Estate tax exclusion

AN ACT Relating to adjusting the estate tax exclusion amount for 1
inflation; reenacting and amending RCW 83.100.020; creating a new 2
section; and providing an effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 83.100.020 and 2013 2nd sp.s. c 2 s 2 are each 5
reenacted and amended to read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1)(a) "Applicable exclusion amount" means: 9
(i) ((One million five hundred thousand dollars )) $1,500,000 for 10
decedents dying before January 1, 2006; 11
(ii) ((Two million dollars )) $2,000,000 for estates of decedents 12
dying on or after January 1, 2006, and before January 1, 2014; 13
((and))14
(iii) $2,012,000 for estates of decedents dying on or after 15
January 1, 2014, and before January 1, 2015;16
(iv) $2,054,000 for estates of decedents dying on or after 17
January 1, 2015, and before January 1, 2016;18
(v) $2,079,000 for estates of decedents dying on or after October 19
1, 2016, but before October 22, 2016;20
H-0120.3
HOUSE BILL 1375
State of Washington 69th Legislature 2025 Regular Session
By Representatives Orcutt, Klicker, Couture, Jacobsen, Ley, Ryu,
Schmick, and Barkis
Read first time 01/17/25. Referred to Committee on Finance.
p. 1 HB 1375
(vi) $2,129,000 for estates of decedents dying on or after 1
October 22, 2016, but before January 1, 2018;2
(vii) $2,193,000 for estates of decedents dying on or after 3
January 1, 2018, but before August 1, 2025;4
(viii) $2,959,000 for estates for decedents dying on or after 5
August 1, 2025; and6
(ix) For estates of decedents dying in calendar year ((2014)) 7
2026 and each calendar year thereafter, the amount in (a)(((ii))) 8
(viii) of this subsection must be adjusted annually, except as 9
otherwise provided in this subsection (1)(a)(((iii))) (ix). The 10
annual adjustment is determined by multiplying ((two million 11
dollars)) $2,959,000 by the sum of one plus the percentage by which 12
the most recent October consumer price index exceeds the consumer 13
price index for October ((2012)) 2024, and rounding the result to the 14
nearest ((one thousand dollars )) $1,000. No adjustment is made for a 15
calendar year if the adjustment would result in the same or a lesser 16
applicable exclusion amount than the applicable exclusion amount for 17
the immediately preceding calendar year. The applicable exclusion 18
amount under this subsection (1)(a)(((iii))) (ix) for the decedent's 19
estate is the applicable exclusion amount in effect as of the date of 20
the decedent's death. 21
(b) For purposes of this subsection (1), "consumer price index" 22
means the consumer price index for all urban consumers, all items, 23
for the Seattle ((-Tacoma-Bremerton metropolitan )) area as calculated 24
by the United States bureau of labor statistics. For the purposes of 25
this subsection (1)(b), "Seattle area" means the geographic area 26
sample that includes Seattle.27
(2) "Decedent" means a deceased individual. 28
(3) "Department" means the department of revenue, the director of 29
that department, or any employee of the department exercising 30
authority lawfully delegated to him or her by the director.31
(4) "Federal return" means any tax return required by chapter 11 32
of the internal revenue code. 33
(5) "Federal tax" means a tax under chapter 11 of the internal 34
revenue code. 35
(6) "Federal taxable estate" means the taxable estate as 36
determined under chapter 11 of the internal revenue code without 37
regard to: (a) The termination of the federal estate tax under 38
section 2210 of the internal revenue code or any other provision of 39
law, and (b) the deduction for state estate, inheritance, legacy, or 40
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succession taxes allowable under section 2058 of the internal revenue 1
code. 2
(7) "Gross estate" means "gross estate" as defined and used in 3
section 2031 of the internal revenue code. 4
(8) "Internal revenue code" means the United States internal 5
revenue code of 1986, as amended or renumbered as of January 1, 2005.6
(9) "Person" means any individual, estate, trust, receiver, 7
cooperative association, club, corporation, company, firm, 8
partnership, joint venture, syndicate, or other entity and, to the 9
extent permitted by law, any federal, state, or other governmental 10
unit or subdivision or agency, department, or instrumentality 11
thereof. 12
(10) "Person required to file the federal return" means any 13
person required to file a return required by chapter 11 of the 14
internal revenue code, such as the personal representative of an 15
estate. 16
(11) "Property" means property included in the gross estate.17
(12) "Resident" means a decedent who was domiciled in Washington 18
at time of death. 19
(13) "Taxpayer" means a person upon whom tax is imposed under 20
this chapter, including an estate or a person liable for tax under 21
RCW 83.100.120. 22
(14) "Transfer" means "transfer" as used in section 2001 of the 23
internal revenue code and includes any shifting upon death of the 24
economic benefit in property or any power or legal privilege 25
incidental to the ownership or enjoyment of property. However, 26
"transfer" does not include a qualified heir disposing of an interest 27
in property qualifying for a deduction under RCW 83.100.046 or 28
ceasing to use the property for farming purposes. 29
(15) "Washington taxable estate" means the federal taxable estate 30
and includes, but is not limited to, the value of any property 31
included in the gross estate under section 2044 of the internal 32
revenue code, regardless of whether the decedent's interest in such 33
property was acquired before May 17, 2005, (a) plus amounts required 34
to be added to the Washington taxable estate under RCW 83.100.047, 35
(b) less: (i) The applicable exclusion amount under subsection (1) of 36
this section ; (ii) the amount of any deduction allowed under RCW 37
83.100.046; (iii) amounts allowed to be deducted from the Washington 38
taxable estate under RCW 83.100.047; and (iv) the amount of any 39
deduction allowed under RCW 83.100.048. 40
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NEW SECTION. Sec. 2. RCW 82.32.805 and 82.32.808 do not apply 1
to this act.2
NEW SECTION. Sec. 3. This act takes effect August 1, 2025.3
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