Quick answer: Seattle’s JumpStart payroll expense tax applies in 2026 if Seattle payroll expense for 2025 was $9,074,409 or more and at least one employee is paid $194,452 or more in 2026. Both tests must be met. The tax is employer-funded, cannot be deducted from employee pay, and is paid quarterly. The thresholds are adjusted for inflation each year, so confirm the current figures with the City.
Last updated: November 11, 2026
Who owes the Seattle JumpStart tax?
Employers are subject to the tax when their 2025 Seattle payroll expense meets the threshold and at least one employee’s 2026 pay meets the high-earner level. The rate depends on your total Seattle payroll and each employee’s pay tier, with 2026 rates reported between 0.746% and 2.557%.
How is it paid?
The tax is filed and paid quarterly. Keep your quarterly payroll records ready so you can calculate the amount due each period.
How to check if you’re affected
- Total your 2025 payroll expense for all Seattle employees.
- Compare the total with $9,074,409.
- Check whether any employee’s 2026 pay reaches $194,452.
- If both conditions apply, confirm your filing requirements with the City before the next quarterly due date.
Frequently asked questions
Can the tax be passed to employees?
No. The tax is employer-funded, and employers cannot deduct it from employees’ compensation.
Where can I confirm the rules?
Check the Seattle Municipal Code (SMC chapter 5.38) and the City’s director’s rules. The figures here come from secondary guides and should be confirmed against the City’s current publications.
Related services
For Seattle businesses that need help with payroll tax, see our Seattle bookkeeping services.
