Leaving Washington State: Redomestication as a Legitimate Tax Minimization Strategy?

Washington State’s proposed 9.9 percent tax on income above $1 million does not take effect until 2028, but the planning window is already open. In this presentation, attorney and CPA Chad D. Cummings examines the mechanics of Senate Bill 6346, including the marriage penalty embedded in the statute, the effective tax rates at various income levels, and why reducing adjusted gross income becomes central for residents who intend to remain in Washington. The discussion then addresses a critical distinction many business owners misunderstand: redomestication of a company out of Washington to a no-tax state is a valid legal tool, but it does not eliminate Washington tax exposure if the owner continues to live and operate within the state. The presentation explains what constitutes a genuine change of domicile, the factors tax authorities evaluate when challenging residency claims, and why a total, documented break is required to eliminate liability. Finally, it outlines the limited timeframe available to implement income, structural, and relocation strategies before the tax begins to accrue. Learn more: https://www.cummings.law/redomestication/