New laws taking effect as we start 2026

Thanks to our friends at the Association of Washington Business for this list of the Multiple new laws and taxes that took effect on January 1st, including: 

• Unemployment insurance benefits for striking workers.
• A B&O tax surcharge on Washington companies with over $250 million in taxable income. The 0.5% surcharge applies to income over the $250 million threshold and expires at the end of 2029.
• Multiple transportation tax and fee hikes: higher truck and passenger vehicle weight fees, rental car taxes, vehicle sales tax, and a new luxury vehicle levy. Tire replacement fees also increased from $1 to $5.
• A number of tax preferences were repealed, including a tax exemption on precious metals. Bipartisan bills have already been introduced aiming to restore this tax break during the 2026 legislative session that starts on Monday, January 12th. 

State minimum wage rises again: Washington’s minimum wage is now $17.13 an hour, up from $16.66 in 2025, the highest in the nation. The salary threshold for overtime exempt workers also went up. To be exempt, an employee must be paid at least $1,541.70 a week ($80,168.40 a year) — this change applies to both large and small businesses.