Washington State has long been one of the last great tax havens for high-income earners in the United States — no personal income tax, no capital gains tax, and a business-friendly regulatory environment that made Seattle a natural home for the country's wealthiest tech founders and executives. That era is now ending, and the migration it has set in motion may be one of the largest wealth relocations in recent American history.
On March 12, 2026, the Washington State Legislature passed Senate Bill 6346, imposing a 9.9% tax on household income exceeding $1 million. Governor Bob Ferguson has committed to signing it, with the new levy set to take effect January 1, 2028. For the tens of thousands of Washingtonians earning above the threshold — concentrated heavily in the technology, finance, and real estate sectors — this is a seismic change that demands immediate planning.
The question many are now asking is not whether to leave, but where to go. And for a growing number of high-net-worth households, the answer is increasingly clear: Arizona, and specifically the exclusive enclave of Paradise Valley where BedBrock Developers has spent decades crafting the region's most extraordinary residences.
The Scale of the Tax — and the Urgency to Act
The numbers are stark. A Tax Foundation analysis found that Washington's new millionaire tax, layered onto existing levies, would produce a combined top rate exceeding 18% on wages and restricted stock unit vestings in Seattle — making it the highest combined rate in the United States. For a household earning $3 million annually, the new tax alone represents nearly $200,000 in additional annual liability.
- 9.9% Washington tax on income over $1 million
- 18%+ Combined top rate for Seattle tech workers — highest in the U.S.
- 2.5% Arizona's flat income tax rate — one of the nation's lowest
The bill does face likely legal challenges under Washington's constitutional requirement for uniform taxation — courts have previously struck down graduated income taxes in the state. But experienced advisors are unanimous: begin planning now regardless of the legal outcome. Even the uncertainty is accelerating departures, and the best properties in Arizona's most coveted communities will not wait for the courts to decide.
"A tax this aggressive would do real damage to Washington's economy, sending jobs and economic opportunity elsewhere."
— Jared Walczak, Senior Fellow, Tax FoundationHigh-profile departures are already underway. Howard Schultz, the billionaire former Starbucks CEO, publicly disclosed his relocation out of Washington state, noting his hope that it would "remain a place for business and entrepreneurship to thrive." He is far from alone. Wealth managers, family offices, and tax advisors across the Pacific Northwest are fielding an unprecedented volume of interstate relocation inquiries.
Why Arizona — and Why Now
Among the states competing for Washington's outbound wealth, Arizona offers the most compelling combination of tax efficiency, lifestyle, and real estate opportunity. Florida and Texas also draw relocating millionaires, but neither matches Arizona's full picture for Pacific Northwest transplants.
| State | Income Tax (Millionaires) | Estate Tax | Property Tax Rate |
|---|---|---|---|
| Washington | 9.9% on income over $1M | Up to 35% | ~1.0% |
| Arizona | 2.5% flat rate | None | 0.41%–0.44% |
| Florida | None | None | ~0.8% |
| Texas | None | None | ~1.6% |
Arizona's 2.5% flat income tax means significant annual savings compared to Washington's new rate. There is no estate tax — critical for high-net-worth families with Washington estates that face a 35% levy at death. And Arizona's property tax rates, among the lowest in the country, provide a further advantage over Texas for owners of high-value real estate.
Paradise Valley, nestled between Phoenix and Scottsdale, has long been dubbed the "Beverly Hills of Arizona" for good reason. It offers the privacy, spacious lots, and natural beauty that discerning residents crave — coupled with lower taxes, less traffic, and a standard of living that rivals any coastal enclave. For those fleeing high taxes and density, Paradise Valley offers a breath of fresh air without sacrificing a single luxury.
BedBrock Communities: Where Washington's Millionaires Are Landing
BedBrock Developers is the award-winning leader in luxury homebuilding throughout Paradise Valley and Scottsdale — and our communities are precisely the kind of exclusive, thoughtfully designed enclaves that high-net-worth relocating families are seeking. Each BedBrock community is a limited collection of residences, meticulously crafted with extraordinary attention to detail and seamlessly integrated into Arizona's stunning natural landscape.
Crown Canyon
Nestled in the heart of Paradise Valley, Crown Canyon is a secluded 30-acre mountain enclave housing just 12 exceptional luxury residences — the very definition of exclusivity. Designed by protégés of Frank Lloyd Wright, these homes float harmoniously on dramatic hillsides, celebrating the relationship between architecture and Arizona's breathtaking natural landscape. Ocotillo-lined ridges, ancient saguaros, and sweeping canyon views form the backdrop for residences that are, in every sense, works of art.
