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Washington’s Millionaires Tax & Business Valuation: Exit Planning, Industry Impact & the Relocation Question

March 12, 2026

Three years ago, Washington was one of the most tax-friendly states for business owners. No personal income tax. No capital gains tax (until 2021). A favorable estate tax threshold. The Washington millionaires tax (SB 6346) changes that equation dramatically—and with it, your business valuation. It adds a 9.9% income tax on earnings above $1 million, joining the 7%/9.9% tiered capital gains tax and the nation's highest estate tax rate (35% on estates above $3 million). For business owners planning an exit, evaluating their competitive position, or considering whether to stay,...