The Giving Question Washington’s New Tax Is Really Asking

Most of the conversation about Washington’s new Millionaires’ Tax has understandably focused on the cost. But tucked inside the legislation is something that has received almost no attention: a provision that quietly rewards Washington state charitable giving — and signals that the legislature wants high earners to invest in their communities.

Under ESSB 6346, individuals subject to the tax can claim a deduction of up to $100,000 for contributions to Washington-based charitable organizations — reducing the income on which the 9.9% tax applies. It’s not a headline number. But for clients who are already philanthropically engaged, or who have been thinking about giving more intentionally, it’s a meaningful signal worth understanding.

More than the dollars, though, we think this provision is an invitation. Washington’s legislature built a carve-out that essentially says: if you earn significantly here, we’d like you to give back here. That’s a values statement embedded in tax code — and it’s one worth engaging with on your own terms, not just as a line item.

How the deduction works

The deduction uses the same definition of qualifying organizations as Washington’s existing capital gains tax under RCW 82.87.080 — which means the eligible universe is already somewhat established in practice. Washington-based 501(c)(3) organizations generally qualify.

A few details worth noting:

• The $100,000 cap is flat regardless of filing status. A single filer and a married couple get the same ceiling. This is worth factoring into how you structure giving across a household.
• The deduction applies to Washington taxable income, so at a 9.9% rate, a full $100,000 deduction is worth up to $9,900 in state tax savings. Not transformative, but real.

The strategic question: where are you giving?

Most philanthropically engaged clients we work with give across a mix of organizations — some local, some national, some tied to universities or causes that transcend geography. That’s often exactly right for who they are and what they care about.

But this provision is a prompt to look at that mix with fresh eyes. Not to let the tax tail wag the philanthropy dog — but to ask honestly: am I giving as intentionally to my local community as I am to national causes? Are there Washington-based organizations doing work I care about deeply that I’ve simply never prioritized?

For some clients, the answer will be yes, and reweighting some giving toward WA-based organizations will feel both financially sensible and values-aligned. For others, the national or global causes they support are non-negotiable, and that’s the right answer too. The point is to be intentional.

A bigger conversation about legacy

We’ve found that tax events — even ones that feel like pure headaches — have a way of surfacing questions people have been quietly carrying. A new income tax on significant wealth is, among other things, a moment to ask: what is this wealth actually for?

For clients who haven’t yet formalized a giving strategy, this is a natural moment to start. Not because the deduction is large enough to demand it, but because the law creates a structure — a defined category, a cap, a Washington focus — that makes it easier to have a concrete conversation about charitable intent.

Questions worth sitting with:

• Do you have a clear sense of what causes and organizations you want to support over the next decade?
• Is your giving reactive — responding to asks as they come — or proactive and planned?
• If you have a DAF, are you granting from it as intentionally as you contributed to it?
• Are there Washington-based organizations whose work you admire but haven’t yet supported meaningfully?
• Does your family share a giving philosophy — and have you had that conversation explicitly?

What this isn’t

We want to be clear about something: we’re not suggesting anyone give to Washington charities primarily because of a tax deduction. Philanthropy motivated mainly by tax efficiency tends to feel hollow — and it usually produces giving that isn’t particularly strategic or meaningful.

What we are suggesting is that this provision is worth knowing about, and that it creates a natural opening to examine your giving with more intentionality than the day-to-day usually allows. If you were already inclined to support your community, the law now rewards that. If you’ve been meaning to think more carefully about your philanthropic strategy, this is as good a catalyst as any.

Let’s talk about what you want to build

Brighton Jones works with clients not just on what to do with wealth today, but on what they want it to mean over time. Philanthropic planning — deciding where to give, how to structure it, how to involve family, how to make it last — is one of the most meaningful conversations we have.

Washington’s new income tax is, for most of our clients, a planning challenge. But the charitable provision inside it is something a little different. It’s an opening.

If you’d like to explore what a more intentional giving strategy might look like for you — or simply want to understand how this deduction fits into your broader picture — reach out to your Brighton Jones advisor. We’d love to have that conversation.

This content is for informational purposes only and does not constitute legal or tax advice. Please consult with your Brighton Jones advisor and qualified legal counsel regarding your specific situation.