SEATTLE, Oct. 5, 2026 — Seattle’s tax collections have grown substantially faster than the city’s population, employment and inflation over the past decade, according to a new analysis commissioned by the Downtown Seattle Association and the Seattle Metro Chamber.

The City of Seattle Tax Analysis, prepared by independent economic consulting firm ECOnorthwest, examines the growth and composition of city taxes and how the tax burden has shifted over time. Between 2013 and 2025, Seattle taxes increased 172%, compared with 31% population growth, 23% employment growth and 50% inflation, according to the analysis.

The analysis also estimates that businesses will account for 68% of Seattle city taxes in 2026, approximately $1.65 billion, compared with about 55% in 2016. The shift accelerated beginning in 2021 with the implementation of the city’s payroll expense tax and continued with the voter-approved social housing tax in 2025 and the Seattle Shield business and occupation tax increase in 2026.

“Seattle has experienced tremendous growth over the past decade, and this analysis gives us a clearer picture of how the city’s tax system has grown and changed along with it,” DSA President & CEO Jon Scholes said. “What stands out is the widening gap between tax growth and growth in jobs and population, along with an increasing reliance on businesses for city revenue. At a time when Seattle is working to grow jobs and attract investment, understanding those dynamics is essential to our economic future.”

“Seattle’s tax collections are growing far faster than its population, jobs or inflation. Employers are carrying more of that burden. That trajectory is not sustainable,” “The question cannot always be how to collect more money. It must be how to deliver better results with the money we already have and build a tax structure that helps our economy grow.”

Among the report’s key findings:

  • The estimated business share of city taxes has increased. Businesses accounted for approximately 55% of Seattle tax revenue in 2016, 63% in 2021 and an estimated 66% in the city’s adopted 2026 budget.
  • New Council- and voter-approved taxes have generated approximately $2.7 billion narrow bases and have generated approximately $2.5 billion since 2018. The analysis includes the sweetened beverage tax, short-term rental tax and payroll expense tax, payroll expense tax and social housing tax. It estimates that 75% of payroll expense tax revenue comes from 10 companies. The city’s Office of Economic and Revenue Forecasts reports that the 10 largest payers accounted for 73% of payroll expense tax revenue in 2025.
  • Seattle’s tax mix has changed substantially. Property, sales, business and occupation and utility taxes — described in the analysis as the city’s “core” taxes — represented about 83% of tax revenue in 2013. That share decreased to 52% in 2026.
  • Voters have approved $5.2 billion in property tax lid lifts, bond levies and Transportation Benefit District taxes covering 2013 through 2026. That revenue supports services including libraries, affordable housing, preschool and family services, transportation, elections and capital projects.
  • Taxes relative to employment have increased more quickly than taxes relative to population. In inflation-adjusted terms, the analysis calculates approximately $2,300 in city tax collections per Seattle employee in 2025, compared with $940 per resident. The analysis calculates approximately $2,490 in business taxes per Seattle employee in 2025, compared with $937 in non-business taxes per resident. The report notes that these figures should not be interpreted as taxes directly paid by individual workers or residents.
  • Seattle’s newest taxes rest on a narrow base. Fewer than 500 companies pay the payroll expense tax and about 220 pay the social housing tax. The 10 largest payers of those two taxes together account for roughly 23% of all business taxes the city collected in 2025.

The analysis comes as Seattle confronts a changing economic landscape. DSA’s report, Seattle’s Shifting Employment Landscape, released last month, found persistent challenges related to employment and office vacancy even as downtown continues to experience gains in visitation, residential population and public safety.

“Seattle’s tax structure looks substantially different today than it did a decade ago,” ECONorthwest partner/senior policy advisor Morgan Shook said. “The share of revenue coming from core taxes has declined, new taxes have added significant revenue, and businesses now account for an estimated two-thirds of city tax collections. This analysis is intended to put those changes into context and provide a clearer picture of how the city’s revenue system has evolved.”

ECOnorthwest originally prepared the tax analysis for DSA and the Chamber in 2023 and updated it in September 2026. According to the research statement, the analysis draws on city of Seattle budget documents, the Seattle Office of Economic and Revenue Forecasts, Washington state Department of Revenue data, King County Assessor information and other government sources. ECOnorthwest is solely responsible for the content of the analysis.

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About the Downtown Seattle Association

Established in 1958, the Downtown Seattle Association is a nonprofit membership organization whose mission is to create a healthy, vibrant downtown for all. By advocating on issues including transportation, economic development and the urban experience, DSA works to ensure that downtown remains a great place to live, work, shop and play for all. DSA also manages the Metropolitan Improvement District, a business-improvement area spanning 300 square blocks downtown.

About the Seattle Metro Chamber

The Seattle Metropolitan Chamber of Commerce (Seattle Metro Chamber) is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,600 members to promote inclusive economic prosperity. Founded in 1882, the Chamber represents a regional workforce of approximately 750,000.

About ECOnorthwest

ECOnorthwest has been providing independent economic, financial and policy analysis since 1974. The firm’s interdisciplinary approach combines economics with planning, finance, and data science to help policymakers and business leaders work through complex questions about communities and the economy. ECOnorthwest has completed more than 3,800 projects for over 2,000 clients across 45 states, with offices in Portland, Seattle, Bend, Los Angeles and Denver.