The Two Estate Taxes Washington Residents Need to Know About
1. The Federal Estate Tax
The federal estate tax applies to estates nationwide, and currently, the exemption amount is around $14 million per person.
If you’re married, the good news is you can transfer your unused exemption to your spouse, effectively giving you about $28 million in combined exemption before estate taxes kick in. This is called portability.
So for many families, especially those with estates below this threshold, federal estate tax isn’t an immediate concern.
2. Washington State Estate Tax
Washington has its own state estate tax separate from the federal one, and it works differently.
- The exemption amount in Washington is $2.193 million per person — much lower than the federal exemption.
- There is no portability, which means if you’re married, each spouse only gets their own exemption amount. So, together, a married couple only has about $4.386 million before state estate taxes apply.
This lower exemption means many Washington residents are subject to state estate taxes even if they wouldn’t owe anything federally.
What Does This Mean for You?
- If your estate is valued above $2.193 million, you may owe Washington state estate taxes even if you don’t owe federal taxes.
- Proper planning can help reduce your Washington estate tax burden—sometimes by hundreds of thousands of dollars.
- For a deeper dive into how to potentially double your Washington estate tax exemption and save over $250,000, check out my detailed YouTube video.
Need Help?
If you want personalized guidance on your estate planning or probate questions, visit cmsawfirm.com to schedule a free consultation. We’re here to help you protect your assets and ensure your wishes are honored.
Thanks for reading. I’m Christopher Small, owner of CMS Law Firm, and we do estate planning, probate—and we do it well.