Washington estate tax
The federal estate tax starts at $15 million per person. Washington's starts at $3 million - and it no longer adjusts for inflation. Between those two lines sits twelve million dollars the federal government ignores completely and Washington taxes in full, at 10% climbing to 20%.
Life insurance. If you own the policy, the death benefit counts toward your taxable estate - even though your family receives it income-tax-free. A $1,000,000 policy adds $1,000,000 to what Washington measures. It is also one of the more straightforward things to restructure.
Figures current as of August 4, 2026 and subject to change. Washington's exemption is not portable between spouses; the federal exemption is. Educational information only - not tax or legal advice.
The Washington estate tax return is due nine months after the date of death. An extension of time to file does not grant additional time to pay, and any amount that remains unpaid after the nine-month due date accrues daily interest. If most of the estate is a business nobody can sell quickly, your family has three options - and two of them cost real money.
Filing and payment deadlines per the Washington Department of Revenue, as of 8/4/26.
This is a liquidity problem before it is a tax problem - the same concentration risk we cover in Beyond the Business.
The shape is the same everywhere: a state threshold sitting far below the federal one. These five draw it at or below Washington's.
| State | Exemption | Top rate |
|---|---|---|
| Washington | $3,000,000 | 20% |
| Minnesota | $3,000,000 | 16% |
| Massachusetts | $2,000,000 | 16% |
| Rhode Island | ~$1,802,431 | 16% |
| Oregon | $1,000,000 | 16% |
Seven more states and the District of Columbia tax estates at higher thresholds, from Illinois at $4 million up to Connecticut, which follows the federal line.
Washington taxes the Washington property of non-residents - a cabin on Hood Canal, a rental in Kitsap, raw land held for years. It runs the other direction too: if you live in Washington and own property in a state with its own estate tax, that state may want its share. Property follows the state, not you. Moving changes your residency; it doesn't move your land.
Exemption amounts as of August 4, 2026. Figures marked with ~ are indexed and move each January. Confirm current amounts with the relevant state revenue department before relying on them. Rates shown are top marginal rates, not effective rates.
What this means
Everything above is exposure, not destiny. With the right structures started early enough, a meaningful portion of it can be reduced. The business owners who keep the most are the ones who started years before they needed to.
Start early enoughNo paperwork. No commitment.
This graphic is for illustrative purposes only and should not be considered as specific tax advice. You should consult a legal or tax professional regarding your individual situation.
These are the figures the Department of Revenue publishes and the ones an estate is actually assessed on. We reproduce them here rather than summarising them, so what you read is what the state says.
The tables below apply to the Washington taxable estate - what is left after all allowable deductions, including the applicable exclusion amount. That is not the same as the total value of an estate. An estate of $6,000,000 with a $3,000,000 exclusion has a taxable estate of $3,000,000, and the rates below apply to that figure.
An estate must file if the gross estate exceeds the filing threshold for the date of death.
| Date death occurred | Filing threshold | Applicable exclusion amount |
|---|---|---|
| 2027 and after | $3,000,000 | $3,000,000 |
| 7/1/2026 to 12/31/2026 Current | $3,000,000 | $3,000,000 |
| 1/1/2026 to 6/30/2026 | $3,076,000 | $3,076,000 |
| 7/1/2025 to 12/31/2025 | $3,000,000 | $3,000,000 |
| 1/1/2018 to 6/30/2025 | $2,193,000 | $2,193,000 |
The filing threshold amount is based on the gross estate, not the net estate.
