State Estate Tax Law Changes

As many of my clients know, Washington State has its own estate tax regime. Washington State estate tax law recently changed significantly, applicable to dates of death of July 1, 2025 and later.

There were two significant changes to the law. First, the individual exclusion amount is now $3,000,000 per person (to be adjusted for inflation annually). This is good news for many people. The individual exclusion amount had been $2,193,000 per person since 2018.

Second, the tax rates have changed significantly. Previously, the rates started at 10% and reached a maximum of 20%, depending on the size of the estate. Under the new law, the rates still start at 10%, but reach as high as 35%. Essentially, this means the larger estates are now paying more tax than they were under the old law, and the more modest estates are paying less tax than they were under the old law, or even no tax at all.

Estate tax is a complex subject with many variables. This post is intended to merely highlight the major changes, and shouldn’t be considered a substitute for personalized professional guidance.