Controversial Capital Gains Tax Upheld in Washington

The state’s historic long term capital gains tax is projected to bring in $1 billion over the next two years.

Temple of Justice Olympia Washington for Washington state capital gains tax ruling
(Image credit: Getty Images)

Capital gains tax is back in the news. The Supreme Court in Washington ruled that the state’s 7% capital gains tax which was enacted two years ago, is constitutional. The controversial ruling, which essentially says that capital gains taxes are not property taxes in Washington state, came on the heels of President Biden’s FY24 budget proposal calling for a near doubling of the national capital gains tax rate

Additionally, a recent survey shows that most Seattle voters would support a proposed citywide capital gains tax. If passed, the measure would be similar to the statewide capital gains tax on sales of stocks and bonds over $250,000 in a year.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.