WA HB2724

Imposes a 9.9% tax on Washington taxable income exceeding $1,000,000 beginning January 1, 2028, affecting approximately the wealthiest 0.5% of households in the state

Revenue funds K-12 education, health care, higher education, human services, and the working families' tax credit, with 5% allocated to county public defense funding

Provides tax relief including: doubling the small business B&O tax credit (from $55/$160 to $110/$320), raising the B&O filing threshold from $125,000 to $250,000, exempting grooming/hygiene products from sales tax, and expanding the working families' tax credit to include individuals ages 18-24

Excludes long-term capital gains (already taxed under existing WA capital gains tax), real property sales, qualified family-owned small business sales, and federal obligations from the tax base

Allows pass-through entities to elect to pay the tax at the entity level, provides credits for taxes paid to other states and for B&O/public utility taxes paid on the same income