Washington has increased its estate‑tax exemption to $3 million (up from $2.193 million) and adopted a new, more progressive rate schedule. The exemption will be indexed for inflation beginning in 2026. Washington state still lacks federal‑style portability—planning remains critical.

New Marginal Tax Rates

The image below shows the old and new marginal brackets applied to the portion of the estate that exceeds the $3 million exemption. Click to open a larger version in a new tab.

Key Takeaways

• Larger Exemption: Couples may shield up to $6 million with proper planning.
• Steeper Rates for Large Estates: Estates above $9 million now face a 35 % state levy.
• No Portability: Washington still lacks federal‑style portability—planning remains critical.
• Federal vs. State: Federal exemption is now $15 million per person; Washington’s lower threshold often drives the analysis.

Portability: Federal vs. Washington

Federal Portability: Under federal law, if a married person dies and doesn’t use their full estate‑tax exemption, the surviving spouse may elect to use the deceased spouse’s unused exemption (“DSUE”). This lets the couple combine exemptions, potentially reducing or eliminating federal estate‑tax liability on the survivor’s estate.

Washington State’s Lack of Portability: Washington does not offer a similar provision. Each spouse has an individual state exemption, and any unused portion from the first spouse to die is lost unless proactive planning is in place.

Impact on Estate Planning: Because the state rules differ from the federal rules, Washington couples must plan strategically—often through trusts or lifetime gifting—to ensure both exemptions are fully utilized and to minimize potential state estate taxes.

Estate‑Planning Strategies at a Glance

Below is a chart outlining various strategies that may reduce or eliminate Washington estate‑tax liability. Click the image—or the button below—for an interactive view.

View the Full Strategy Chart