The first of its kind income tax for Washington State has been signed into law by Governor Bob Ferguson, creating a 9.9% tax for individuals who make more than $1 million each year. The tax will take effect on Jan. 1, 2028, with first payments due in April 2029. The first $1m of someone's annual income would be deducted, and anything earned after that would be subject to the tax. The new tax also promises to reduce certain sales and use taxes and business and occupation taxes. Opponents, including the Washington State Republican Party, are planning to put a repeal initiative on the ballot to ask voters to repeal the tax entirely. The Citizen Action Defense Fund (CADF) is preparing a lawsuit to challenge the legality of the new tax, arguing that it violates the state constitution's definition of income as property.