A surge in luxury home listings across Washington state is raising fresh concerns that the Democrats’ new income tax is already driving wealthy residents toward the exits.
Data obtained by The Center Square from the Northwest Multiple Listing Service shows that the number of homes priced at $2 million or more spiked immediately after state lawmakers approved a new income tax targeting millionaires, fueling fears of a growing high-earner exodus.
On March 12, the day after the Legislature passed the tax, 53 high-end homes were listed for sale. On that same date one year earlier, there were just 32 listings, a 65 percent increase.
The movement didn’t come out of nowhere. On February 4, the day the income tax proposal was first introduced in the state Senate, 16 luxury homes were listed compared to 11 on the same day in 2025, an early signal that affluent homeowners were already reacting.
Realtors told the outlet that some clients moved quickly to list multimillion-dollar properties specifically in response to the tax’s passage, suggesting the policy is already reshaping behavior at the top end of the market.
That concern was echoed bluntly by Robert C. Wallace, chairman of Wallace Properties, Inc., who described what he sees as a growing flight of wealth out of the state.
“There has been a trickle of friends relocating since the huge estate tax increase some years ago, but after last year’s bump to 35%, it has become a flood,” Wallace wrote in a LinkedIn post. “I swear the majority of my friends are already taking steps to legally change their domicile.”
He didn’t mince words about who he believes is responsible. “Most [Democrats] know full well the damage they’re causing to the state’s economy for decades to come,” Wallace said, accusing lawmakers of prioritizing political pandering over long-term economic health.
Last year, Gov. Bob Ferguson signed the largest tax increase in Washington state history which included increased capital gains taxes and estate tax.
The ripple effects may extend beyond housing. In separate internal discussions tied to efforts to bring the NBA back to Seattle, stakeholders raised concerns that the millionaires tax could complicate recruiting top-tier talent, while noting that many high earners are already gravitating toward lower-tax states like Florida.
