Seattle’s tax collections have increased substantially over the past decade, with businesses shouldering a growing share of the city’s tax burden, according to a September 2026 analysis prepared by ECONorthwest for the Downtown Seattle Association and Seattle Metropolitan Chamber of Commerce.
The report found that Seattle’s total tax collections rose from approximately $900 million in 2013 to $2.8 billion in 2026. Between 2013 and 2025, tax collections increased 172%, compared with 31% population growth, 23% employment growth and 50% inflation. After adjusting for inflation, taxes still increased 81%.
Businesses accounted for an estimated 68% of Seattle’s tax revenue in 2026, or approximately $1.65 billion, up from about 55% in 2016. Of the $1.08 billion increase in tax collections since 2018, the report estimates that $892 million, or 83%, came from businesses.
The analysis identifies three policy changes contributing to the shift: the payroll expense tax introduced in 2021, the social housing tax approved in 2025 and an increase in the business and occupation tax under Seattle’s 2026 Seattle Shield legislation.
The report also found that the newest taxes rely heavily on a relatively small number of companies. Fewer than 500 businesses pay the payroll expense tax, while approximately 220 taxpayers reported a social housing tax obligation in 2025. The analysis estimates that fewer than 20 companies collectively account for roughly $356 million in annual revenue from these taxes.
Seattle’s employment trends have also diverged from those elsewhere in King County. The report estimates that the city lost approximately 24,000 jobs between March 2020 and March 2025, while the remainder of King County gained about 21,000 jobs.
The Downtown Seattle Association argues that the city’s growing reliance on a limited number of large businesses could create long-term risks for public revenue and economic competitiveness. However, the report does not establish that tax policies caused Seattle’s job losses. It presents the employment and tax trends as related developments rather than demonstrating a direct causal relationship.
