Understanding Seattle Employer Excise Taxes

⚡ What Are Seattle's Employer Excise Taxes?

Seattle imposes two separate excise taxes on employers based on employee compensation: the Payroll Expense Tax (commonly called JumpStart) and the Social Housing Tax. Both are employer-paid — neither can be deducted or withheld from employee wages — and both apply only to businesses with employees whose compensation is attributable to work performed in Seattle.

These are two distinct taxes with their own thresholds, rates, and filing requirements. Because the dollar thresholds and rates are indexed to inflation and subject to change by the City of Seattle, this article explains each tax at a high level and points you to the City's official resources for the current-year figures.

🔐 Access Required

At this time, PUSH does not support calculating or remitting the Payroll Expense Tax (JumpStart) or the Social Housing Tax. This article is informational only, and we recommend confirming your specific obligations with your legal or tax advisor, or the City of Seattle's Finance and Administrative Services website.

📋 Topics Covered in This Article:

• Seattle Payroll Expense Tax (JumpStart)
• Seattle Social Housing Tax
• How Can Push Help?
• Frequently Asked Questions About Seattle's Employer Excise Taxes

📚 Related Articles:

• Seattle Labor Stands Resource

• Payroll Expense Tax Resource

• Social Housing Tax Resource

• Check out our dedicated Payroll section to find how-to guides, FAQs, and more.

Seattle Payroll Expense Tax (JumpStart)

The Payroll Expense Tax, often referred to as JumpStart, is a business excise tax on employers operating within Seattle city limits. It's imposed on the business itself, not the employee. It applies to larger employers with substantial Seattle payroll and at least one higher-earning employee.

Whether your business is subject to the tax, and at what rate, depends on two things: 

• Your total Seattle payroll expense in the prior year

• Whether any employee's annual Seattle compensation crosses a set threshold in the current year. 

Both thresholds adjust annually for inflation, so a business that isn't subject to the tax one year may become subject to it the next.

Compensation counted toward the tax generally includes wages, bonuses, commissions, and equity compensation, while certain retirement contributions and non-taxable benefits are typically excluded. Some limited exemptions exist, including for smaller businesses below the payroll threshold, certain grocery retailers, and government entities.

​💡 | Tip: Since the payroll and compensation thresholds change each year, we recommend confirming your current-year numbers with your tax advisor or the City of Seattle's Finance and Administrative Services website before determining whether your business owes this tax.

Seattle Social Housing Tax

The Social Housing Tax is a separate excise tax on excess employee compensation, in effect for businesses operating in Seattle since January 1, 2025. Unlike JumpStart, it isn't based on total payroll size; it applies per employee, to the portion of an individual's annual compensation above a set high-earner threshold.

The tax is employer-paid and can't be deducted from employee wages. It uses a broad definition of "employee" that can include partners, LLC members, and certain independent contractors, and a broad definition of compensation that generally includes wages, bonuses, equity at vesting, and severance. Some payment types, such as tips and employer retirement contributions, are typically excluded.

​📌 | Note: This tax was filed annually for its first year and moves to a quarterly filing schedule going forward. Filing deadlines and thresholds are set by the City of Seattle and are subject to change.

How Can Push Help?

At this time, PUSH does not calculate, automate, or remit either the Payroll Expense Tax or the Social Housing Tax on your behalf. Employers remain responsible for determining whether they meet the applicable thresholds and for submitting any required filings and payments directly to the City of Seattle.

We recommend utilizing the payroll reports available in your account. These reports are automatically available to customers who utilize our payroll feature (requires the Payroll Add-On), and you can use them to pull your employees' earnings and hours to help support your filings.

Frequently Asked Questions About Seattle's Employer Excise Taxes

Have questions about Seattle's Payroll Expense Tax or Social Housing Tax? This section provides quick answers to help you navigate the basics with confidence.

Q: Does Push calculate or file the Payroll Expense Tax or the Social Housing Tax for me? 
A: No. PUSH does not calculate, automate, or remit the Payroll Expense Tax or the Social Housing Tax. Filing and remittance are the business's responsibility. See How Can Push Help? section above for more details. 

Q: How do I know if my business meets the thresholds for either tax? 
A: The thresholds for both taxes adjust annually and depend on your total Seattle payroll and individual employee compensation. We recommend checking with your legal or tax advisor, or the City of Seattle's Finance and Administrative Services website, to confirm your current-year figures.

Q: Can these taxes be deducted from employee pay? 
A: No. Both the Payroll Expense Tax and the Social Housing Tax are employer-paid and cannot be withheld or deducted from employee wages or compensation.

Q: Are the Payroll Expense Tax and the Social Housing Tax the same thing? 
A: No. They're two separate taxes with different tax bases, rates, and filing schedules. The Payroll Expense Tax is based on total business payroll and individual high-earner thresholds, while the Social Housing Tax applies to the portion of an individual employee's compensation above a set amount.

Q: Where can I find the current thresholds, rates, and deadlines? 
A: We recommend visiting the City of Seattle's Finance and Administrative Services website or speaking with your legal or tax advisor for the latest figures, since these are subject to change.

Additional Information

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