Washington’s 9.9% Income Tax and Remote Workers: Who Owes What?
Washington's new 9.9% income tax raises hard questions for remote workers who split time between states. Residency, source rules, and duty-day allocations all matter — here's how.
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Washington's new 9.9% income tax raises hard questions for remote workers who split time between states. Residency, source rules, and duty-day allocations all matter — here's how.
ISOs, NQSOs, RSUs, and restricted stock each interact differently with Washington's new 9.9% income tax. Here's what changes in 2028 — and what you can do before then.
Short answer: no — gains from the sale of real property are excluded from Washington’s 9.9% income tax under ESSB 6346, but classification questions can get complicated fast.
Washington's 30-day safe harbor only helps if you're already domiciled here. This explains the domicile vs residency tests, what the 30-day rule does and doesn't save you from on both income tax and capital gains, and the planning traps as the 9.9% rate starts on Jan. 1, 2028.
Washington's millionaires' tax (ESSB 6346 / HB 2724) is projected to raise around $3.2B. History suggests revenues underperform once migration, timing, and income-shifting responses kick in—we expect closer to $2B.
Washington’s 9.9% income tax takes effect January 1, 2028. When is the first payment due, and when do estimated tax payments start? Here’s the timeline for high earners.