The tax is intended to fund the expansion and affordability of childcare, early learning and public education.

The information below is accurate as of April 2021. More information will be provided as it becomes available.

The Basics

  • The 7% tax will apply to gains over $250,000 for both individuals and joint filers

    • For example, a filer with a reportable long-term capital gain of $300,000 would report Washington capital gains of $50,000

    • The bill includes a charitable donation deduction for those donating $250,000 or more to nonprofit organizations in that year

  • Real estate, retirement accounts, agriculture, livestock and qualified family-owned small businesses are exempt

    • Business owners will be exempt from the tax if they have been running the business for at least 5 of the last 10 years before selling, have owned the business for at least 5 years, and have revenue of $10 million or less in the year before the sale

  • Revenue from this tax will go into the Education Legacy Trust and Common School Construction Account, to be used to fund K-12 education, early learning and childcare