Standard deduction of $250,000 per year

From the 2024 DOR Tax Exemption Study

82.87.060(1) - Standard deduction of $250,000 per year Description An individual may deduct up to $250,000 from the taxable amount for tax year 2022. For spouses or domestic partners, their combined standard deduction is limited to $250,000 regardless of whether filing joint or separate returns. For years 2023 and beyond, the deductible amount is indexed to inflation. Purpose To avoid taxing individuals with relatively small amounts of Washington capital gains. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $736.000 $773.000 $796.000 $832.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $760.000 $790.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect January 1, 2025, and impacts 12 months of collections in fiscal year 2026. - Growth rate mirrors the long-term capital gains growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Taxpayers with estimated payments: - Will receive refunds in fall 2023, amountin