Washington’s New Estate Tax Threshold: What You Need to Know for 2025

If you are a Washington resident planning your estate, there’s a major update you need to know. As of July 1, 2025, the Washington State estate tax exemption threshold increased from $2,193,000 to $3,000,000—a 37% increase that may impact your estate planning strategies.

🏛 What Is the Washington Estate Tax?

Washington is one of the few states that imposes its own estate tax, separate from the federal estate tax. This state-level tax applies to the net value of a person’s estate at the time of death—including real estate, investment accounts, life insurance, retirement accounts, and business interests—minus liabilities and deductions like debts, funeral costs, administrative expenses, and charitable contributions.

📈 Key Changes Starting July 1, 2025:

• Old threshold (before June 30, 2025): $2,193,000
• New threshold (starting July 1, 2025): $3,000,000
• Who is impacted: Washington residents with estates valued over $3 million

If your estate exceeds this new threshold, it may be subject to Washington’s graduated estate tax rates, ranging from 10% to 20% depending on the estate’s size.

💼 How Can You Reduce Your Estate Tax Liability?

With proper estate planning, you can minimize your estate’s taxable value and preserve more of your assets for your heirs. Common strategies include:

• Establishing revocable or irrevocable trusts
• Utilizing charitable giving
• Gifting assets during your lifetime
• Coordinating with tax and legal professionals to leverage all available deductions

👨‍⚖️ Why Work With Althauser Rayan Abbarno?

The estate planning attorneys at Althauser Rayan Abbarno have helped families across Washington protect their wealth, preserve their legacy, and reduce estate taxes. Whether your estate is well over the threshold or just approaching it, now is the time to create or review your estate plan.

We offer:
✅ Convenient Estate Planning Consultations
✅ Personalized Legal Guidance
✅ Spanish-Speaking Services Available

📍 Offices in Centralia
📞 Call us today at (360) 736-1301
🌐 Learn more: www.centralialaw.com