Upcoming Changes to Washington State’s Estate Tax – Effective July 1, 2025
By Attorney Lindsey George
Washington State is set to implement several important updates to its estate tax laws starting July 1, 2025. These revisions are intended to streamline the estate planning process for both residents and non-residents who hold property in the state. Here are a few highlights of the changes.
Higher Exemption Threshold
On July 1, 2025, Washington’s estate tax exemption will increase to $3 million per individual. While there is no portability for spouses, the exemption amount is indexed for inflation, so it will increase each January 1st beginning in 2026.
Estates valued below the exemption amount will not be subject to Washington estate tax. Estates exceeding the threshold will be taxed on a graduated scale, with rates ranging from 10% to 35% based on the value of the estate. To illustrate, for estates that exceed the $3 million threshold, only the portion above the exemption will be taxed – and it will be taxed at graduated rates. This means that smaller portions of the estate are taxed at lower rates (starting at 10%), with higher rates (up to 35%) applied only to amounts falling within higher value brackets.
Revised Tax Brackets and Rates
Washington is also adjusting its estate tax brackets, introducing more progressive rates. The updated structure is as follows:
| Amount over Estate Tax Exemption | Rate Through 2025 | Rate After July 1, 2025 |
|---|---|---|
| $0–1 Million | 10% | 10% |
| $1–2 Million | 14% | 15% |
| $2–3 Million | 15% | 17% |
| $3–4 Million | 16% | 19% |
| $4–6 Million | 18% | 23% |
| $6–7 Million | 19% | 26% |
| $7–9 Million | 19.50% | 30% |
| $9 Million + | 20% | 35% |
These new rates aim to place greater tax responsibility on larger estates while offering relief to smaller ones.
Exclusion for Family Residence Passed to a Spouse
A new rule provides an estate tax filing exclusion for qualifying primary residences transferred to a surviving spouse or registered domestic partner. To qualify, the decedent must pass away on or after January 1, 2025. If the decedent’s share of the residence passes to the surviving partner, its value can be excluded from the filing threshold calculation, but only if the remaining estate value, excluding the residence, falls below the $3 million exemption, if so then no estate tax return would be required.
What This Means for Your Estate Plan
With the upcoming changes, individuals and families should consider reviewing their estate plans. The increased exemption and new residence exclusion may significantly reduce estate tax obligations for many households. For other households, the increased exemption would significantly increase estate tax obligations. The impact will vary based on your specific financial and familial situation.
We’re Here to Help
To take full advantage of the new laws and minimize tax exposure, it’s wise to consult with one of our estate planning attorneys who are each well-versed in Washington’s updated tax framework. We are here to help! Please visit www.myattandbell.com for assistance.
Estate Planning & Peace of Mind
Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.
Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing.
From Our Clients
“After relocating to Oregon, my wife and I needed a comprehensive revision of our estate plan. Bryce and his team provided exceptional support throughout this process. Their professionalism, responsiveness to our inquiries, and expeditious completion of the plan were invaluable. Highly recommended.” – Doug D.
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