While tax debates in Washington suck up media attention, several U.S. states are quietly considering hefty tax hikes for 2026 and beyond.

For expats and nomads abroad, now is the time to prepare.

The Billionaire Tax Act is a ballot measure heading toward voters in November that would impose a one-time 5% tax on net worth above $1 billion, retroactive to January 1, 2026.

Beyond the billionaire optics, California remains one of the most aggressive states in the country when it comes to pursuing former residents, expats, and remote workers who haven't cleanly severed ties. If you have any remaining California connection, financial or otherwise, this is not a state to play games with.

Washington had zero income tax for decades. That era is over. The governor signed a law in March 2026 imposing a 9.9% income tax on household earnings above $1 million. For expats and nomads with Washington residency, you still have time to prepare your domicile move. The new law takes effect January 1, 2028, with first payments due in 2029.

The state has maintained a flat top rate of 5.75% for generations. Proposed legislation for 2027 would introduce an 8% rate on income above $600,000 and a 10% rate on income above $1 million.

A separate bill would add a 3.8% net investment income tax on capital gains, dividends, rental income, and passive business income for earners above $500,000. If both pass together, Virginia's effective top marginal rate could reach 13.8%, which would put it higher than California.

Rhode Island is considering a 3% surtax on incomes over $1 million, which would push its top rate from 5.99% to 8.99%.

Michigan has a ballot campaign targeting a 5% surcharge on individuals earning above $500,000 that was suspended temporarily but is expected back on the 2028 ballot.

Colorado is putting a constitutional amendment to voters that would raise rates on earners above $600,000, climbing to 9.2% for those above $10 million, driven by a budget shortfall exceeding $1.5 billion.

And then there's New York City, which is in a category of its own. A proposal to raise the city's top income tax rate from 3.9% to 5.9%, stacked on top of state and federal taxes, would push the combined top rate for NYC residents close to 54%.

For expats and nomads living abroad, here's the thing: none of this needs to apply to you.

Legally establishing your domicile in a zero income tax state like Florida, Texas, or Nevada is a total no-brainer if you’re overseas.

The catch is timing. Changing domicile requires documentation, a genuine severance of old ties, and enough lead time to do it properly. Waiting until a new tax law is three months from taking effect is not a plan.

The expats who get this right are the ones who start the process now, not the ones scrambling after the ballot results come in.

Save an extra 4%-14.8% of your annual income with tax-savvy strategies. Change your domicile in the US: let Savvy Nomad help with the hassle.