Seattle Mayor Eyes New Taxes on Businesses, Wealthy as Companies Flee

Socialist Mayor Katie Wilson signals plans to expand taxes despite growing corporate exodus from the city.

Apr. 1, 2026 at 11:09pm

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As Seattle faces rising office vacancies, tech layoffs, and an exodus of high-earning residents, Socialist Mayor Katie Wilson is signaling she may pursue even more taxes on large businesses and wealthy individuals to help close a projected $140 million city budget gap in 2027.

Why it matters

Seattle's increasingly aggressive tax structure, including the JumpStart payroll tax and a new state income tax on high earners, has already led major employers like Amazon to shift thousands of jobs out of the city to neighboring Bellevue and other King County locations. This raises concerns about Seattle's ability to retain businesses and high-income residents amid the mayor's plans for further tax hikes.

The details

Speaking at a community forum, Mayor Wilson said her administration is exploring 'progressive revenue options' like expanding the JumpStart payroll tax and creating a local capital gains tax. However, she acknowledged the contradiction of wanting companies to 'pay more' while not giving them 'an incentive to go over to Bellevue.' Downtown Seattle's office vacancy rate now exceeds 33%, and major tech layoffs at companies like Oracle, Meta, Microsoft, and Amazon have contributed to over 20,000 job losses in the region. Critics warn that Wilson's tax plans could accelerate the outflow of capital, talent, and investment from the city.

  • On April 1, 2026, Mayor Wilson signaled plans to pursue new taxes on businesses and the wealthy.
  • In 2021, Seattle's JumpStart payroll tax took effect, leading Amazon to shift thousands of jobs to Bellevue.
  • In 2026, businesses with employees making more than $1 million will face an additional 5% tax on salaries above that level.

The players

Katie Wilson

The Socialist mayor of Seattle who is signaling plans to pursue new taxes on businesses and high-income residents to help close a projected city budget gap.

Jon Scholes

The president and CEO of the Downtown Seattle Association, who said Amazon has already shifted thousands of employees from Seattle to Bellevue in response to the city's increasingly aggressive tax structure.

Bob Ferguson

The governor of Washington who recently signed legislation reducing the state's estate tax from 35% to 20% after lawmakers acknowledged concerns that wealthy residents were leaving the state.

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What they’re saying

“My team is very hard at work looking for progressive revenue options, taxing the rich, taxing big business in a way that we think will be politically viable and practical.”

— Katie Wilson, Mayor of Seattle

“So I think companies can afford to pay more, but it's not good to give them an incentive to go over to Bellevue.”

— Katie Wilson, Mayor of Seattle

“Amazon has already shifted thousands of employees from Seattle to Bellevue and other King County cities in response to Seattle's increasingly aggressive tax structure.”

— Jon Scholes, President and CEO of the Downtown Seattle Association

What’s next

Mayor Wilson has instructed each city department to prepare scenarios for 5% and 10% budget cuts in response to the looming budget deficit, but her emphasis remains on raising new revenue from large employers and wealthy residents.

The takeaway

Seattle's efforts to raise taxes on businesses and high-income residents amid an exodus of companies and wealth from the city highlights the delicate balance between generating revenue and retaining a healthy business climate. As other states like Washington roll back taxes to stem the outflow of capital and talent, Seattle's socialist mayor appears poised to double down on a tax-the-rich strategy that could further accelerate the city's corporate and economic decline.