Initiative Measure No. IP26-645 concerns state and local taxes.
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WA publishes no official "a YES vote means" text; yes_means/no_means null. Attorney General explanatory statement provided in explanatory_statement.
rebuttal_pro = rebuttal of the argument FOR (written by opponents); rebuttal_con = rebuttal of the argument AGAINST (written by proponents).
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Initiative Measure No. IP26-645 concerns state and local taxes. This measure would repeal a 9.9% tax on annual individual income over $1,000,000; prohibit taxes measured by individual income and taxes on individual income or the receipt of individual income; and define “income.” This measure would decrease funding for public K-12 education, higher education (including universities and community colleges), and human services (primarily healthcare). Should this measure be enacted into law?
Not published by the state
Not published by the state
The Law As It Presently Exists The State of Washington imposes various taxes to raise revenue to fund state government. Those taxes include the retail sales tax, the business and occupation tax, the state property tax, the capital gains tax, and other state taxes. In 2026, the Legislature passed a law imposing a 9.9 percent tax on an individual’s receipt of income over $1,000,000, beginning in calendar year 2028. Beginning in 2029, the $1,000,000 standard deduction is increased to account for inflation. The amount of income subject to tax is based on adjusted gross income reported on federal income tax returns, with some modifications. In addition to the $1,000,000 standard deduction, taxpayers may deduct up to $100,000 for charitable contributions. The $1,000,000 standard deduction and the possible $100,000 deduction for charitable contributions apply per household, so a married couple or domestic partnership shares a single $1,000,000 deduction and up to $100,000 for charitable contributions. Additional deductions are available for certain specific situations. Certain expenses related to pass-through entities that are deducted for federal tax purposes are added to the amount subject to Washington’s tax. The law also allows certain tax credits, which lower the amount of taxes due. These credits are available for income tax paid to another state; amounts paid under Washington’s capital gains tax; and taxes owed for business and occupation taxes or public utility taxes paid on the same income subject to this tax. Nonresidents of Washington are only subject to this tax based on income derived from sources within Washington. Income that they earn from other sources is not counted. Five percent of the money collected from this tax is deposited into an account that can only be used for childcare and early learning purposes. The remaining 95 percent of money collected from the tax and any interest and penalties is deposited into the state’s general fund. The 2026 law enacting the tax on income above $1,000,000 also enacted or expanded various tax exemptions, deductions and credits. First, it eliminated sales tax on the sale of diapers, over-the-counter drugs, grooming and hygiene products, and certain software, digital services, data processing, and live presentations. Second, it reduced business and occupation taxes by increasing a small-business tax credit, increasing the minimum threshold for businesses to file taxes, and removing a surcharge on high grossing businesses for health care providers, hospitals, prescription drug resellers, and wholesale food sales. Third, it expanded eligibility for the Working Families Tax Credit, which provides a tax refund for qualifying low-income individuals. The Effect of the Proposed Measure if Approved If approved, the proposed measure would repeal the annual tax on individual income over $1,000,000. This would also eliminate the funding collected from the tax that would go to the general fund (which funds public K-12 education, higher education such as universities and community colleges, health care, and other human services) and childcare and early learning. The nonincome tax credits, exemptions, and deductions that accompanied this tax would not be repealed and would remain in place. The measure would also prohibit state and local governments from imposing taxes on individual income or the receipt of individual income and taxes measured by an individual’s income. The only tax explicitly listed and repealed by the measure is the tax on income over $1,000,000. The measure would also provide definitions for some terms used in the measure. It would define “income” for purposes of excise taxes as “any gain or benefit measured in money derived from an individual’s capital, labor, property, or other source.” It would define “individual” for purposes of excise taxes as “a natural person.”
If approved by voters, Initiative Measure No. IP26-645 will result in an estimated loss to state revenue of $11.4 billion over state fiscal years 2027-2031. This would reduce funding to the state general fund to support core government services, particularly public K-12 education, higher education (including universities and community colleges), and human services (primarily healthcare). The Legislature expressed an intent to use the additional revenue created by Engrossed Substitute Senate Bill 6346 (2026) (ESSB 6346) towards providing free school meals, transferring funds for childcare and early learning, and transferring funds to local governments to mitigate sales tax loss.
