Washington state's newly enacted 9.9% income tax on earnings above $1 million, set to take effect in January 2028, has prompted wealthy residents to relocate to low-tax states, particularly Florida. Luxury real estate experts report that significant property transactions are already occurring as high earners seek to escape what they view as an unfavourable tax environment. This migration reflects broader concerns about the state's competitiveness and appeal to affluent individuals and business leaders.

A recent survey by the Association of Washington Business found that 24% of respondents are considering relocating their businesses—more than triple the rate from 16 months ago—whilst 55% of business leaders are considering moving their personal residences elsewhere. The financial incentive is substantial: Florida offers 0% income tax and 0% capital gains tax, compared with Washington's 9.9% income tax above the $1 million threshold and 7% capital gains tax. High-profile departures reflect these trends, with Starbucks investing $100 million in Nashville, Tennessee, and technology leaders citing not only tax advantages but also safety, education quality, and lifestyle considerations.