In the news: new Washington State tax laws

Individual TaxStrategic PlanningTax PlanningTaxes
Written By Erica Stupfel

You may have seen some headlines recently concerning the new Washington State tax laws. On May 20, Washington State Governor Bob Ferguson signed several bills into law that impact state taxes. We've highlighted the most significant ones impacting individuals and businesses:

Capital gains tax: There is now an additional excise tax of 2.90% on long-term capital gains exceeding $1 million. This is in addition to the 7% tax on capital gains exceeding $270,000 that was enacted in 2022. This new tax is effective retroactive to January 1, 2025. 

Estate tax: Estate tax rates increased with the highest reaching 35% for estates exceeding $9 million. The state estate tax exemption was also increased to $3 million.

Sales tax: Sales tax has been expanded to include service-related businesses. This includes services such as information technology support, security services, temporary staffing, advertising, and more. This new tax will take effect October 1, 2025.

With the Washington State tax landscape changing quickly, it's important to know how these changes affect you or your business. Reach out to Bilotta & Company, CPAs, LLC for help!

Erica Stupfel

e*design Creative Services specializes in making professional design available to small companies and individuals. I understand the importance in brand identity and how a positive visual representation of your product or service can make the difference between success and failure. Your ideas and vision combined with my marketing and design expertise will be a sure success story.

https://www.edesigncreative.com
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