(1) Beginning January 1, 2026, in addition to all other taxes imposed under this chapter, persons must pay a surcharge on Washington taxable income over $250,000,000 in a calendar year.
(2) The rate of the tax is 0.5 percent of the amount of Washington taxable income over $250,000,000.
(3)(a) Any Washington taxable income subject to the tax in RCW 82.04.29004 is exempt from the surcharge imposed in this section.
(b)(i) Any Washington taxable income subject to the manufacturing tax rates in RCW 82.04.240, 82.04.2404, 82.04.241, 82.04.260, 82.04.2602, 82.04.287, 82.04.2909, or 82.04.294(1) is exempt from the surcharge imposed in this section.
(ii) Any Washington taxable income attributable to the wholesale or retail sale of products so manufactured by a person subject to the manufacturing tax rates specified in (b)(i) of this subsection (3) is exempt from the surcharge imposed in this section.
(iii) Any Washington taxable income attributable to retail sales that are exempt from the imposition of sales tax in RCW 82.08.0293, 82.08.0297, and 82.08.0281 is exempt from the surcharge imposed in this section.
(iv) Any Washington taxable income subject to the tax rates in RCW 82.04.260(12) is exempt from the surcharge imposed in this section.
(v) Any Washington taxable income attributable to wholesale sales of food and food ingredients, as defined in RCW 82.08.0293, is exempt from the surcharge imposed in this section provided that it is sold by a wholesaler that is not affiliated with either the retailer or manufacturer, or both, of such food and food ingredients. The exemption in this subsection (3)(b)(v) does not apply to Washington taxable income attributable to the wholesale sale of soft drinks, bottled water, or dietary supplements, as they are defined in RCW 82.08.0293.
(vi) Any Washington taxable income attributable to the wholesale or retail sale of petroleum products by a person who is both located in a state other than Washington and the owner of such materials processed for it in Washington by an affiliated processor for hire subject to the rate in RCW 82.04.280(1)(c), is exempt from the surcharge imposed in this section. For the purposes of this subsection (3)(b)(vi), "petroleum product" has the same meaning as in RCW 82.21.020.
(4)(a) The surcharge imposed under this section does not apply to taxable income for which a credit is allowed under RCW 82.04.440.
(b) The surcharge imposed under this section does not apply to a person engaged in business primarily as a farmer or eligible apiarist as defined in RCW 82.04.213.
(c) The surcharge imposed under this section does not apply to a person subject to the tax imposed pursuant to RCW 82.04.299.
(d) The surcharge imposed under this section does not apply to taxable income for wholesale and retail transactions of fuel as defined in RCW 82.38.020.
(5) Any income that is exempt from the surcharge imposed under this section is not included in the calculation of Washington taxable income in subsection (1) of this section.
(6) For the purposes of this section, the following definitions apply:
(a) "Affiliated" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person;
(b) "Control" means the possession, directly or indirectly, of more than 50 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(7) This section expires December 31, 2029.
Notes:
Automatic expiration date and tax preference performance statement exemption—Effective date—Severability—2026 c 238 ss 1101-1104: See notes following RCW 82.08.710.
Findings—Intent—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.
Effective date—2025 c 420 ss 114, 201, 301, 401, and 402: See note following RCW 82.32.875.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
(1) Beginning January 1, 2026, in addition to all other taxes imposed under this chapter, persons must pay a surcharge on Washington taxable income over $250,000,000 in a calendar year.
(2) The rate of the tax is 0.5 percent of the amount of Washington taxable income over $250,000,000.
(3)(a) Any Washington taxable income subject to the tax in RCW 82.04.29004 is exempt from the surcharge imposed in this section.
(b)(i) Any Washington taxable income subject to the manufacturing tax rates in RCW 82.04.240, 82.04.2404, 82.04.241, 82.04.260, 82.04.2602, 82.04.287, 82.04.2909, or 82.04.294(1) is exempt from the surcharge imposed in this section.
(ii) Any Washington taxable income attributable to the wholesale or retail sale of products so manufactured by a person subject to the manufacturing tax rates specified in (b)(i) of this subsection (3) is exempt from the surcharge imposed in this section.
(iii) Any Washington taxable income attributable to retail sales that are exempt from the imposition of sales tax in RCW 82.08.0293, 82.08.0297, and 82.08.0281 is exempt from the surcharge imposed in this section.
(iv) Any Washington taxable income subject to the tax rates in RCW 82.04.260(12) is exempt from the surcharge imposed in this section.
(v) Any Washington taxable income attributable to wholesale sales of food and food ingredients, as defined in RCW 82.08.0293, is exempt from the surcharge imposed in this section provided that it is sold by a wholesaler that is not affiliated with either the retailer or manufacturer, or both, of such food and food ingredients. The exemption in this subsection (3)(b)(v) does not apply to Washington taxable income attributable to the wholesale sale of soft drinks, bottled water, or dietary supplements, as they are defined in RCW 82.08.0293.
(vi) Any Washington taxable income attributable to the wholesale or retail sale of petroleum products by a person who is both located in a state other than Washington and the owner of such materials processed for it in Washington by an affiliated processor for hire subject to the rate in RCW 82.04.280(1)(c), is exempt from the surcharge imposed in this section. For the purposes of this subsection (3)(b)(vi), "petroleum product" has the same meaning as in RCW 82.21.020.
(vii) Any Washington taxable income received by a hospital as defined in RCW 70.41.020 is exempt from the surcharge imposed by this section.
(viii) Any Washington taxable income attributable to the warehousing and reselling of drugs for human use pursuant to a prescription is exempt from the surcharge imposed by this section. For the purposes of this subsection (3)(b)(viii), the following definitions apply:
(A) "Prescription" has the same meaning as in RCW 82.08.0281.
(B) "Warehousing and reselling drugs for human use pursuant to a prescription" means the buying of drugs for human use pursuant to a prescription from a manufacturer or another wholesaler and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the pharmacy quality assurance commission.
(ix) Any Washington taxable income attributable to the provision of health care services by a health care provider licensed under Title 18 RCW is exempt from the surcharge imposed by this section.
(4)(a) The surcharge imposed under this section does not apply to taxable income for which a credit is allowed under RCW 82.04.440.
(b) The surcharge imposed under this section does not apply to a person engaged in business primarily as a farmer or eligible apiarist as defined in RCW 82.04.213.
(c) The surcharge imposed under this section does not apply to a person subject to the tax imposed pursuant to RCW 82.04.299.
(d) The surcharge imposed under this section does not apply to taxable income for wholesale and retail transactions of fuel as defined in RCW 82.38.020.
(5) Any income that is exempt from the surcharge imposed under this section is not included in the calculation of Washington taxable income in subsection (1) of this section.
(6) For the purposes of this section, the following definitions apply:
(a) "Affiliated" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person;
(b) "Control" means the possession, directly or indirectly, of more than 50 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(7) This section expires December 31, 2029.
Notes:
Automatic expiration date and tax preference performance statement exemption—Effective date—Severability—2026 c 238 ss 1101-1104: See notes following RCW 82.08.710.
Effective date—2026 c 238 ss 909-911: See note following RCW 82.04.4451.
Findings—Intent—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.
Effective date—2025 c 420 ss 114, 201, 301, 401, and 402: See note following RCW 82.32.875.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.