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.
Under ESSB 6346, Section 1202 QSBS gains should stay outside Washington’s new 9.9% income tax (for now). Here’s why, the audit risk, and what would have to change.
Your tax outcome in Washington depends on how you structure your equity, entity, and exit. This post walks through the planning levers founders, investors, and high earners can pull before 2028.
Governor Ferguson signed SHB 1155 on March 23, 2026, banning virtually all noncompetes in Washington effective June 30, 2027—retroactively. The prior income threshold and garden leave framework are gone. Here’s what changed and what you must do.
Governor Ferguson signed SB 6347 rolling back Washington's estate tax from the temporary 35% top rate to the prior 20% rate. The 35% rate applies through June 30, 2026; 20% returns July 1.
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.
Despite Washington's new 9.9% income tax, QSBS remains one of the few ways founders and angels can still exit entirely free of state tax. Here's why Section 1202 still works in Washington.
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.