New Washington Laws Taking Effect Jan. 1 Will Impact Taxes, Fees, and Workers
A broad set of new Washington state laws takes effect on , affecting worker benefits, business taxes, transportation fees, consumer protections, and environmental policy. Other measures passed this year will phase in later, as lawmakers prepare to return to Olympia for a 60-day legislative session beginning January 12.
One of the most debated new laws allows workers on strike to receive state unemployment benefits. Striking employees may collect up to six weeks of benefits, beginning two to three weeks after a strike starts. The law also applies to employer lockouts and expires in 2035. Supporters say it provides stability for workers, while opponents warn it could encourage more strikes and raise costs for businesses.
New Business and Technology Taxes
To help address a major budget shortfall, lawmakers approved new taxes targeting large companies. Businesses with more than 250 million dollars in taxable income will pay an added 0.5 percent business and occupation tax on income above that level through 2029. The state also increased its advanced computing surcharge on large technology companies, raising the rate to 7.5 percent and lifting the annual cap to 75 million dollars. Revenue from that tax is dedicated to higher education.
Several tax preferences were also repealed, including exemptions on precious metals and credits tied to energy assistance and certain business services. The changes are expected to raise about 50 million dollars during the current two-year budget cycle.
Transportation Taxes and Vehicle Fee Increases
Transportation-related fees are also increasing. In addition to a gas tax hike that took effect earlier this year, rental car taxes rise to 11.9 percent for one year before settling at 9.9 percent. Vehicle weight fees for cars and trucks are increasing, the vehicle sales tax assessment climbs to half a percent, and a new luxury vehicle tax applies to the portion of a sale price above 100 thousand dollars.
Drivers will also see higher tire replacement fees, RV sales fees, and registration and title filing costs. Some additional transportation fees will take effect in 2026.
The state is expanding its tobacco tax to include newer nicotine products such as nicotine pouches, aiming to capture products previously exempt from excise taxes. Lawmakers declined to approve broader bans on flavored tobacco or higher cigarette taxes.
Environmental and Consumer Protection Changes
Environmental rules are also changing. The fee for plastic shopping bags rises from 8 cents to 12 cents, while the paper bag fee remains unchanged. A planned increase in plastic bag thickness has been delayed until 2028.
A new right-to-repair law requires manufacturers of electronics to provide parts, tools, and documentation to independent repair shops for devices sold in Washington after mid-2021. The law is enforceable under the state Consumer Protection Act.
Accessibility and ID Updates
Other changes taking effect include an option for residents to add their blood type to state IDs for a small fee, and new requirements for movie theaters to provide closed captioning and open-caption screenings.
Supporters say the new laws modernize state policy and stabilize funding, while critics argue the added taxes and fees will increase costs for consumers and businesses.
For complete story, go to New Laws and Taxes in 2026
ScreenCrush’s Most Anticipated Movies of 2026
More From KW3
