legislature—haven’t changed.
