Learn more about the Seattle Payroll Expense Tax
- Marla Beaver
- 9 hours ago
- 3 min read
Register today to attend this free one-hour online training
Wednesday, January 21, 2026, at 11:00 a.m. PST
Please be aware that written communications and webinar registration information - including email addresses, names, and business affiliations - are potentially subject to public disclosure, in whole or in part, pursuant to the Washington State Public Records Act, RCW 42.56 et seq. Visit our Payroll Expense Tax web page for more information. |
Each year the Payroll Expense Tax thresholds may increase based on the annual Consumer Price Index. See the thresholds.
Businesses with less in payroll expense do not need to file or pay this tax, but they are still responsible for filing and paying other general business taxes that apply to their business.
On Nov. 21, 2023, the Seattle City Council approved legislation that increases the tax rates in each category, depending on the total payroll expense of the business. See the new tax rates that were effective Jan. 1, 2024.
To learn more about the Seattle Payroll Expense Tax, register here for the free online Q1 2026 Seattle Payroll Expense Tax Training that the city is offering on January 21, 2026 at 11:00 a.m. PST.
Find out who is subject to the tax
Learn how to determine your tax liability
Understand tax filing requirements
Ask questions about the tax filing and payment process
Please be aware that written communications and webinar registration information - including email addresses, names, and business affiliations - are potentially subject to public disclosure, in whole or in part, pursuant to the Washington State Public Records Act, RCW 42.56 et seq.
Download the Payroll Expense Tax form
Select the year for the periods you wish to file. Use the Payroll Expense Tax Form to file for 1st through 3rd Quarter and use the Payroll Expense Tax Packet to file for 4th Quarter.
2025
2025 Payroll Expense Tax Form - due quarterly beginning April 30, 2025.
Q4 2025 Payroll Expense Tax Packet - for Q4-2025, due Jan. 31, 2026.
2024
2024 Payroll Expense Tax Form - due quarterly beginning April 30, 2024.
Q4 2024 Payroll Expense Tax Packet - for Q4-2024, due Jan. 31, 2025.
2023
2023 Payroll Expense Tax Form – due quarterly for Q1-Q3
Q4 2023 Payroll Expense Tax Packet – for Q4-2023, was due Jan. 31, 2024
2022
2022 Payroll Expense Tax Form – due quarterly for Q1-Q3
Q4 2022 Payroll Expense Tax Packet – for Q4-2022, was due Jan. 31, 2023
2021
2021 Payroll Expense Tax Form - was due Jan. 31, 2022. For this year, please file reporting all payroll expense for Q1-Q4 2021. This was the year this tax was first implemented.
File online or send original form via U.S. Mail (including payment and postmarked by the due date) to:City of Seattle-LTAPO Box 34214Seattle, WA 98124-4214
The payroll expense tax in 2025 is required of businesses with:
$8,837,302 or more of payroll expense in Seattle for the past calendar year (2024), and compensation in Seattle for the current calendar year (2025) paid to at least one employee whose annual compensation is $189,371 or more.
Director's Rule 5-980 provides information and examples to determine whether your business is subject to the Payroll Expense Tax and how to calculate your tax payment.
If you have questions, please email tax@seattle.gov or call our general information line at (206) 684-8484.
Read the Code SMC Chapter 5.38
This tax is imposed in addition to any license fee or tax imposed by the City, State or other government agency.
The payroll expense tax is in addition to the City of Seattle's fees for business license tax certificates and both the Washington State and City of Seattle B & O tax.
Payroll Processing CompaniesIf you are a payroll processing company remitting the Seattle Payroll Expense Tax on behalf of clients, you will need to submit a Taxpayer Authorization Form with each initial tax filing.A signed authorization will not need to be submitted each quarter. We are requiring one authorization per business/client. We may reach out at any time and request updated documentation. The signed authorization form should be submitted with the next manual filing and payment for each client. If you are filing online using the FileLocal system, you do not need to submit this authorization form. Filings without a signed authorization form may be rejected and returned. If you have any questions, please contact us at tax@seattle.gov.
