Washington Millionaire Tax: What It Means for Investors Nationwide

Real Estate News: Real Estate Investing Podcast

Kathy Fettke / RealWealth

Business, Investing

4.5 • 546 Ratings

🗓️ 6 April 2026

⏱️ 4 minutes

🔗️ Recording | iTunes | RSS

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Summary

Washington State has passed a new millionaire tax, and it could have major implications for real estate investors across the country. In this episode of Real Estate News for Investors, Kathy Fettke breaks down the new 9.9% tax on income over $1 million, why it's already facing legal challenges, and how it could influence investor behavior.

But that's not all. Washington lawmakers also approved a sweeping package of housing bills designed to increase supply. From allowing more housing in commercial zones to making it easier to build accessory dwelling units, these changes could reshape the state's housing market.

Will higher taxes push investors to other states? Could loosening zoning laws help solve the housing shortage? And will other states follow Washington's lead?

Tune in as Kathy explains what this means for your portfolio, your strategy, and the future of real estate investing.

Source: https://www.realtor.com/news/real-estate-news/washington-state-millionaire-tax/

Transcript

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0:00.0	Washington state just passed a major new tax on high income earners, and it could have a ripple effect for real estate investors in other states.
0:09.2	I'm Kathy Fedke, and this is real estate news for investors.
0:15.0	This is Real Estate News with Kathy Fedke.
0:19.6	According to Realtor.com, Washington's governor, Bob Ferguson, has signed a new
0:25.0	law that includes a 9.9% tax on income over $1 million. The tax won't take effect until
0:32.6	2008, but the legal fight is already beginning. State leaders say about 21,000 households will be impacted,
0:40.9	and the tax could generate around $3 billion per year. That money is expected to fund programs
0:46.6	like tax credits for working families, child care, and education. Supporters say the goal is to make
0:53.2	the tax system more fair, arguing that wealthier
0:56.4	households currently pay a lower share compared to others. But critics strongly disagree. Republican lawmakers
1:04.2	are calling it a dark day for the state, and a legal challenge is already being prepared.
1:09.5	A group called the Citizen Action Defense Fund plans to file a lawsuit, with former Attorney General Rob McKenna expected to lead that effort. And this isn't just about taxes. Washington also passed seven new housing laws aimed at increasing supply. One key bill allows more housing to be built in commercial areas,
1:29.3	following a growing trend across the country to loosen zoning rules.
1:34.3	Other laws make it easier to build accessory dwelling units, also known as ADUs,
1:38.3	and support the development of affordable and transitional housing.
1:42.3	The state is also trying to speed up
1:45.2	permitting, meaning faster approvals and fewer delays for builders. Local governments will
1:50.8	have more flexibility in how they use housing funds. There's also a change for landlords.
1:55.6	They'll now be required to disclose flood risk to tenants. So what does this all mean for investors? Well, on the one hand,
2:03.0	more housing supply could help ease the shortage and stabilize prices over time. On the other hand,
2:09.4	higher taxes, especially on high income earners, could push some investors to look to other states.
2:16.0	We've already seen similar patterns in places like California,
	...

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