Washington HB2292 modifies state tax rules for long-term capital gains, including those from small business stock.

Washington HB2292 amends state tax laws to redefine how long-term capital gains are calculated for tax purposes. It specifies that long-term capital gains, including those from the sale of section 1202 qualified small business stock, are subject to state tax. The bill also adjusts definitions for terms like "resident," "long-term capital gain," and "adjusted capital gain." These changes apply to gains earned on or after January 1, 2026.

Washington HB2292 modifies state tax rules for long-term capital gains, including those from small business stock.

Washington HB2292 amends state tax laws to redefine how long-term capital gains are calculated for tax purposes. It specifies that long-term capital gains, including those from the sale of section 1202 qualified small business stock, are subject to state tax. The bill also adjusts definitions for terms like "resident," "long-term capital gain," and "adjusted capital gain." These changes apply to gains earned on or after January 1, 2026.