What the 2026 Washington Estate Tax Changes Mean for $1–$5M Households

Many Washington families assume the federal estate tax is the only number worth watching.

It isn’t.

Washington has its own estate tax system, and it applies at a much lower threshold than federal law. For families in Bellevue, Issaquah, Sammamish, and throughout King County, that difference matters.

The 2026 Washington Estate Tax Threshold

For 2026, the Washington estate tax filing threshold is approximately $3,076,000 per person. The exemption is indexed for inflation and has increased from prior years, but it remains significantly lower than the federal estate tax exemption, which is currently around $15 million per person and $30 million for married couples.

That gap creates a quiet planning issue.

A household can be comfortably below the federal estate tax level and still fall within Washington’s taxable range. In that situation, there may be no federal estate tax due at all — yet a Washington estate tax could still apply.

For many Eastside families, that comes as a surprise.

Why This Is So Relevant in the Seattle Area

In the greater Seattle region, a net worth between $3 million and $5 million is not unusual.

Often, it is not the result of a single liquidity event or large inheritance. It is simply the accumulation of time and discipline. A primary residence that appreciated over decades. Retirement accounts funded consistently. Investment portfolios that grew steadily.

Many households in this range do not feel “estate tax wealthy.” They feel financially responsible.

Yet Washington’s estate tax structure does not distinguish between inherited wealth and long-term home appreciation. If total assets exceed the state exemption at death, the tax may apply.

That reality makes awareness important.

What Estate Planning Can (and Cannot) Do

Estate planning is not always about eliminating tax exposure. In many cases, that is not the primary objective.

Instead, thoughtful planning focuses on structure.

It clarifies ownership. It aligns beneficiary designations. It considers how assets pass and how administration will unfold. It ensures that decisions are intentional rather than reactive.

For some families, planning may include strategies designed to reduce Washington estate tax exposure. For others, the goal is simply to understand the landscape and make informed decisions.

Both approaches are valid; the key is knowing where you stand.

A Practical Perspective for $1–$5M Households

For households in the $1–$5 million range, Washington estate tax may or may not ultimately apply. But ignoring it rarely leads to better outcomes.

A clear estate plan allows you to:

Understand your approximate exposure.
Evaluate whether adjustments make sense.
Ensure your documents and asset titling are coordinated.
Avoid unnecessary surprises for the people who will one day administer your estate.

The Washington estate tax is simply one of the structural realities of living in this state.

With clarity, it becomes manageable.

Many clients begin with a simple introductory conversation to understand how the planning process works and whether this is the right time to move forward. If that would be helpful, you are always welcome to schedule a complimentary 20-minute consultation.