Capital gains excise tax ruled constitutional, returns and payments due by April 18, 2023
The Washington State Supreme Court has ruled that the excise tax on the sale or exchange of long-term capital assets is constitutional and valid. As such, the Department of Revenue will continue collecting the tax, which is due April 18, 2023.
How-to videos and additional resources
Filing extensions
Individuals who receive a filing extension for their federal income tax return and request an extension for their state capital gains return by the due date are entitled to the same filing extension for their Washington capital gains tax return. However, a filing extension does not extend the due date for paying the capital gains tax due.
Late returns and payments
Penalties will apply to late returns. Additional penalties and interest will apply to late payments.
Background
On March 24, 2023, the Washington State Supreme Court upheld that the capital gains tax is a valid excise tax under Washington law, overturning the previous Douglas County Superior Court ruling. Learn more.
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