As several states explore new taxes targeting the ultra-wealthy, Washington state lawmakers are moving forward with a proposal that would impose a 9.9% tax on income above $1 million — a dramatic shift for a state that has long promoted itself as having no personal income tax, Forbes reports.

The proposal comes amid a broader national debate.

California is considering a ballot initiative known as the “2026 Billionaire Tax Act,” which would impose a one-time 5% tax on residents with net worth exceeding $1 billion, though the measure still must qualify for the ballot and win voter approval.

Critics warn such policies could accelerate migration by high-income residents to lower-tax states like Florida and Texas.

Starbucks Founder Moves to Florida

Fueling that concern, former Starbucks CEO Howard Schultz recently announced he and his wife are relocating from Washington to Miami, after more than four decades in the state.

Schultz — whose net worth is estimated in the billions — purchased a luxury penthouse in South Florida and is moving his family office there, though his charitable foundation will remain in Seattle.

While Schultz did not directly cite the tax proposal as the reason for the move, the timing — shortly after Washington lawmakers advanced the measure — has intensified debate about whether higher taxes on top earners could push wealthy residents to relocate.

Following more than 24 hours of debate, the Washington State House approved Senate Bill 6346, which would apply a 9.9% tax to personal income above $1 million.

If the Senate concurs and Gov. Bob Ferguson signs the bill into law, the tax would take effect in 2028, with the first payments due in 2029.

The measure would mark a historic shift for Washington, one of the few states that currently does not impose a broad-based personal income tax.

Supporters say the tax would affect only a small share of taxpayers — roughly 0.5% of high-income residents — while generating billions annually for programs including education, health care, housing, and tax credits for working families.

But opponents argue the policy could weaken the state’s tax base if wealthy individuals and business leaders choose to relocate.

A Growing National Debate

The Washington proposal reflects a broader push among some states to tax the wealthy more aggressively. Proposals targeting high earners or large fortunes have surfaced in states including California, Maryland, Minnesota, New Jersey, Rhode Island and Michigan, according to policy analysts.

Supporters say the measures help address inequality and fund public services, while critics warn they risk driving investment and top taxpayers to lower-tax states.

With Washington potentially on the verge of its first tax on high earners — and California weighing a wealth tax targeting billionaires — the outcome of these proposals could reshape the economic competition among states for America’s wealthiest residents.