Washington State Estate Tax – New Legislation
Effective July 1, 2025
The following bullets summarize the estate tax changes in the State of Washington according to the Washington Department of Revenue.
- Applicable exclusion amount changes to $3,000,000.
- CPI calculation for the exclusion amount changes to the Seattle municipal area.
- Tax rates range changes to 10% to 35%.
- Maximum allowable QFOBI deduction changes to $3,000,000.
- The maximum allowable QFOBI deduction includes a CPI calculation.
- Nonfamilial heir’s use of tangible personal property may be included in the farm deduction.
These law changes will affect estates required to file returns nine months after July 1, 2025. Therefore, an estate tax return, due on or after April 1, 2026 (not including extensions), will be required to follow these law changes.
The following changes are for estates with decedents passing away on or after July 1, 2025. For estates of decedents with dates of death prior to July 1, 2025, even when filed after July 1, must follow the laws in effect before the above changes.
State of Washington Applicable Exclusion Amount
The applicable exclusion amount is based on the date of death of the decedent.
| For decedents with dates of death occurring in | Applicable exclusion amount is |
| January 1, 2018 through June 30, 2025 | $2,193,000 |
| July 1, 2025 through December 31, 2025 | $3,000,000 |
| January 1, 2026 through December 31, 2026 | $3,000,000 or more** |
** Beginning with dates of death in 2026 and after, the applicable exclusion amount may increase yearly, based on a Seattle area, October consumer price index calculation.
Washington State Department of Revenue: Tax Exclusion Amount Table
Filing Threshold
“The new law changes the exclusion amount, which affects the filing threshold. For decedents dying between July 1, 2025 through December 31, 2025, the total gross estate must meet or exceed $3,000,000 for a required return filing. For estates with dates of death occurring in 2026, the amount will increase if the applicable exclusion amount increases.”
Washington State Department of Revenue: Filing Threshold Table
Washington State Estate Tax Table
The applicable tax rate is determined by the value of the taxable estate and the decedent’s date of death.
| For decedents with dates of death occurring in | Tax rate range is |
| January 1, 2014 through June 30, 2025 | 10% to 20% |
| July 1, 2025 and after | 10% to 35% |
Washington State Department of Revenue: Washington State Estate Tax Rate Tables
Maximum Allowable QFOBI Deduction Amount
Washington State Department of Revenue: Washington State – QFOBI Deduction
Farm Deduction Tangible Personal Property Used By a Qualified Nonfamilial Heir
Washington State Department of Revenue: Estate Tax Deduction for Farms
Source: Washington Department of Revenue