Washington Gov. Bob Ferguson has signed SB 6346 into law, which will impose a 9.9% annual tax on personal income over $1 million beginning in 2029. The Washington Millionaires’ Tax means coordinated planning may become even more important for business owners and high-net worth individuals (HNW) and families.  

Addressing Washington’s millionaires’ tax effectively requires a coordinated approach that evaluates its impact on your current business, informs transaction planning decisions, and aligns with your long-term wealth strategy.  

Now is a good time for private company owners and high-net-worth families in Washington to begin strategic planning. Start by asking these five important questions to help you determine whether you need to revisit your current strategy to meet your long-term goals. 

• Are my business and personal strategies aligned? Major tax changes can affect business decisions and personal financial planning. Reviewing them together can help ensure they are working toward the same outcomes. 

• If I am considering an exit in 2028 or beyond, should I revisit timing or structure? Business owners planning a sale, merger, or succession event may want to evaluate whether a different timeline or transaction structure could better support their goals.

• Have I considered how a major liquidity event could affect my broader financial plan? A sale, large distribution, or other significant income event can have ripple effects across tax planning, cash flow, investment strategy, and long-term wealth decisions. 

• Are my estate, gifting, and charitable planning strategies up to date? High-net-worth families may benefit from reviewing whether existing strategies still align with family priorities and current planning opportunities. 

• Does my advisory team communicate across tax, transaction, and wealth planning? The strongest planning outcomes often come from a coordinated approach. Making sure your advisors are aligned can help you evaluate options more clearly and act with confidence. 

Because this law could influence planning decisions well before implementation, now is a good time to review your strategy and confirm that it supports your long-term objectives. 

For more information, review our Three Strategic Considerations for Business Owners and High-Net-Worth Individuals or connect with an Aldrich Wealth advisor.