Read All About It: The Latest on the Washington State Estate Tax Exemption Amount

You may have heard about the upcoming changes to the Washington State filing threshold, estate tax exclusion amount and estate tax rates.  Before we delve into the changes, a brief history…

Washington residents received welcome news that the filing threshold and estate tax exclusion amount for deaths occurring on or after July 1, 2025, was increased to $3,000,000, after remaining at $2,193,000 since 2018, with a tax rate that ranges from 10% to 20%.

Residents received even greater news that for deaths occurring on or after January 1, 2026, the filing threshold and estate tax exclusion amount will be $3,076,000.  However, this increase in the exclusion amount came with a tax rate increase, with rates between 10% to 35%.

Senate Bill 6347, which was signed into law in March 2026, makes more changes to the estate tax threshold, exclusion amount, and the estate tax rate.  For deaths occurring on or after July 1, 2026, the Washington estate tax filing threshold and exclusion amount will be $3,000,000, with a tax rate that ranges from 10% to 20%.  According to the Washington Department of Revenue, this $3,000,000 filing threshold and exclusion amount is not set to increase going forward due to an expired CPI in the statute.

The Washington Department of Revenue publishes tables showing the applicable filing thresholds, exclusion amounts, and Washington estate tax computation (Estate tax tables | Washington Department of Revenue).

Since Washington’s estate tax exclusion amount remains significantly lower than the federal estate tax exemption, Washington residents with estates near or above the state filing threshold should consider reviewing their estate plans. Planning opportunities may include credit shelter trust planning, lifetime gifting strategies, charitable planning, and liquidity planning for estates with closely held business or real estate assets.

If you have any questions regarding estate planning,

Please contact Davies Law Office at 425.440.3494 or office@dlolawgroup.com