A 9.9% tax on income above $1 million could soon deliver $1,330 checks to hundreds of thousands of families in Washington State while forcing the wealthiest residents to pay significantly more in taxes. Lawmakers say the proposal — widely known as the Washington “Robin Hood bill” or millionaires’ tax — could generate $3.5 billion to $4 billion annually if it becomes law.

The legislation already passed the Washington House with a 51–46 vote after more than 24 hours of intense debate, signaling strong political momentum. If the Senate approves the bill, Washington could introduce its first personal income tax on high earners, targeting only residents who earn more than $1 million per year.

Supporters say the policy would rebalance the state’s tax system and provide relief to working families through the Working Families Tax Credit expansion, which could give up to $1,330 in yearly payments to about 460,000 households. Critics, however, argue the plan could violate the Washington State Constitution, setting the stage for potential legal battles. As the debate continues, the proposed Washington millionaires’ tax and $1,330 family checks have become one of the most talked-about tax reforms in the United States in 2026.

Washington millionaires’ tax bill introduces a 9.9% tax on income above $1 million

The proposed Washington millionaires’ tax bill would impose a 9.9% tax only on income exceeding $1 million, not on the entire income amount. Lawmakers designed the structure to ensure that only the wealthiest residents contribute additional tax revenue.

For example, if a taxpayer earns $1.1 million annually, the state would apply the 9.9% tax only to the final $100,000 above the $1 million threshold. The first $1 million of income would remain untaxed under this proposal.

State analysts estimate that roughly 20,000 to 30,000 households in Washington earn more than $1 million each year. That means only about 0.5% of the state’s households would pay the tax.

Even if the legislation becomes law soon, residents would not see immediate changes. Lawmakers plan to start collecting the tax in 2029, based on income earned the year before.

Supporters argue that this targeted tax allows Washington to generate billions in revenue without raising taxes on the vast majority of residents.

$1,330 checks from the Washington working families tax credit expansion

The most widely discussed benefit of the proposal is the $1,330 yearly payments for families in Washington.

Lawmakers plan to use a portion of the projected tax revenue to expand the Working Families Tax Credit, a program that helps low- and moderate-income households. Under the expansion, about 460,000 families could qualify for the credit.

Depending on income levels and family size, eligible households could receive rebates worth up to $1,330 per year.

Officials say the payments would help families cope with rising living costs. Housing, childcare, groceries, and healthcare expenses have climbed sharply across Washington in recent years.

The legislation also proposes several additional tax relief measures for everyday necessities. The state could eliminate sales taxes on diapers, over-the-counter medications, and personal hygiene products.

These changes aim to reduce everyday expenses while directing the new tax burden toward the highest-income residents.

Washington lawmakers say the millionaires’ tax could raise $4 billion annually

Supporters believe the Washington millionaires’ tax could dramatically strengthen the state’s budget.

Economic projections suggest the tax could generate between $3.5 billion and $4 billion every year once it takes effect. Lawmakers want to use that revenue to support essential public services and reduce reliance on other taxes.

Washington currently relies heavily on sales taxes and business taxes, which critics say place a larger burden on working-class residents than on wealthy households.

By asking high-income earners to contribute more, lawmakers hope to fund major priorities, including:

• Public K-12 education programs
• Healthcare services and human assistance programs
• Higher education funding
• Expansion of the Working Families Tax Credit

Supporters say the proposal represents a step toward a more balanced tax system in Washington.

Legal challenges to the Washington millionaires’ tax bill could follow

Despite strong support among some lawmakers, the Washington Robin Hood tax plan faces intense political and legal scrutiny.

Several Republican legislators argue the proposal conflicts with the Washington State Constitution, which historically treats income as a form of property. Under that interpretation, property taxes must remain uniform across taxpayers, meaning lawmakers cannot apply different tax rates based on income levels.

Because the new proposal specifically targets people earning over $1 million, critics say courts could strike down the policy if it becomes law.

Washington has long resisted implementing a statewide income tax partly because of these constitutional concerns. Previous attempts to create similar taxes have faced legal obstacles in the past.

Washington could become the first no-income-tax state to tax millionaires

Washington currently sits on a short list of nine US states without a personal income tax. The others include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.

If lawmakers approve the Washington millionaires’ tax bill, the state could become the first among these states to adopt a targeted income tax for high earners.

Meanwhile, other states are moving in the opposite direction. Some governments are cutting taxes to attract businesses and residents. For example, Louisiana recently proposed eliminating income tax on the first $25,000 of income.

These contrasting approaches highlight the broader national debate over how states should fund public services while maintaining competitive tax policies.

The Washington Robin Hood bill and millionaires’ tax proposal now moves to the state Senate, where lawmakers will decide whether to approve the measure.

If the Senate passes the bill and the governor signs it into law, Washington could eventually collect billions in revenue from the tax on million-dollar incomes.

That revenue would help fund the expanded Working Families Tax Credit, potentially delivering $1,330 yearly checks to nearly half a million households across the state.

However, legal challenges remain likely, and the courts may ultimately decide whether the tax can stand.

For now, the proposal has sparked a national conversation about wealth taxation, direct payments to families, and the future of state tax policy in the United States.

FAQs:

1. Who qualifies for the $1,330 checks under the Washington millionaires’ tax bill?

The proposed Washington $1,330 checks would go to families eligible for the expanded Working Families Tax Credit. Lawmakers estimate about 460,000 low- and moderate-income households could qualify. The payments aim to offset rising living costs and would be funded by revenue from the 9.9% millionaires’ tax on income above $1 million.

2. When could families receive the $1,330 payments from the Washington Robin Hood tax plan?

Families would not receive the $1,330 payments immediately because the tax would likely start in 2029, based on income from the previous year. Once the tax begins generating revenue, the state plans to distribute funds through the Working Families Tax Credit expansion, providing yearly rebates to qualifying households.