Luxury Aircraft Tax harms Washington’s Competitiveness

In 2025, the Washington Legislature adopted a luxury aircraft tax that imposes an additional 10% tax on the sale or use of an aircraft over $500,000. The tax takes affect in April 2026.

• New Tax is Indiscriminate: Impacts volunteer healthcare and charity organizations, emergency operations, agriculture and timber operators, flight training programs, recreational pilots, and all business users.
• Migration of Investment: Aircraft owners are highly mobile and choosing to purchase and register aircraft in neighboring states with lower tax burdens. Early signals from the tax have created uncertainty that affects fleet planning and long-term hangar development.
• Economic Leakage: High-value aircraft represent substantial maintenance, storage, and service spending—much of which is being diverted out of Washington. Reduced in-state aircraft operations results in fewer contracts for maintenance shops, avionics firms, and fixed-base operators. Reports so far include:
• Client moving King Air out of state and selling home.
• CJ3 Gen2 deal immediately rescinded.
• A CJ3+ customer is selling his aircraft.
• NetJets share-owner is moving residence to Nevada.
• Denali prospect froze conversations.
• SEL is moving jet to Idaho.
• Citizen Air froze $1.5 million in new investments in Port Angeles area.
• Modern Aviation froze conversations with prospective client.
• Fortive customer backed out of deal to lease hangar for an $80 million aircraft.

Why It Matters:

According to WSDOT’s Aviation Economic Impact Study, there are 134 public use airport systems across the state

These airports provide 407,042 jobs and $26.8 billion in labor income

According to WSDOT, aviation supports $107 billion in economic impact across Washington State

According to a membership survey by AOPA, more than half of respondents are actively considering relocating their operations or residency, costing the state about $75 million per year in lost economic activity

Canada repealed their luxury aircraft tax in 2025 because it negatively impacted employers and the economy

The Pacific Northwest Business Aviation Association (PNBAA) was first established in the late 1990’s and made up of business aircraft and cargo operators, flight schools, and other general aviation interests around the Seattle area. PNBAA focuses on business aircraft operators and those who support business aviation in this region.

For more information contact: Mike Ennis, PNBAA Lobbyist, C:360-367-1743, Mike.Ennis@ennispublicaffairs.com