Seattle Taxes Surge 172% as Businesses Shoulder Growing Burden

Seattle business leaders are sounding the alarm over the city's growing tax burden as new economic data show Seattle losing thousands of jobs while businesses shoulder an increasing share of city taxes. A new tax analysis commissioned by the Downtown Seattle Association and Seattle Metropolitan Chamber of Commerce found Seattle's tax collections increased 172% between 2013 and 2025. That growth dramatically outpaced Seattle's population, employment and inflation over the same period. According to the analysis, Seattle's population increased 31% between 2013 and 2025, employment grew 23% and inflation increased 50%, compared with the 172% increase in city tax collections. Businesses are also paying an increasingly large share of Seattle's taxes. The analysis estimates businesses will account for approximately 68% of Seattle city tax collections in 2026, or about $1.65 billion. That's up from approximately 55% of city tax revenue in 2016. The analysis points to newer taxes including Seattle's payroll expense tax, commonly known as the JumpStart tax, and the social housing tax as part of the shift toward greater reliance on business tax revenue. The new tax analysis comes as Seattle faces significant concerns over job losses and economic competitiveness. Separate Downtown Seattle Association research found Seattle lost more than 18,000 jobs between 2024 and 2025. Approximately 13,000 of those lost jobs were located downtown, accounting for roughly 70% of Seattle's overall employment decline during that period. Bellevue, meanwhile, added more than 5,000 jobs. Downtown Seattle Association President and CEO Jon Scholes says Seattle's tax structure has become increasingly reliant on a relatively small number of major employers and is not competitive with other places businesses can locate within the Puget Sound region. “We are sounding the alarm here for our city leaders,” Scholes said while discussing Seattle's tax structure, economic activity and job growth. Business leaders argue Seattle's growing tax burden risks pushing jobs and investment toward neighboring cities such as Bellevue and Redmond. The new analysis also calculates that inflation-adjusted business taxes per Seattle employee reached approximately $2,490 in 2025, compared with approximately $937 in non-business taxes per resident. The report notes that those figures should not be interpreted as taxes directly paid by individual workers or residents. Seattle's business-tax structure includes the JumpStart payroll expense tax, business and occupation taxes, the social housing tax and a variety of other specialized city taxes. The latest findings come as Seattle Mayor Katie Wilson and the City Council consider the city's next budget. Business leaders have welcomed Wilson's decision not to rely on additional business taxes in her proposed budget, but they are urging Seattle officials to focus on economic competitiveness, job growth and the city's existing tax structure. The debate raises a larger question for Seattle: Can the city continue increasing its reliance on business taxes while competing with Bellevue, Redmond and other communities for employers, investment and jobs? Today's report examines Seattle business taxes, the JumpStart tax, Seattle job losses, Downtown Seattle, Bellevue job growth, the Seattle economy, Mayor Katie Wilson, the Downtown Seattle Association, the Seattle Metro Chamber and Seattle's changing business climate. Follow The Center Square for continuing coverage of Seattle, Washington's economy, taxes, businesses, jobs, government spending and public policy. Want the next important update by text? Get the Washington state government and policy developments worth your attention sent straight to your phone. Text TCSWA to 206-944-3016 or sign up here: https://joinsubtext.com/c/thecentersquarewa Msg & data rates may apply. #Seattle #SeattleTaxes #SeattleBusiness #SeattleJobs #SeattleEconomy #DowntownSeattle #Bellevue #BusinessTaxes #JumpStartTax #KatieWilson #WashingtonState #WashingtonEconomy #WashingtonNews #TheCenterSquare #WashingtonInFocus