WA HB1665

Repeals Washington's capital gains income tax (RCW Chapter 82.87) originally enacted in 2021, eliminating the 7% tax on long-term capital gains exceeding $250,000

Removes all associated provisions including exemptions, deductions for family-owned small businesses and charitable donations, filing requirements, and penalties

Effective date of October 1, 2025

Legislative findings state the tax incentivizes out-of-state migration, reduces economic competitiveness, and disproportionately burdens those unable to avoid or mitigate its effects