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Washington may soon have the highest top income tax rate in America
Just two years after voters rejected expanding state income taxation, lawmakers are moving forward with a new 9.9% “millionaire’s tax” that would push Seattle’s combined state and local rate to 18.037% — the highest in the nation.
When combined with federal taxes, top earners could face a staggering 57.9% marginal tax rate.
And here’s the part many residents are just now realizing:
Voters pushed back on expanding income taxation.
Now, right after the two-year mark, legislators are advancing a new version through Olympia.
What’s Being Proposed?
A 9.9% tax on income above $1 million — on top of existing taxes including:
• Washington’s capital gains tax
• The WA Cares payroll tax
• Seattle’s JumpStart payroll tax
• Seattle’s 5% Social Housing tax
If passed, Seattle would surpass New York City, Portland, and California — becoming the highest-taxed jurisdiction in America at the top marginal rate.
Who Would Really Pay?
This isn’t just about “millionaires.”
The tax would heavily impact:
• Tech employees receiving RSUs at companies like Amazon and Microsoft
• Startup employees whose stock vests all at once
• Small business owners taxed through pass-through income
Critics warn it could damage Washington’s competitive edge and push jobs and investment elsewhere.
The Bigger Question
Washington voters have historically rejected income taxes at the ballot box.
So why are lawmakers advancing one now?
And what happens next?
Washington’s tax identity may be changing — and fast.
👉 Read the full breakdown here: WA Income Tax Could Be the Highest Income Tax Rate in America SB6346
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KING COUNTY MARKET UPDATE VIDEO
Feb 2026 Housing Market Stats Are In
March 3, 2026
Housing Market Statistices for January 2026 in and around Seattle, Olympia, Tacoma and Everett are showing steady rebalancing into a fair market for buyers as far as competition, and somewhat on price. We are seeing price reductions, and very long days on market, in year-over-year comparisons. Sale Price compared to original list price has fallen for the first time in years, meaning selling over asking price and bidding wars are practically extinct.
Let’s Look at February’s Numbers:
| COUNTIES | SP % TO ORIGINAL LP Feb 2026 | DAYS ON MARKET Feb 2026 | SOLD PRICE MEDIAN Feb 2026 | Homes For Sale Feb 2026 |
| KING (Seattle, WA) | King 98.9% -1.1% | King 45 Days +18.4% | King $840,000 – +1.3% | King 4,482 +38.6% |
| SNOHOMISH (Everett, WA) | Snohomish 99.4% -0.6% | Snohomish 46 Days +24.3% | Snohomish $724,998 -1.4% | Snohomish 1,367 +46.2% |
| PIERCE (Tacoma, WA) | Pierce 98.3% -1.2% | Pierce 60 Days +22.4% | Pierce $570,000 +4.6% | Pierce 1,717 +18.5% |
| THURSTON (Olympia, WA) | Thurston 98.2% -1.8% | Thurston 61 Days +27.1% | Thurston $510,000 -3.4% | Thurston 597 +27.6% |
Seattle resides in King County and even though homes are selling close to list price. Sellers are now more accepting of the importance in accurate pricing and price reductions. Pricing is key to not stay stagnant. Currently, every county in these Puget Sound Regions listed, homes are still averaging selling under list price.
Days on Market is increasing in every county, which is not a great sign. Combine that with the increased inventory as compared to last year, and we are still sitting in a market of “Correction.” The good news, is homes are still selling in a week or less if they are priced appropriatey and don’t have a laundry list of repairs or upgrades needed. I have seen homes on the market for just 3 days, where others in the same neighborhood were still sitting at 62.
Just how serious is this? We will find out soon, as Spring and Summer are just around the corner. Inventory actually decreased compared to last month in each of the analyzed counties, except for Thurston County, where the housing is much more affordable, but it is much higher than previous years. It appears that home sellers may be fealing a little bit of FOMO and don’t want the potential of losing equity.
January’s Stats:
| COUNTIES | SP % TO ORIGINAL LP Jan 2026 | DAYS ON MARKET Jan 2026 | SOLD PRICE MEDIAN Jan 2026 | Homes For Sale Jan 2026 |
| KING (Seattle, WA) | King 96.8% -1.4% | King 42 Days +35.5% | King $850,000 -0.6% | King 4,756 +32.9% |
| SNOHOMISH (Everett, WA) | Snohomish 97.6% -1.4% | Snohomish 39 Days +50.0% | Snohomish $715,000 -7.2% | Snohomish 1,580 +33.8% |
| PIERCE (Tacoma, WA) | Pierce 97.3% -0.8% | Pierce 43 Days +48.3% | Pierce $560,000 -0.2% | Pierce 2,337 +13.8% |
| THURSTON (Olympia, WA) | Thurston 96.7% -1.6% | Thurston 46 Days +31.4% | Thurston $506,500 -0.6% | Thurston 880 +39.5% |
King County’s Reflection:
As of February 21, 2026, the broader King County area is saw a slight adjustment in pricing combined with a significant surge in inventory compared to last year:
- Median Residential Sold Price in Jan: $850,000, a modest 1% year-over-year decrease.
- Inventory Growth: Active listings have climbed 31% compared to last year, providing more choice for winter buyers.
