The Washington State Department of Revenue recently announced the 2026 update for the state estate tax exemption. The 2026 state estate tax exemption was adjusted for inflation and increased to $3,076,000 starting January 1, 2026, up from $3,000,000.
The prior $3,000,000 Washington state estate tax exemption applied from July 1 to December 31, 2025, and was increased in Engrossed Substitute Senate Bill 5813 (“ESSB 5813”) from $2,193,000, which applied from January 1, 2018 to June 30, 2025.
There was uncertainty surrounding whether the inflation adjustment for 2026 would occur. Under RCW 83.100.020(1)(a)(ix), starting in 2026 the state estate tax exemption inflation adjustment should be calculated using the most recent October consumer price index for the Seattle metropolitan area, as calculated by the United States Bureau of Labor Statistics. However, with the federal government shutdown that lasted from October 1 to November 12, 2025, the U.S. Bureau of Labor Statistics did not collect October data, so October’s inflation reports were not released and an October consumer price index for the Seattle metropolitan area could not be calculated. The Department of Revenue announced that it calculated the estate tax inflation adjustment using the August 2025 consumer price index for the Seattle metropolitan area.
The Department of Revenue currently indicates on its website that if the U.S. Bureau of Labor Statistics issues an October consumer price index for the Seattle metropolitan area within the next year, the Department of Revenue will update the 2026 Washington exemption amount accordingly.
This increase to the Washington estate exemption amount to $3,076,000 generally means that estates of individuals who are either domiciled in Washington or own property in Washington and die in 2026 with a Washington taxable estate in excess of $3,076,000 must file a Washington state estate tax return, and Washington state estate tax may be due. With proper estate and tax planning, the Washington state exemption amount for married couples is essentially double the individual exemption, or $6,152,000 under 2026 law.
Below is a list of historical Washington state estate tax exemption amounts:
| Past Washington Estate Tax Exemption Amounts | |
|---|---|
| Year(s) | Exemption |
| 1/1/2018-6/30/2025 | $2,193,000 |
| 7/1/2025-12/31/2025 | $3,000,000 |
| 2026 | $3,076,000 |
The tax rate for assets owned by an individual in excess of the $3,076,000 exemption amount is graduated and ranges from 10% to 35%, which is unchanged from the latter half of 2025. Below is a chart showing the current Washington state estate tax rates:
| Washington Estate Tax Rates | |
|---|---|
| Taxable Amount (in excess of exemption) |
Tax Rate |
| $0 to $1,000,000 | 10% |
| $1,000,000 to $2,000,000 | 15% |
| $2,000,000 to $3,000,000 | 17% |
| $3,000,000 to $4,000,000 | 19% |
| $4,000,000 to $6,000,000 | 23% |
| $6,000,000 to $7,000,000 | 26% |
| $7,000,000 to $9,000,000 | 30% |
| $9,000,000 and up | 35% |
Before the changes made in ESSB 5813 took effect on July 1, 2025, the top state estate tax rate was only 20%. However, attempts are now being made to reverse this increase to the Washington estate tax rates. Senate Bill 6347, introduced in the state Senate on February 4th, would lower the top rate back to 20% for people dying on or after April 1, 2026.
Each person’s specific circumstances will determine whether Washington state estate tax planning is appropriate. If you have any questions about the state estate tax exemption and how it may impact your estate planning, please contact an attorney in our estate planning practice group, including Ryan Montgomery (rmontgomery@montgomerypurdue.com) or Allison Int-Hout (ainthout@montgomerypurdue.com).