2025 Social Housing Tax Notice
On Wednesday, March 12, 2025, at 10:30 a.m. City Finance invites all stakeholders to participate in a webinar during which the city will present information about the new Social Housing Tax. You may register for the stakeholder meeting by clicking this link.
Social Housing Tax
Voters Approve Social Housing Tax
In a special election held February 11, 2025, the voters of the City of Seattle approved the Social Housing Tax. The tax is imposed on businesses at a tax rate of 5% on compensation that exceeds $1 million paid in Seattle to an employee. The new tax went into effect January 1, 2025.
For tax year 2025, Seattle businesses subject to the Social Housing Tax will file their return and tender tax due by January 31, 2026. Thereafter, businesses subject to the Social Housing Tax will file and pay the tax on a quarterly basis.
At this time, businesses are invited to attend an upcoming webinar that will help educate taxpayers about the tax. The stakeholder meeting will allow taxpayers an opportunity to provide comments which the city will consider in its development of a draft rule. Once a draft rule is complete, City Finance will schedule a formal rule hearing prior to the adoption of a final rule addressing the administration of the new tax.
You may view the text of the Social Housing Tax by clicking this link.