taxation

Washington State Senate passed Senate Bill 5335 establishing a 7% income tax on capital gains exceeding $250,000 on March 11, 2025, with a vote of 26-23. Governor Bob Ferguson has indicated he will sign the measure, which would direct revenue primarily to K-12 education funding and other state services.

New York consistently ranks among the states with the highest tax burdens, but whether it ranks first depends on the methodology used. Studies measuring total state and local tax burden as a percentage of income place New York in the top three states, with rankings varying between first and third depending on the data source and year analyzed.