- Pending Sales: Despite softer closed sales volume, pending sales surged 36-37% month-over-month, signaling strong momentum heading into the spring season.
Market Summary
The “standard” 2026 market is characterized by price separation. While single-family homes in prime Seattle neighborhoods continue to move quickly, the condo market and luxury segments are seeing more negotiation. For sellers, strategic presentation and realistic pricing are essential; for buyers, the increased inventory offers the first real opportunity in years to negotiate concessions.
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Seattle Real Estate Market Outlook for Sellers in 2026
If you’re thinking about selling your home in Seattle in 2026, now is the time to get informed—and strategic.
The Seattle real estate market is entering a more balanced phase. Gone are the days when sellers could simply list and wait for multiple offers. In 2026, successful home sales will depend on pricing, presentation, and timing—and on having the right local guidance.
Buyer Pool Is Changing
In 2026, expect:
- Fewer impulse buyers
- More qualified, intentional buyers
- Smoother transactions—but only for well-prepared homes
- Inspection contingencies, rather than waived inspections
- Buyers want to see price reductions and no repair work needed
- Buyers asking (and needing) closing cost credits- and they’re getting them
Buyers are educated, cautious, and selective. They’re comparing homes carefully, which means your home must stand out.
Buyer Leverage is Officially Here
With inventory rising across the Seattle area, buyers have more choices. This shift gives buyers more negotiating power—especially in higher-priced neighborhoods.
Homes that are overpriced or underprepared will sit. Homes that are priced right and move-in ready will still sell well.
Home Prices: Stable, With Some Softening
Seattle home values are expected to remain relatively flat or soften slightly in 2026. This makes accurate pricing more important than ever.
The #1 mistake sellers will make? Overpricing and chasing the market down.
A Detailed Comparative Market Analysis (CMA) can help you understand exactly where your home fits in today’s market.
Visit FreeHomeValue.org to request your free, accurate, no-obligation CMA from a licensed Realtor with over 2 decades of Real Estate experience.
Not Sure if You Should Buy or Sell This Year?
Ready to Buy a Home in 2026?
If you’re planning to buy a home in the Seattle area in 2026, you’re in luck—the market has shifted, offering more inventory and less intense competition than in years past. To set yourself up for success, your first step should be connecting with an experienced Realtor.
Starting early allows you to build a solid action plan and avoid common financial missteps that could damage your credit score. From there, the mortgage process moves quickly: you can often get pre-qualified in minutes, with a formal pre-approval following shortly after.
Many buyers believe the myth that they must be entirely debt-free before purchasing. While paying down debt is generally a plus, doing it incorrectly can backfire. For instance, paying off an old collection account can inadvertently “reset” its history and drop your credit score. In some cases, you might not even owe the debt or could have disputed it entirely.
This is exactly why it’s imperative to have a loan officer review your credit early on. Beyond protecting your score, they will help you bridge the gap between what you can borrow and what you actually want to spend on your monthly mortgage payment.
While the 2026 market remains competitive, it is no longer the frantic environment of previous years. Experts predict steady, sustainable growth, making it an ideal time to make your move with the right team behind you.
Key 2026 Seattle Housing Market Trends
- Balanced Market: The market is expected to shift away from extreme seller advantages to a more balanced, 3–5 month supply of inventory.
- Inventory & Competition: While competition remains, it is less frantic than previous years, offering more choices for buyers.
- Pricing: Home prices are expected to see continued, though potentially slower, growth.
- Mortgage Rates: Rates are expected to remain relatively stable in the mid-6% range, suggesting that waiting for a drastic drop may not yield significant savings.
Actionable Preparation Steps
- Get Pre-Approved: A lender can quickly provide a pre-approval, which is crucial for making competitive offers.
- Do Not Pay Off Debt Without Advice: Consulting a loan officer is essential because paying off old, dormant collections can re-age them, lowering your credit score.
- Understand Affordability: Define your comfortable monthly mortgage payment rather than just your maximum buying capacity.
- Leverage Local Expertise: Work with a Realtor who can track neighborhood-level trends, which is important for identifying the best deals in a normalizing market.
For many, 2026 presents a “healthier” real estate environment, providing a more favorable, less rushed experience than the frenzied, low-inventory years of the recent past.
Read More Posts:
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March 3, 2026 Housing Market Statistices for January 2026 in and around Seattle, Olympia, Tacoma and Everett are showing steady rebalancing into a fair market for buyers as far as competition, and somewhat on price. We are seeing price reductions, and very long days on market, in year-over-year comparisons. Sale Price compared to original listContinue reading “Seattle Housing Market Stats For 2026” - Death of Iran’s Supreme Leader: How a Closure of the Strait of Hormuz Could Disrupt U.S. Supply Chains and Economy
February 28th, 2026 As of February 28, 2026, recent death of Iran’s Supreme Leader has heightened tensions in the Middle East. The Strait of Hormuz is facing severe operational disruptions due to threats from Iran’s Islamic Revolutionary Guard Corps (IRGC), which has warned ships via VHF radio that passage is “not allowed” in retaliation forContinue reading “Death of Iran’s Supreme Leader: How a Closure of the Strait of Hormuz Could Disrupt U.S. Supply Chains and Economy”
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Blog Articles Authored by Debra Teal, Real Estate Broker, Advisor and Home Buying Educator
