Washington State Imposes 10% Tax On Luxury Aircraft

Washington state has introduced a new tax policy imposing a 10% tax on the sale of noncommercial aircraft valued at more than $500,000.

Washington state Governor Bob Ferguson signed the legislation, Bill 5801, that is set to go into effect beginning April 1, 2026.

Several aviation industry groups have voiced strong opposition to the bill, arguing it could harm businesses, agricultural operators and volunteer pilots who provide essential medical transport services across Washington. In a letter submitted earlier this year, these groups warned the tax could have “sweeping, unintended consequences” for the state’s economy, transportation infrastructure and public safety. They emphasized that the tax would not only affect luxury assets but also a broad range of critical aviation users.

AOPA