SeaTac B&0 Tax

The Business & Occupation (B&O) Tax is not new to SeaTac. It was adopted by City Council in December 2025, and this page explains what it is, why it exists, and how the City is working to get it right.


Why the B&O Tax Exists

The B&O tax is part of a broader strategy the City is using to close a $6 million structural budget gap for the 2027-2028 biennium, without raising property or utility taxes on residents. Council adopted the tax in December 2025 as one of four tools in that plan alongside expense management, budget decisions, and the proposed Public Safety Sales Tax, Proposition 1 on the November 2026 ballot.

Rather than lock in every detail at once, Council chose to adopt the tax and take the time to get it right while getting input from the businesses it affects most.


Getting the Numbers Right

The tax is currently a flat 0.2% rate on gross receipts, with businesses under $200,000 in annual revenue paying nothing. Council is working to raise that exemption threshold, with the goal of protecting SeaTac's small, locally owned businesses.


How the Tax Works

B&O is a tax on business's gross receipts - the income a business earns from its activity, before expenses like payroll, rent, materials, or other operating costs are subtracted. It's different from sales tax, which the customer pays at checkout, and different from an income tax based on profit. Delivery platforms pay B&O on their own fees, separately from the restaurant or store making the sale.


Estimate Your Business's Impact

The City has built a free B&O tax estimation tool (see documents on the right menu). Any business can enter its gross income, tax classification, and deductions to see an estimated tax amount, with the match calculating automatically as you go.


What Businesses Can Do Now

While the Council continues refining the details, SeaTac business owners can start preparing today:

  • Review the City's B&O tax FAQ (see documents section on the right menu) as new details become available
  • Make sure your business contact and registration information is current
  • Take a look at your record-keeping for gross receipts and business activity in SeaTac
  • Watch for updates on rates, thresholds, exemptions, and filing deadlines
  • Join a City-hosted informational session (watch our blog and/or monthly newsletter for updates), or reach out with questions below


Coming Soon: B&O Tax Open House for Businesses

SeaTac’s B&O Tax Takes Effect January 1, 2027. Get ready with us! Join City leaders for an overview of the new Business & Occupation tax. This presentation will help you:

  • Understand the basics. Learn how the tax works, who may need to file, and the key dates ahead.
  • See the estimator in action. Watch a demonstration of the free online tool that can help you estimate what your business may owe.
  • Get the latest on the exemption threshold and other implementation details.

Stay tuned for updates on this page and on our social accounts.

The Business & Occupation (B&O) Tax is not new to SeaTac. It was adopted by City Council in December 2025, and this page explains what it is, why it exists, and how the City is working to get it right.


Why the B&O Tax Exists

The B&O tax is part of a broader strategy the City is using to close a $6 million structural budget gap for the 2027-2028 biennium, without raising property or utility taxes on residents. Council adopted the tax in December 2025 as one of four tools in that plan alongside expense management, budget decisions, and the proposed Public Safety Sales Tax, Proposition 1 on the November 2026 ballot.

Rather than lock in every detail at once, Council chose to adopt the tax and take the time to get it right while getting input from the businesses it affects most.


Getting the Numbers Right

The tax is currently a flat 0.2% rate on gross receipts, with businesses under $200,000 in annual revenue paying nothing. Council is working to raise that exemption threshold, with the goal of protecting SeaTac's small, locally owned businesses.


How the Tax Works

B&O is a tax on business's gross receipts - the income a business earns from its activity, before expenses like payroll, rent, materials, or other operating costs are subtracted. It's different from sales tax, which the customer pays at checkout, and different from an income tax based on profit. Delivery platforms pay B&O on their own fees, separately from the restaurant or store making the sale.


Estimate Your Business's Impact

The City has built a free B&O tax estimation tool (see documents on the right menu). Any business can enter its gross income, tax classification, and deductions to see an estimated tax amount, with the match calculating automatically as you go.


What Businesses Can Do Now

While the Council continues refining the details, SeaTac business owners can start preparing today:

  • Review the City's B&O tax FAQ (see documents section on the right menu) as new details become available
  • Make sure your business contact and registration information is current
  • Take a look at your record-keeping for gross receipts and business activity in SeaTac
  • Watch for updates on rates, thresholds, exemptions, and filing deadlines
  • Join a City-hosted informational session (watch our blog and/or monthly newsletter for updates), or reach out with questions below


Coming Soon: B&O Tax Open House for Businesses

SeaTac’s B&O Tax Takes Effect January 1, 2027. Get ready with us! Join City leaders for an overview of the new Business & Occupation tax. This presentation will help you:

  • Understand the basics. Learn how the tax works, who may need to file, and the key dates ahead.
  • See the estimator in action. Watch a demonstration of the free online tool that can help you estimate what your business may owe.
  • Get the latest on the exemption threshold and other implementation details.

Stay tuned for updates on this page and on our social accounts.

Questions?

The City Council is still working through the details, and business input is part of that process as the City refines the tax ahead of its January 2027 effective date.

We want to hear from you! Send us your comments and questions and we will get back to you as soon as possible.

Email
loader image
Forgot password?
Didn't receive confirmation?
Register Now
Seems like you are already registered, please provide the password. Forgot your password? Create a new one now.

  • Good morning. I see on the BO Tax FAQ.docs that "The Port(of Seattle) itself isn't taxed. Private businesses operating at the airport, such as restaurants, shops, parking, and rental car companies, do pay." As a general contractor performing construction work directly for the Port of Seattle at the Airport will this new B&O tax be applicable to our Prime Contract amount, the work, and revenue from this general contracting work at the Airport? Thank you.

    Rod Noble asked 25 days ago

    Hello! Thank you for your question. Yes, contractors working at the airport are subject to the tax.

Page last updated: 21 Oct 2026, 10:54 AM