HB 1666
In CommitteeHouse
Estate tax repeal
Repealing the estate tax.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill repeals Washington State’s estate tax entirely, removing a tax on the value of property transferred at death for estates above the federal threshold. The legislature cited concerns that the tax encourages wealthy residents to leave the state and harms economic competitiveness. The repeal takes effect for deaths on or after August 1, 2025.
- Repeals all parts of Washington’s estate tax law (Chapter 83.100 RCW), including the tax itself, filing requirements, penalties, interest rules, and enforcement procedures.
- Removes the Education Legacy Trust Account as a destination for estate tax revenue, ending dedicated funding for K-12 education from this source.
- Decodifies and recodifies related legal provisions to clean up the Revised Code of Washington (RCW) after repeal.
- Applies to people who die on or after August 1, 2025 — estates of those who die before that date are still subject to the existing estate tax.
- Eliminates estate tax return filing obligations, payment deadlines, and related administrative requirements for the Department of Revenue.
Who is affected
- High-net-worth individuals and families — Individuals and families with estates valued above the federal estate tax threshold (currently $13.8 million per person in 2025) who may have previously owed Washington’s state estate tax; they would no longer owe this tax after August 1, 2025.
- Estate administrators and legal professionals — Executors, trustees, and personal representatives handling estates of deceased Washington residents; they would no longer need to file state estate tax returns or manage estate tax payments.
- State and local governments — State and local governments, which would lose revenue from estate tax collections previously deposited into the Education Legacy Trust Account and general fund.
- Landowners and agricultural/business families — Real estate developers and agricultural businesses that own land valued at or above the estate tax threshold, who may have previously used estate planning strategies to avoid the tax.
Pro/Con Analysis
Stronger case for concerns
Potential Benefits (3)
Eliminates estate tax compliance costs (filing, legal, accounting) for high-net-worth individuals and their advisors, reducing administrative burden and potential legal exposure for estates above the federal threshold.
FinancialIndustryRef: Sec. 2(1)–(28) (repealing all estate tax provisions)Removes complexity around the family-owned business deduction, which required extensive documentation and valuation; however, since the entire estate tax is repealed, this benefit is incidental and applies only to the wealthiest estates.
Business & EmploymentIndustryRef: Sec. 2(5) (repealing RCW 83.100.048, family-owned business deduction)Eliminates the requirement to file estate tax returns and pay state estate taxes for estates above $13.8M, allowing heirs and executors to avoid complex state-level tax administration—though this benefit is almost exclusively accessible to the top 0.1% of wealth holders.
FinancialIndustryRef: Sec. 2(24) (repealing RCW 83.100.220, Education Legacy Trust Account)
Potential Concerns (5)
Eliminates dedicated K–12 education funding from the Education Legacy Trust Account, which received ~$250M/year from estate tax revenue; this reduces a stable, progressive revenue stream for schools and increases pressure on general fund or local property taxes to compensate.
EducationPeopleRef: Sec. 2(24) (repealing RCW 83.100.220)Removes a modestly progressive tax that primarily affected high-net-worth individuals (estates >$13.8M); while most Washingtonians pay no estate tax, the loss of $250M/year in revenue disproportionately harms public services that lower- and middle-income households rely on—including education, healthcare, and housing assistance.
FinancialPeopleRef: Sec. 2(1)–(28) (full repeal of Chapter 83.100 RCW)Eliminates a targeted deduction for qualified family-owned business interests, which could increase estate tax liability for mid-sized farms and small businesses with illiquid assets—though since the entire estate tax is repealed, this deduction becomes irrelevant post-2025.
Business & EmploymentPeopleRef: Sec. 2(5) (repealing RCW 83.100.048, family-owned business deduction)Reduces state revenue available for shared-cost programs (e.g., mental health services, transportation infrastructure), increasing fiscal pressure on counties and municipalities that depend on state funding for local services.
Local GovernmentLean peopleRef: Sec. 2(1)–(28) (repealing all estate tax provisions)Adds administrative burden on local probate courts and county auditors to update records and adjust estate-related filings, though the cost is modest and offset by elimination of estate tax filing obligations.
Local GovernmentLean peopleRef: Sec. 2(25)–(28) (decodification and recodification)
Who Is Most Affected
High-net-worth individuals (estates >$13.8M) avoid $250K–$2M+ in state estate tax liability; estate planners and wealth advisors benefit from reduced compliance work and client retention pressure.
Estate administrators and legal professionals face reduced filing obligations and fewer disputes with the Department of Revenue, but lose revenue-generating estate tax planning work.
State and local governments lose $250M/year in dedicated education funding and general revenue, forcing cuts or tax shifts that disproportionately affect public schools, affordable housing, and social services.
Agricultural and small business families with estates above the federal threshold may benefit from reduced estate tax liability, but most do not owe the tax due to low asset concentration; only a small subset of large landholdings gain significantly.
K–12 public schools lose a dedicated, progressive funding source; districts in low-wealth areas that rely on state funding are most affected, potentially widening resource gaps.