In mid -2025, Washington adjusted its state tax on inheritance for properties created as of July 1, 2025. The new version uses a larger deduction adjusted by inflation of $ 3,000,000 and higher tax rates that begin by 10% and amount quickly to 35%. (For the context, the previous state tax of the State, applicable to the properties of the deceased who died before July 1, 2025, uses a deduction and tax rates of $ 2,193,000 that lasted from 10% to 20%).
To estimate the Washington State Tax that someone could be due under the new rules of Law 2025, use the state tax calculator of the Washington State shown below. The instructions and additional information appear below the input and outputs of the calculator.
Instructions for the state tax calculator of Washington
You must describe a farm using approximately half a dozen tickets. And the three things to know are the following:
First, the state of Washington submits the following articles of its taxable heritage: liabilities, marital transfers, costs of heritage administration, charitable contributions and then a new “standard” exclusion equal to $ 3,000,000 from July 1, 2025 and then a higher amount adjusted to inflation in later years.
Note: There is also a special deduction of commercial property interests qualified and that can amount to another approximately $ 3,000,000. But that deduction is very difficult to use and quite problematic.
Second, if you have real estate outside the State, the formulas are adjusted to this. The state of Washington did not tax its residents in real estate kept out of the State. (Those other states, by the way, could). But as an example, if someone has real estate outside the state of Washington that amounts to 25 percent of the person’s assets? The state of Washington only taxes the remaining 75 percent.
Third, the real fiscal calculation uses a sliding scale that begins by 10 percent and increases to 35 percent.
Some other things to know
Some other useful things to know:
A wrinkle for people who possess real estate inside or outside the state of Washington: the values that enters for that property in the “Washington state assets” and “Washington State assets” must be net of any No resource Debt as mortgages, the deceased is not personally responsible. Use the liabilities to show only the total resource passive.
The results of the calculation must be considered an estimate. They give a good sense of taxes that pay a heritage.
Finally, these generalizations can help. Less properties will need to submit equity tax statements under the new law due to the highest indexed inflation threshold in the future. And the highest fiscal sections of the new law really do not “enter” until someone’s assets reaches $ 10,000,000 if it is single or $ 15,000,000 if it is married. But to the sizes of major goods than these amounts, the new property tax becomes surprisingly large. Affected taxpayers will want to update their heritage and business plans. And many will probably want to consider being relocated outside Washington. (The turning point is probably around $ 30 million of net assets).
Other resources
More information appears and the Washington SB 5813 text here.
To compare the tax of the new bill with the previous one, you can use this previous version of the calculator.
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