Capital gains tax

This bill:

Imposes a 7% tax on the sale or exchange of certain long-term capital assets. The taxable amount is an individual's Washington capital gains.

Creates the following deductions from the capital gains tax: A standard deduction of $250,000 per year per individual, married couple, or domestic partnership. This amount is adjusted for inflation annually. A deduction for the long-term capital gain from a taxpayer’s sale of a qualified family-owned small business. A charitable donations deduction not to exceed $100,000 per year per taxpayer, for taxpayers making charitable donations in excess of $250,000 per year. These amounts are adjusted for inflation annually.

Exempts the sale or exchange of certain assets from the tax.

Creates a B&O tax credit for B&O taxes due on the same sale or exchange that is also subject to the Washington capital gains tax.

Effective July 25, 2021; however, the new tax is not imposed until Jan. 1, 2022 ( ESSB 5096 , Chapter 196, Laws of 2021).

Learn more about Capital Gains tax