{"id":45120,"date":"2026-02-10T14:10:03","date_gmt":"2026-02-10T22:10:03","guid":{"rendered":"https:\/\/evergreensmallbusiness.com\/?p=45120"},"modified":"2026-02-10T14:10:03","modified_gmt":"2026-02-10T22:10:03","slug":"washington-state-millionaires-tax-residency-rules","status":"publish","type":"post","link":"https:\/\/evergreensmallbusiness.com\/washington-state-millionaires-tax-residency-rules\/","title":{"rendered":"Washington State Millionaires Tax Residency Rules"},"content":{"rendered":"

\"Washington<\/a>The proposed Washington state millionaires\u2019 9.9% income tax comes with residency rules. And some taxpayers will really want to understand those rules.<\/p>\n

In effect\u2014and this is intentionally a rough description\u2014a resident pays the millionaires\u2019 tax on their Washington taxable income in excess of $1,000,000. (The actual law as currently proposed is significantly more complicated; this description is only meant to orient the reader.)<\/p>\n

A Term to Know Before You Look at Residency Rules<\/h2>\n

Before looking at the residency rules, you need to understand one term: domicile.<\/p>\n

Domicile means the primary place you live and intend to live. If you work in Washington state, rent or own a home you live in, plug into the local community here, have children in school here, and generally organize your life around Washington, you are likely domiciled in Washington state. If you always plan to return to Washington state, you are likely domiciled in Washington state.<\/p>\n

If you spend time in Washington state and also spend time in another state (for example, Florida or Arizona), your domicile is generally the state where you have the deepest roots and strongest connections. This determination is inherently fuzzy and fact\u2011specific. (Hopefully, the legislature will provide a clearer definition in the final bill.)<\/p>\n

Here is the key takeaway: If you are domiciled in Washington state, you will usually pay the millionaires\u2019 income tax. But domicile alone does not determine whether you pay the tax. The statute separately defines who is treated as a resident for millionaires\u2011tax purposes, and those residency rules can override domicile in limited circumstances.<\/p>\n

The 30\u2011Day Residency Rule<\/h2>\n

The first residency concept to understand is the so\u2011called \u201c30\u2011day rule.\u201d The proposed statute provides that a \u201cresident\u201d includes an individual:<\/p>\n

(i) Who is domiciled in this state during the taxable year, unless the individual (A) maintained no permanent place of abode in this state during the entire taxable year, (B) maintained a permanent place of abode outside of this state during the entire taxable year, and (C) spent in the aggregate not more than 30 days of the taxable year in this state.<\/p><\/blockquote>\n

This provision is easy to misread. The 30\u2011day rule is not what makes someone a resident. It is an exception that allows a Washington domiciliary to avoid being treated as a resident\u2014but only if all three conditions are satisfied for the entire year.<\/p>\n

Under this rule, even if you are domiciled in Washington state, you are not treated as a resident for millionaires\u2011tax purposes if:<\/p>\n