Source: Washington Dept of Revenue, Estate Tax Tables, as of 8/4/26
For dates of death Jan. 1, 2014 to June 30, 2025 and July 1, 2026 and after In effect now
| Taxable amount | Rate | Tax owed |
|---|---|---|
| $0 to $1,000,000 | 10.0% | 10% of taxable amount |
| $1,000,000 to $2,000,000 | 14.0% | $100,000 plus 14% of the amount over $1,000,000 |
| $2,000,000 to $3,000,000 | 15.0% | $240,000 plus 15% of the amount over $2,000,000 |
| $3,000,000 to $4,000,000 | 16.0% | $390,000 plus 16% of the amount over $3,000,000 |
| $4,000,000 to $6,000,000 | 18.0% | $550,000 plus 18% of the amount over $4,000,000 |
| $6,000,000 to $7,000,000 | 19.0% | $910,000 plus 19% of the amount over $6,000,000 |
| $7,000,000 to $9,000,000 | 19.5% | $1,100,000 plus 19.5% of the amount over $7,000,000 |
| $9,000,000 and up | 20.0% | $1,490,000 plus 20% of the amount over $9,000,000 |
Taxable amount - Line 7 under Part 2 of the Estate Tax Return.
Source: Washington Dept of Revenue, Estate Tax Tables, as of 8/4/26
For dates of death July 1, 2025 to June 30, 2026 Superseded
| Taxable amount | Rate | Tax owed |
|---|---|---|
| $0 to $1,000,000 | 10% | 10% of taxable amount |
| $1,000,000 to $2,000,000 | 15% | $100,000 plus 15% of the amount over $1,000,000 |
| $2,000,000 to $3,000,000 | 17% | $250,000 plus 17% of the amount over $2,000,000 |
| $3,000,000 to $4,000,000 | 19% | $420,000 plus 19% of the amount over $3,000,000 |
| $4,000,000 to $6,000,000 | 23% | $610,000 plus 23% of the amount over $4,000,000 |
| $6,000,000 to $7,000,000 | 26% | $1,070,000 plus 26% of the amount over $6,000,000 |
| $7,000,000 to $9,000,000 | 30% | $1,330,000 plus 30% of the amount over $7,000,000 |
| $9,000,000 and up | 35% | $1,930,000 plus 35% of the amount over $9,000,000 |
Taxable amount - Line 7 under Part 2 of the Estate Tax Return. This schedule applies only to deaths in that twelve-month window; rates returned to the schedule above on July 1, 2026.
Source: Washington Dept of Revenue, Estate Tax Tables, as of 8/4/26
A deduction aimed squarely at business owners.
Washington allows a deduction for qualified family-owned business interests, which can reduce the taxable estate for families whose wealth sits in a company they built. Eligibility is conditional - it turns on ownership, the size of the estate, how involved the family has been in the business, and how long the interest is held afterwards. It is not something to assume applies. It is worth asking an estate attorney about early, because the conditions are easier to meet by design than by accident.
Maximum deduction
| Date death occurred | Maximum deduction |
|---|---|
| 2027 and after | $3,076,000 |
| 2026 Current | $3,076,000 |
| 7/1/2025 to 12/31/2025 | $3,000,000 |
| 1/1/2014 to 6/30/2025 | $2,500,000 |
How to qualify
| Requirement | Threshold |
|---|---|
| Value of the business interests | Not more than $6,000,000 |
| Share of the taxable estate | More than 50% |
| Family ownership of the entity | At least 50% |
| Owned by the family before death | 5 of the prior 8 years |
| Family materially participated | 5 of the prior 8 years |
| Passes to a qualified heir | Required |
| Heir continues the business | 3 years after death |
The 2026 maximum deduction is not set to increase going forward, due to an expired inflation reference in the statute. A qualified heir is a spouse, lineal descendant, parent, or the spouse of a lineal descendant. If the three-year requirement is not met, an additional tax equal to the deduction's tax savings is imposed on the heir personally.
Source: Washington Dept of Revenue, Estate Tax Tables, and RCW 83.100.048, as of 8/4/26
Reproduced from the Washington Department of Revenue for reference. Rates and thresholds change; confirm current figures with the Department before relying on them. Educational information only - not tax or legal advice. Walters Wealth Management does not provide tax preparation or legal services.