Washington is no longer a no-income-tax state. A new 9.9% tax on income above a $1 million standard deduction takes effect in 2028 — and for founders, investors, and high earners, the decisions you make before that deadline could save you hundreds of thousands of dollars.
Looking for the free overview first? Read our complete Washington income tax guide — rate, effective date, planning strategies, and the constitutional challenge.
This guide — written by startup and tax attorney Joe Wallin (NYU LL.M. in Taxation, 25+ years advising founders and investors) — covers the planning questions founders, investors, and high earners face before 2028: domicile, QSBS timing, income acceleration into 2026–2027, PTE elections, and related decisions. Whether you're a founder holding QSBS, an executive with a large income event on the horizon, or an advisor counseling Washington clients, it walks through those issues in plain English.
$49.99 — Digital edition with ongoing updates as the law evolves.
Not ready to buy yet? Browse our free Washington State taxes resources first.
Who It's For
- High earners and executives with income over $1 million
- Startup founders and angel investors holding QSBS
- CPAs, financial advisors, and attorneys counseling Washington clients
- Professional athletes and their agents dealing with Washington's new duty-day rules
What's Inside
- How the 9.9% tax works and who it hits
- QSBS gains and how Section 1202 interacts with Washington tax planning
- Domicile planning — what moving out of Washington actually requires
- Cliff planning in 2026 and 2027 — how to accelerate income before the tax kicks in
- The marriage penalty and how it affects joint filers
- The constitutional challenge and what it means for planning today
- Athletes, NIL, and nonresident income — the duty-day rules explained
About the Author
Joe Wallin is a startup and tax attorney with 25+ years of experience advising founders, investors, and executive teams. He holds an LL.M. in Taxation from NYU and works regularly on QSBS planning, equity compensation, and Washington State tax issues.
Related Blog Posts
Explore these in-depth articles on specific planning strategies covered in the guide:
- The Pass-Through Entity Tax Election, Explained — What the PTE election is, why it exists, and how Washington’s version works
- C Corp vs. S Corp vs. LLC Under Washington’s Income Tax — How the new 9.9% tax changes entity choice for founders
- Deferred Compensation and Washington’s Income Tax — What executives need to know about RSUs, options, and deferred comp
- Installment Sales and Structured Exits — How to spread gain and manage the $1M threshold
- Roth Conversions Before 2028 — Why the window is closing for Washington residents
- Tax Loss Harvesting to Manage the $1M Threshold — Using harvested losses to stay below the tax trigger
- Cliff Planning Before Washington’s 2028 Income Tax: Using 2026 and 2027
Ready to Plan Ahead?
The Washington State Tax Planning Guide for High Earners is available on Gumroad as a digital download, with ongoing updates as the law evolves.
$49.99 — Instant digital download.
Have questions about how this applies to your situation? Feel free to book a free introductory call.