Washington State's New Tax Makes Marriage Cost Rich Couples More Money

Washington state has created a new tax rule that could make wealthy couples think twice about getting married.

The state recently introduced a "millionaire tax" (a special tax for people earning over $1 million per year). But here's the catch: married couples pay more tax than two single people earning the same total amount.

Here's how it works: • Single people pay the extra tax only on income above $1 million • Married couples filing together also pay on income above $1 million combined • Two single millionaires could earn $2 million total before hitting the tax • A married couple hits the tax at just $1 million combined

This "marriage penalty" (when married couples pay more taxes than singles) has people debating whether the law is fair. Some wealthy residents are considering moving to other states to avoid the tax altogether.

Washington is one of few states without regular income tax (tax on your salary and earnings), so this millionaire tax represents a big change. The money raised goes to education and childcare programs.

Critics say the marriage penalty unfairly punishes couples, while supporters argue that millionaires can afford it and the state needs the revenue (money collected from taxes).

The debate highlights a common tax challenge: making rules that are both fair and effective at raising money for public services.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/03/20/washington-millionaire-tax-marriage.html