Vote Yes: Repeal the Income Tax, Make Olympia Keep Its Word Trust isn’t built by passing another tax, it’s earned by keeping promises. Over the last 90 years, Washingtonians have rejected an income tax ten times because they knew it would threaten economic growth, discourage investment, and reach beyond the people originally targeted. This year, the Legislature enacted a new income tax anyway. I-645 restores your right to decide. Taxes Always Expand Supporters insist the tax is narrow, applying only to income above $1 million. But lawmakers rejected opportunities to permanently limit its reach, giving Olympia the ability to expand the income tax to everyone. Before asking taxpayers for more, they should demonstrate they can keep the commitments they’ve already made. A History of Broken Promises 80 times in the last five years Olympia has moved money from dedicated accounts to the general fund. They’ve taken money from state healthcare, flood control, pipeline safety, school employees’ insurance, and others to backfill the general fund. The capital gains tax was promised to support early learning and childcare, yet those commitments were delayed, reduced, or cancelled. First responders spent careers relying on promises about their retirements, only to watch the legislature raid their pensions to plug holes in the general fund. Trust erodes when dedicated funding doesn’t produce the results people were promised. Voting Yes repeals the new income tax before it begins, preserves the Working Families Tax Credit, paid family leave, and small-business tax relief. Voters have the final say.
Chris Gildon, State Senator, Republican, Puyallup; Jesse Proudman, Lifelong Washingtonian and Three-Time Entrepreneur; Patti Mann, Retired Firefighter/Paramedic, Seattle Fire Department; Viet Nguyen, Small Business Owner, Independent, Seattle; Semmelle Abraham, Small Business Owner; Julie H. Olds, Grandmother and Small Business Owner | Contact: (360) 259-9771; chris@chrisgildon.com
Janie White, President, Washington Education Association; Matt Hipp, Small Business Owner, Halcyon Brewing Company; Rosa Potts, Registered Nurse, Vancouver; April Sims, President, Washington State Labor Council; Thom Garrard, Retired classroom teacher, Edmonds School Board Member; Lindsay Johnson, Planned Parenthood Advocates of Greater Washington, Yakima | Contact: (360) 545-3362; info@no645.com; https://no645.com/
Washington has one of the nation’s most upside-down tax systems, where working and middle class families pay a far higher tax rate than the wealthiest. I-645 would make that worse. I-645 is fiscally irresponsible, slashing billions in funding for education and healthcare, increasing taxes on 460,000 hard-working families, and jeopardizing tax cuts for thousands of small businesses. Vote No: Stop a Tax Break for the Wealthiest Hedge fund mogul Brian Heywood has spent millions backing I-645 because he wants a tax cut for the top 1%, while sticking working and middle class families and small businesses with higher costs. I-645 could mean higher taxes for thousands of small businesses, force families to pay sales tax for basic household items like diapers, and raise taxes for 460,000 Washington families – just so those making over a million dollars in a year get a tax break. Vote No: Stop Cuts to Schools, Healthcare, and Childcare This measure cuts funding for K-12 public schools, healthcare, childcare, and other important public services by $13 billion over four years. That means larger class sizes, higher costs for healthcare and childcare, and the elimination of free school lunches for many children. Vote No: Stop Higher Costs for Working Families I-645 gives the wealthiest a big break while the rest of us face higher healthcare and childcare costs and cuts to public schools and higher education. Join Washington nurses, teachers, and small business owners. Vote No on I-645.
Janie White, President, Washington Education Association; Matt Hipp, Small Business Owner, Halcyon Brewing Company; Rosa Potts, Registered Nurse, Vancouver; April Sims, President, Washington State Labor Council; Thom Garrard, Retired classroom teacher, Edmonds School Board Member; Lindsay Johnson, Planned Parenthood Advocates of Greater Washington, Yakima | Contact: (360) 545-3362; info@no645.com; https://no645.com/
Chris Gildon, State Senator, Republican, Puyallup; Jesse Proudman, Lifelong Washingtonian and Three-Time Entrepreneur; Patti Mann, Retired Firefighter/Paramedic, Seattle Fire Department; Viet Nguyen, Small Business Owner, Independent, Seattle; Semmelle Abraham, Small Business Owner; Julie H. Olds, Grandmother and Small Business Owner | Contact: (360) 259-9771; chris@chrisgildon.com
Both columns use the same layout. Text is quoted from the official state guide. Views expressed belong to the argument authors.