Washington Enacts Law Amending Capital Gains Tax Prepayment Rules

The Washington Governor signed a law that amends capital gains tax laws to allow taxpayers to prepay their capital gains taxes up to six months before the due date without incurring interest on overpayments. The law also modifies the definition of “federal net long-term capital gain” by excluding certain sections of the Internal Revenue Code from consideration when determining reportable gains. The law takes effect June 11. [H.B. 1376, enacted 03/24/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.