The Washington State Senate voted Wednesday to approve legislation imposing a 9.9 percent tax on residents earning more than $1 million annually, advancing a measure that Democratic leaders say will fund social programs while drawing sharp criticism from Republicans.

The bill passed in the Democrat-controlled chamber and now heads to Democratic Gov. Bob Ferguson, who has pledged to sign it into law. If enacted, the measure would apply to individuals with annual earnings exceeding $1 million and is scheduled to take effect in 2028, with the first payments due the following year.

Supporters say the policy would impact only a small portion of the state’s population, roughly half of one percent of taxpayers, while generating billions of dollars in revenue each year. Lawmakers backing the measure say the funds would support public programs, including education, healthcare, housing initiatives, and tax credits for working families. The legislation would also remove sales taxes on certain personal care items such as shampoo.

Democratic leaders have framed the move as a response to strong political sentiment among voters. State House Majority Leader Joe Fitzgibbon said public frustration with actions by the federal government helped create momentum behind the effort.

Washington is one of the few states that does not levy a broad-based income tax, and voters have repeatedly rejected proposals to create one in statewide ballot measures over the past century.

Republican lawmakers argued the new tax will not resolve the state’s fiscal challenges and warned it could prompt businesses and wealthy residents to relocate to lower-tax states. State Sen. John Braun said the policy could significantly alter the state’s economic environment over time.

Opponents are already preparing legal and political challenges to the measure. Braun noted that state law places restrictions on taxing property at varying rates or based on income levels, a provision critics believe could be central to potential court challenges.

Meanwhile, Howard Schultz, the longtime executive behind Starbucks, announced the same day that he and his family are relocating from Seattle to Florida after more than four decades in the city. Schultz said in a LinkedIn post that he and his wife are entering a retirement phase of life, though he did not reference the tax legislation in his statement.

Backers of the tax anticipate the issue will soon face voters. Fitzgibbon said supporters expect a ballot initiative aimed at repealing the measure to appear on the statewide ballot as early as November, setting up another major political fight over tax policy in Washington.