Downtown Bellevue has quietly become one of the most attractive business destinations in the Pacific Northwest. With a lower tax burden, rising office values, and steady job growth, the city has positioned itself as a business-friendly alternative to Seattle — and the numbers tell a clear story. A new report from the Downtown Seattle Association now puts that contrast into focus.
The report, which examines data from 2019 through 2026, compares the business and tax environments of Seattle and Bellevue and finds that Seattle’s tax burden on businesses has grown significantly while Bellevue’s has remained stable and, in some cases, declined.
That growth is reflected in recent leasing activity. According to the Broderick Group’s Q1 2026 Eastside Office Market Report, “the influx of new-to-market entrants, combined with expansion activity from emerging tech companies, is reinforcing Bellevue’s long-term resilience.” Companies including Snap, Zoom, OpenAI, and xAI have all expanded or signed new leases in Downtown Bellevue in recent months.
Office Market
Downtown Bellevue’s office vacancy rate stood at 2.5% in 2019 and rose to 24% by 2025. In Seattle, vacancy went from 6.7% in 2019 to 32% in 2025. Between 2020 and 2025, downtown Bellevue office properties increased 7% in assessed value while downtown Seattle office properties fell 48%. Jobs in downtown Bellevue grew 12.6% between 2023 and 2025; Seattle lost 1.3% over the same period.
Tax Environment
Seattle imposes a Business & Occupation gross receipts tax of 0.342% to 0.658%, depending on industry, applying to businesses with gross receipts above $2 million. Bellevue’s B&O gross receipts tax is 0.1596%, applying to businesses with gross receipts above $215,000. Seattle’s rate is two to four times higher than Bellevue’s, depending on the industry.
Seattle also imposes a payroll expense tax, known as the JumpStart Tax, on businesses with Seattle payroll above $9,074,409 and at least one employee earning $194,452 or more. In 2026, that tax would cost qualifying Seattle businesses between $1,450 and $9,390 per job. Bellevue has no equivalent payroll tax.
Seattle additionally imposes a 5% Social Housing Tax on compensation exceeding $1 million paid to an employee, which took effect January 1, 2025. Bellevue has no comparable tax.
In 2026, Seattle is projected to collect $410 million in JumpStart revenue, $80 million in increased B&O tax revenue, and $115 million in Social Housing Tax revenue — taxes that Bellevue does not have or carries at lower rates.
Property Taxes
In 2019, Seattle and Bellevue carried nearly equal city property tax rates. By 2026, Seattle’s city portion had risen from $3.79 to $5.60 per $1,000 of property value — an increase of $1.81. Over the same period, Bellevue’s city portion declined from $3.72 to $3.12 per $1,000, a decrease of $0.60.
Minimum Wage and Business Licenses
Seattle’s 2026 minimum wage is $21.30 per hour, compared to $17.13 in Bellevue — a difference of $4.17 per hour. Seattle’s annual business license fee ranges from $73 to $3,210, depending on taxable revenue, and must be renewed annually. Bellevue’s business registration fee is $119 and does not require annual renewal.
Property Tax Burden Shift
According to the King County Assessor’s Office, residential property owners historically made up approximately 65% of King County’s tax base. By 2025, that share had risen to 83%, while non-residential properties declined from 35% to 17%. King County’s office sector lost more than $16 billion in taxable value between 2020 and 2025, with downtown Seattle office properties accounting for nearly two-thirds of that decline.
The full report was produced by the Downtown Seattle Association.