For Washington transplants accustomed to Pacific Northwest beauty, Crown Canyon offers something rare: a sanctuary that rivals the natural grandeur of home while delivering the tax advantages, privacy, and Arizona sunshine they are seeking. With only 12 homesites in a gated preserve, availability is extraordinarily limited.
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Mummy View Estates
Mummy View Estates captures the essence of modern Arizona luxury with commanding views of Mummy Mountain — one of Paradise Valley's most iconic natural landmarks. BedBrock's signature commitment to the art of fine detail is evident in every element: from the seamless indoor-outdoor living spaces to the precise architectural integration with the desert terrain. For families relocating from Washington, Mummy View Estates offers an immediate sense of arrival — the feeling that this is exactly where they are meant to be.
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Bird Street Estates
Bird Street Estates exemplifies BedBrock's talent for creating residences that feel both boldly contemporary and profoundly at home in their setting. Located in Paradise Valley with easy access to the finest dining, golf, and amenities in the region, these homes are built for the way our clients actually live — entertaining effortlessly, retreating completely, and moving seamlessly between Arizona's vibrant social scene and their own private sanctuary. For Washington executives and entrepreneurs making Arizona their primary home, Bird Street Estates delivers on every front.
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Continental Mountain Estates
For buyers seeking a more expansive desert experience beyond the confines of Paradise Valley, Continental Mountain Estates in Cave Creek offers spectacular mountain views, generous lot sizes, and BedBrock's hallmark quality at a compelling price point. This community speaks to those who want wide-open spaces, dramatic Sonoran Desert scenery, and the privacy that only a true estate setting can provide — while remaining within easy reach of Scottsdale's world-class amenities.
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The Planning Window Is Narrow — Act in 2026
Washington's millionaire tax takes effect on income earned from January 1, 2028. That gives affected residents a genuine but finite window to establish domicile in a new state before the levy applies. Establishing legal residency in Arizona requires more than purchasing a home — it requires demonstrating that Arizona is your true primary residence, and doing so takes time.
Beyond the domicile question, the luxury real estate market will not wait. BedBrock communities are limited by design — Crown Canyon has just 12 homesites, and our other enclaves are similarly exclusive. Those who begin their search in 2026 will have access to a broader inventory and stronger negotiating position than those who wait until 2027, when competition from other Washington transplants will only intensify.
- Establish Arizona residency early. Courts examine where you spend the majority of your time, where you register vehicles, vote, and maintain financial accounts. The earlier you make the transition, the stronger your domicile claim before 2028.
- Consult your tax advisor now. Washington may still attempt to tax certain income sourced in the state even after you've relocated. Your specific income structure — wages, capital gains, pass-through income — will shape your planning strategy.
- Consider Washington's estate tax. At up to 35% on estates above $9 million — the highest rate in the United States — relocating before death can protect substantial generational wealth. Arizona has no estate tax.
- Engage BedBrock before inventory tightens. Our communities are limited in number by design. Early engagement means first access to available homesites and the ability to commission a fully custom residence with adequate build time.
- Think comprehensively. BedBrock offers not just luxury homebuilding but architecture, landscaping, real estate, and concierge services — a complete transition partner for families making Arizona their permanent home.
Beyond the Numbers: The Arizona Life
Tax savings matter enormously at this level of wealth — but they are rarely the only reason families choose Arizona. Paradise Valley offers something that the Pacific Northwest, for all its beauty, increasingly cannot: a high quality of life without the density, the politics, and the escalating cost of living that have come to define Seattle and its surroundings.
Golf at some of the world's finest private courses. Fine dining that rivals any coastal city. Cultural institutions, art galleries, and a growing philanthropic community. Top-ranked private and public schools for families with children. And a 300-day-a-year outdoor lifestyle that, once experienced, becomes very difficult to give up. For Washington's high-net-worth residents, Arizona is not a consolation prize — it is an upgrade.
Notable established communities in the broader Arizona market — including Silverleaf, Estancia, and Desert Mountain — further demonstrate the depth of luxury lifestyle available in the region. But for those who want a home truly built to their standard, by the most decorated luxury builder in Paradise Valley, BedBrock's communities are the destination.
