Seattle Shield B&O Tax Changes Proposition 2 Stakeholder Meeting
Thursday, November 20, 2025, at 11:00 a.m. PST, the Office of City Finance invites stakeholders to attend a webinar to provide feedback and ask questions about upcoming changes to the Seattle B&O tax effective January 1, 2026.
Business Taxes
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The Seattle B&O tax is applied to the gross income that businesses earn. It is sometimes called the Seattle business and occupation tax or gross receipts tax. Depending on your situation, filing your Seattle taxes may be relatively simple or fairly complex. The Seattle business license tax is not the same as the Washington State B&O tax. You must file your Seattle taxes separately from your state taxes. To learn more about the state B&O tax, visit the Washington State Department of Revenue website.
The Seattle B&O tax is due and payable in quarterly installments. However, if the Director has assigned to you an annual filing status you must file your return and submit payments due no later than April 30 of the year following the applicable tax year. If you need to file a 2025 annual tax return and have revenue that is below the $100,000 threshold applicable for that tax year, you can use this tax form.
Effective January 1, 2026, the Seattle B&O tax threshold will increase from $100,000 to $2 million. If your business generates annual taxable revenue less than the $2 million threshold, you may not owe B&O tax for that calendar year. However, even if you owe no B&O tax for the tax year or engage in no business activity, you must file and report your annual gross revenue to the city.
The Seattle B&O tax will also include a new standard deduction of $2 million per calendar year. The standard deduction will be available to all taxpayers whose taxable revenue is above the annual taxable threshold. The standard deduction is separate from the threshold.
You may learn more about the details of the Seattle B&O tax changes by visiting the Seattle Shield B&O Tax Changes web page.
See all City business tax rules.
Download Seattle Shield Ordinance 127259 and Seattle Shield Ordinance 127267.
Overview
If you do business in Seattle, you must:
- Have a Seattle business license tax certificate.
- File a business license tax return.
- Pay any tax due.
You pay this tax if your annual taxable gross revenue is $100,000 or more. You can file and pay online using a credit card or an electronic check (e-check). Please note: There may be a fee to file electronically.
You do not pay the tax if your annual taxable gross revenue is less than $100,000 or if you have no business activity for the year. You are still required, however, to report your gross revenue, even if zero, to the City of Seattle. In this case you can file online or over the phone. To file, call (206) 684-8484 and follow the voice prompts. You will need your customer number and obligation number.
Need to file for previous years? Use one of these forms:
Tax rate
The Seattle business license tax rate varies by business type. For more information, see tax rates and classifications.
How the tax works
Your gross revenue determines the amount of tax you pay. To calculate this amount, multiply your taxable amount by the tax rate.
For example, if the retail sales tax rate is 0.00222 (.222%) and the business has a taxable amount (gross revenue - itemized deductions - standard deduction) of:
- $100,000, the business pays $342.
- $1,000,000, the business pays $3,420, and so forth.
Read the code
You can read the Seattle Municipal Code (SMC) for legal details about the Seattle business license tax.
SMC Chapter 5.45 covers the business license tax.
Seattle business tax rule 5-006 provides further information.
Due dates
The date your taxes are due depends on your reporting status. Your reporting status indicates how often you are required to file taxes and is listed on your business license. You can also find it online by accessing your FileLocal account. If you do not know your reporting status, contact us.
This table summarizes Seattle business license tax due dates for each reporting status. Prior to and including tax year 2019, annual tax returns were due on Jan. 31.
| Reporting status | Period | Tax return due date |
|---|---|---|
| Annually | Calendar year ends Dec. 31 | April 30 |
| Quarterly | 1st quarter ends March 31 | April 30 |
| 2nd quarter ends June 30 | July 31 | |
| 3rd quarter ends Sept. 30 | Oct. 31 | |
| 4th quarter ends Dec. 31 | Jan. 31 | |
| Monthly | March 31, for example | Last day of the following month: April 30, for example |
Late fees and interest
You pay a penalty fee for filing taxes after the due date. The penalty fee increases the longer you wait to file. Current rates are reflected in the table below.
| Tax return filed | Late fee amount ($5 minimum) |
|---|---|
| 1st month after the due date | 9% of tax owed |
| 2nd month after the due date | 19% of tax owed |
| 3rd month after the due date or anytime after | 29% of tax owed |
In addition to late fees, you must also pay interest if you file late. Interest accrues from the due date until the date paid. The 2024 interest rate is 6 percent. The 2025 interest rate is 7 percent. The interest due is equal to:
(annual interest rate / 360) x (tax owed amount) x (number of days late)
You will not be charged a late fee or interest if you do not owe any tax. But you must still file a tax return.
See a list of interest rates for assessments and refunds over the years.
If you have any questions, please call our general information hotline at (206) 684-8484 or email tax@seattle.gov.
Request a hard copy form
You do not need to fill out a hard-copy form if you file taxes online. For more information about filing online, see Manage your account online.
If you choose not to file your taxes online, we will send you a blank tax form. Do not reuse an old tax form to file. We cannot process old tax forms because each uses a unique bar code.
If you need a blank business license tax form, please fill out the form below or contact us directly at (206) 684-8484 or tax@seattle.gov, and we will mail or fax you a form.
Special Requests
Taxpayers may have circumstances that lead to a request for special consideration. Some of those types of requests are listed below. Click on the appropriate form, fill in the required information, and submit the form online. There are no guarantees that these special requests will be granted.
Filing Extension Request - if you wish to file later than the required tax filing due date. Payment is still due by the due date and subject to interest.
Waiver Request - if you wish to file a waiver
Time Payments Request - if you wish to pay the taxes you owe over time instead of all at once. Typically, time payments are not allowed to extend beyond 12 months.