Washington Governor Signs Capital Gains, Working Families Credit

Washington Gov. Jay Inslee signed bills Tuesday to impose a new 7% excise tax on capital gains of more than $250,000 a year and to fund a credit for low-income wage earners.

The Democratic governor signed S.B. 5096, which will apply the capital gains tax to about 8,000 taxpayers starting in 2022 and generate about $500 million a year. Inslee also signed H.B. 1297 to fund a Working Families Tax Credit to provide $300 to $1,200 for low-income wage earners depending on income and family size.

• Gains from real estate, retirement assets, timberlands, and family businesses with less ...