Estate tax

AN ACT Relating to making the estate tax more progressive; 1
amending RCW 83.100.040; reenacting and amending RCW 83.100.020; 2
creating new sections; and declaring an emergency. 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) The "applicable exclusion amount" for the decedent's 9
estate is the applicable exclusion amount in effect as of the date of 10
the decedent's death. "Applicable exclusion amount" means:11
(i) ((One million five hundred thousand dollars )) $1,500,000 for 12
decedents dying before January 1, 2006; 13
(ii) ((Two million dollars )) $2,000,000 for estates of decedents 14
dying on or after January 1, 2006, and before January 1, 2014; 15
((and))16
(iii) $2,012,000 for estates of decedents dying on or after 17
January 1, 2014, and before January 1, 2015;18
(iv) $2,054,000 for estates of decedents dying on or after 19
January 1, 2015, and before January 1, 2016;20
H-1395.1
HOUSE BILL 2019
State of Washington 69th Legislature 2025 Regular Session
By Representatives Street, Walen, Ormsby, Macri, Pollet, Ramel, and
Scott
Read first time 02/24/25. Referred to Committee on Finance.
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(v) $2,079,000 for estates of decedents dying on or after January 1
1, 2016, but before January 1, 2017;2
(vi) $2,129,000 for estates of decedents dying on or after 3
January 1, 2017, but before January 1, 2018;4
(vii) $2,193,000 for estates of decedents dying on or after 5
January 1, 2018, but before January 1, 2025;6
(viii) $3,000,000 for estates of decedents dying on or after 7
January 1, 2025, but before January 1, 2026; and8
(ix) For estates of decedents dying in calendar year ((2014)) 9
2026 and each calendar year thereafter, the amount in (a)(((ii))) 10
(viii) of this subsection must be adjusted annually, except as 11
otherwise provided in this subsection (1)(a)(((iii))) (ix). The 12
annual adjustment is determined by multiplying ((two million 13
dollars)) $3,000,000 by the sum of one plus the percentage by which 14
the most recent October consumer price index exceeds the consumer 15
price index for October ((2012)) 2025, and rounding the result to the 16
nearest ((one thousand dollars )) $1,000. No adjustment is made for a 17
calendar year if the adjustment would result in the same or a lesser 18
applicable exclusion amount than the applicable exclusion amount for 19
the immediately preceding calendar year. ((The applicable exclusion 20
amount under this subsection (1)(a)(iii) for the decedent's estate is 21
the applicable exclusion amount in effect as of the date of the 22
decedent's death.))23
(b) For purposes of this subsection (1), "consumer price index" 24
means the consumer price index for all urban consumers, all items, 25
for the Seattle ((-Tacoma-Bremerton)) metropolitan area as calculated 26
by the United States bureau of labor statistics. For the purposes of 27
this subsection (1)(b), "Seattle metropolitan area" means the 28
geographic area sample that includes Seattle and surrounding areas.29
(2) "Decedent" means a deceased individual. 30
(3) "Department" means the department of revenue, the director of 31
that department, or any employee of the department exercising 32
authority lawfully delegated to him or her by the director.33
(4) "Federal return" means any tax return required by chapter 11 34
of the internal revenue code. 35
(5) "Federal tax" means a tax under chapter 11 of the internal 36
revenue code. 37
(6) "Federal taxable estate" means the taxable estate as 38
determined under chapter 11 of the internal revenue code without 39
regard to: (a) The termination of the federal estate tax under 40
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section 2210 of the internal revenue code or any other provision of 1
law, and (b) the deduction for state estate, inheritance, legacy, or 2
succession taxes allowable under section 2058 of the internal revenue 3
code. 4
(7) "Gross estate" means "gross estate" as defined and used in 5
section 2031 of the internal revenue code. 6
(8) "Internal revenue code" means the United States internal 7
revenue code of 1986, as amended or renumbered as of January 1, 2005.8
(9) "Person" means any individual, estate, trust, receiver, 9
cooperative association, club, corporation, company, firm, 10
partnership, joint venture, syndicate, or other entity and, to the 11
extent permitted by law, any federal, state, or other governmental 12
unit or subdivision or agency, department, or instrumentality 13
thereof. 14
(10) "Person required to file the federal return" means any 15
person required to file a return required by chapter 11 of the 16
internal revenue code, such as the personal representative of an 17
estate. 18
(11) "Property" means property included in the gross estate.19
(12) "Resident" means a decedent who was domiciled in Washington 20
at time of death. 21
(13) "Taxpayer" means a person upon whom tax is imposed under 22
this chapter, including an estate or a person liable for tax under 23
RCW 83.100.120. 24
(14) "Transfer" means "transfer" as used in section 2001 of the 25
internal revenue code and includes any shifting upon death of the 26
economic benefit in property or any power or legal privilege 27
incidental to the ownership or enjoyment of property. However, 28
"transfer" does not include a qualified heir disposing of an interest 29
in property qualifying for a deduction under RCW 83.100.046 or 30
ceasing to use the property for farming purposes. 31
(15) "Washington taxable estate" means the federal taxable estate 32
and includes, but is not limited to, the value of any property 33
included in the gross estate under section 2044 of the internal 34
revenue code, regardless of whether the decedent's interest in such 35
property was acquired before May 17, 2005, (a) plus amounts required 36
to be added to the Washington taxable estate under RCW 83.100.047, 37
(b) less: (i) The applicable exclusion amount under subsection (1) of 38
this section ; (ii) the amount of any deduction allowed under RCW 39
83.100.046; (iii) amounts allowed to be deducted from the Washington 40
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taxable estate under RCW 83.100.047; and (iv) the amount of any 1
deduction allowed under RCW 83.100.048. 2
Sec. 2. RCW 83.100.040 and 2013 2nd sp.s. c 2 s 4 are each 3
amended to read as follows: 4
(1) A tax in an amount computed as provided in this section is 5
imposed on every transfer of property located in Washington. For the 6
purposes of this section, any intangible property owned by a resident 7
is located in Washington. 8
(2)(a) ((Except)) (i) For estates of decedents dying before 9
January 1, 2025, except as provided in (b) of this subsection, the 10
amount of tax is the amount provided in the following table:11
12
13
14

