Large Employers Subject to Seattle Head Tax

Seattle has enacted an annual $275 employee tax on large employers. The head tax is on full-time employees and full-time equivalent employees.

Seattle intends to use the tax revenue to help address the city’s homelessness problem.

Annual Head Tax

The annual tax amount is $275 per full-time equivalent employee in the city.

Businesses Liable for Tax

The tax applies to businesses with more than $20 million of annual revenue in the city.

Tax Begins in 2019

The tax is effective from January 1, 2019, through December 31, 2023.

The City Council’s news release on the tax is available at http://council.seattle.gov/2018/05/14/seattle-council-passes-tax-on-business-to-help-address-homelessness/.

Seattle Ordinance No. 125578, effective as noted

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