WA HB1560

Imposes a 7.5% excise tax on hospitals for compensation paid to covered employees that exceeds 10 times the state's average annual wage, beginning January 1, 2026 (taxes due in 2027)

Covered employees include the five highest-compensated hospital employees without direct patient responsibilities, plus the lead administrator if not already among the top five

Revenue is intended to fund programs that expand health care access, advance health equity, and increase access to reproductive care

Hospitals may deduct compensation for work performed outside Washington state that is not in furtherance of the hospital's in-state business activities

Applies to all hospitals licensed under chapter 70.41 RCW and is in addition to existing business and occupation taxes under chapter 82.04 RCW