As of mid-2025, the top Washington estate tax rate climbed to 35 percent, the highest of any state. Most families never owe a dime, because the tax only starts above a $3 million exclusion. This guide tells you whether your estate is on the hook, how much it would owe, and what the new rules changed.
If you are settling an estate or planning your own, the numbers below are the ones that matter.
In This Guide
- Washington Estate Tax at a Glance
- How the Washington Estate Tax Works
- Estate Tax Is Not Inheritance Tax
- Not the Federal Tax, Not Medicaid Recovery
- Who Should Worry About This
- Frequently Asked Questions
- Next Steps
Washington Estate Tax at a Glance
Here is the whole picture in one table. Washington runs a graduated estate tax, paid by the estate before assets pass to heirs, and there is no separate inheritance tax on the people who receive the money.
| Feature | Washington |
|---|---|
| State estate tax? | Yes |
| State inheritance tax? | No |
| Exclusion amount | $3,000,000 |
| Top rate | 35% on the taxable estate above $9,000,000 |
| Exclusion portable between spouses? | No |
How the Washington Estate Tax Works
The estate tax is a tax on the value of everything a person owned at death, paid by the estate itself, not by the heirs. The estate's executor files the return and pays the bill out of estate assets before the remainder is distributed.
The first thing to check is the exclusion. For deaths from July 1, 2025 through June 30, 2026, the applicable exclusion amount is $3,000,000, up from $2,193,000 for deaths before that date. If the taxable estate comes in under the exclusion, there is no Washington estate tax and, in most cases, no return to file. Only the value above the exclusion gets taxed.
What counts toward the estate is broader than people expect. The taxable estate generally includes the home and any other real estate, bank and brokerage accounts, retirement accounts like IRAs and 401(k)s, the death benefit of life insurance the deceased owned, business interests, vehicles, and personal property. It is the gross value of what the person owned or controlled at death, not just the cash on hand. In a state with home values as high as Washington's, a long-time homeowner with retirement savings can clear $3 million without ever thinking of themselves as wealthy.
The rate is graduated, meaning it climbs in brackets as the estate gets larger. For deaths on or after July 1, 2025, the top rate is 35 percent on the portion of the taxable estate above $9 million. That top figure is new: the previous top rate was 20 percent. So while the higher exclusion shields more small and mid-size estates, the largest estates now pay sharply more on the upper end. Washington's 35 percent is the highest top estate-tax rate in the country.
There is one significant break for married couples. Washington offers a qualifying spousal personal-residence exclusion, which can shield the value of the family home in qualifying cases. If a residence is a large share of the estate, this can change the math considerably, so it is worth asking an estate attorney whether your situation qualifies.
One thing Washington does not offer is portability. The exclusion is not portable between spouses, which means a surviving spouse cannot add a deceased spouse's unused exclusion to their own. States like Minnesota allow this; Washington does not. For couples with a combined estate near or above the threshold, that gap is exactly the kind of thing trust planning is designed to work around, and it is a conversation worth having with a professional well before either spouse dies.
Estate Tax Is Not Inheritance Tax
People use these two terms as if they mean the same thing. They do not, and the difference decides who writes the check.
An estate tax is paid by the estate, out of the deceased person's assets, before anything is distributed. An inheritance tax is paid by the heirs, on what each one receives, after distribution. A handful of states (Pennsylvania, New Jersey, and a few others) have an inheritance tax. Washington does not. So if you inherit from a Washington estate, you do not owe a Washington inheritance tax on your share. Any tax owed was the estate's responsibility and was settled before you received anything.
That is good news for heirs. The estate tax can reduce how much is left to divide, but it does not land a separate bill on each beneficiary.
Not the Federal Tax, Not Medicaid Recovery
Two other things get confused with the state estate tax. Both are different, and the distinction matters for planning.
The federal estate tax is separate, and its exemption is far higher. The federal exemption sits around $13.99 million per person for 2025, more than four times Washington's exclusion. A great many estates owe Washington tax while owing nothing to the IRS, because they fall in the gap between the two thresholds. The two taxes are calculated independently, on separate returns. Clearing the federal bar tells you nothing about whether you owe Washington.
Medicaid estate recovery is not a tax at all. It is the process by which a state seeks repayment from the estate of someone who received certain Medicaid-funded long-term care. It applies to a completely different group of people, for a different reason, and is governed by separate rules. If a parent received Medicaid-paid nursing home care, the relevant concern is recovery, not the estate tax. We cover that fully in Medicaid estate recovery; do not let the similar name fool you into treating them as one issue.
Who Should Worry About This
If the total estate, counting the home, retirement accounts, investments, and life insurance the deceased owned, is comfortably under $3 million, the Washington estate tax almost certainly does not apply. For most families, that is the end of it.
If the estate is near or above $3 million, it is time to file a return and likely time to bring in a professional. Estate tax planning is genuinely intricate, the spousal residence exclusion and the lack of portability both turn on details, and the stakes run into six figures fast. An estate attorney or a CPA who handles estates is the right call. This guide is general information, not legal or tax advice.
For the bigger picture of paying for care and protecting assets while a parent is still living, see Building a Senior Care Funding Plan, and if the home is the largest asset, Selling or Renting a Home to Pay for Care.
Frequently Asked Questions
Yes. Washington levies a graduated state estate tax on estates above the exclusion, which is $3,000,000 for deaths between July 1, 2025 and June 30, 2026. Estates below that owe no Washington estate tax. The tax is paid by the estate, not by the heirs.
It is graduated. For deaths on or after July 1, 2025, the top rate is 35 percent on the portion of the taxable estate above $9 million, up from a previous top rate of 20 percent. Smaller taxable amounts are taxed at lower bracket rates below that top figure.
No. Washington has no inheritance tax. If you inherit from a Washington estate, you do not owe a separate Washington tax on your share. Any estate tax was paid by the estate before distribution.
No, they are separate. The federal exemption is far higher, around $13.99 million per person for 2025, so many estates owe Washington tax while owing nothing federally. The two are calculated on separate returns.
No. Washington's exclusion is not portable between spouses. A surviving spouse cannot add a late spouse's unused exclusion to their own. Couples with combined estates near the threshold often use trust planning to address this, and should consult an estate attorney.
Learn More
Which States Have an Estate or Inheritance Tax These guides go deeper on planning, the home as an asset, and the separate question of Medicaid recovery:
Next Steps
Find out whether your estate is near the threshold, and if it is, get a professional involved early. The exclusion and the new 35 percent top rate are the figures to know, and an estate attorney can tell you how the spousal residence exclusion applies to you.
Find personalized help planning for senior care costs at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.