If Washington Taxable

The amount of Tax Equals
Of Washington
Taxable Estate Value
Greater than 15 Estate is at least But Less Than Initial Tax Amount Plus Tax Rate %
16 $0 $1,000,000 $0 10.00% $0
17 $1,000,000 $2,000,000 $100,000 14.00% $1,000,000
18 $2,000,000 $3,000,000 $240,000 15.00% $2,000,000
19 $3,000,000 $4,000,000 $390,000 16.00% $3,000,000
20 $4,000,000 $6,000,000 $550,000 18.00% $4,000,000
21 $6,000,000 $7,000,000 $910,000 19.00% $6,000,000
22 $7,000,000 $9,000,000 $1,100,000 19.50% $7,000,000
23 $9,000,000 $1,490,000 20.00% $9,000,000
(ii) For estates of decedents dying on or after January 1, 2025, 24
except as provided in (b) of this subsection, the amount of tax is 25
the amount provided in the following table:26
27
28
29 If Washington Taxable The amount of Tax Equals
Of Washington
Taxable Estate Value
Greater than 30 Estate is at least But Less Than Initial Tax Amount Plus Tax Rate %
31 $0 $1,000,000 $0 16.00% $0
32 $1,000,000 $2,000,000 $160,000 17.00% $1,000,000
33 $2,000,000 $3,000,000 $330,000 20.00% $2,000,000
34 $3,000,000 $4,000,000 $530,000 26.00% $3,000,000
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1 $4,000,000 $6,000,000 $790,000 31.00% $4,000,000
2 $6,000,000 $7,000,000 $1,410,000 35.00% $6,000,000
3 $7,000,000 $9,000,000 $1,760,000 36.00% $7,000,000
4 $9,000,000 $2,480,000 38.00% $9,000,000
(b) If any property in the decedent's estate is located outside 5
of Washington, the amount of tax is the amount determined in (a) of 6
this subsection multiplied by a fraction. The numerator of the 7
fraction is the value of the property located in Washington. The 8
denominator of the fraction is the value of the decedent's gross 9
estate. Property qualifying for a deduction under RCW 83.100.046 must 10
be excluded from the numerator and denominator of the fraction.11
(3) The tax imposed under this section is a stand-alone estate 12
tax that incorporates only those provisions of the internal revenue 13
code as amended or renumbered as of January 1, 2005, that do not 14
conflict with the provisions of this chapter. The tax imposed under 15
this chapter is independent of any federal estate tax obligation and 16
is not affected by termination of the federal estate tax.17
NEW SECTION. Sec. 3. This act applies prospectively as well as 18
retroactively to estates of decedents dying on or after January 1, 19
2025.20
NEW SECTION. Sec. 4. This act does not affect any existing 21
right acquired or liability or obligation incurred under the sections 22
amended or repealed in this act or under any rule or order adopted 23
under those sections, nor does it affect any proceeding instituted 24
under those sections.25
NEW SECTION. Sec. 5. If any provision of this act or its 26
application to any person or circumstance is held invalid, the 27
remainder of the act or the application of the provision to other 28
persons or circumstances is not affected.29
NEW SECTION. Sec. 6. This act is necessary for the immediate 30
preservation of the public peace, health, or safety, or support of 31
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the state government and its existing public institutions, and takes 1
effect immediately. 2
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