Today, Mayor Ed Murray released the following statement after City Council unanimously voted to create a city income tax on high-income earners, shifting Seattle to a more progressive and sustainable tax structure. The legislation will apply a 2.25 percent tax rate on annual income over $250,000 for individuals, or $500,000 for married couples filing jointly. The tax will not affect any income earned below these thresholds.
“Seattle is challenging this state’s antiquated and unsustainable tax structure by passing a progressive income tax,” said Mayor Murray. “Our goal is to replace our regressive tax system with a new formula for fairness, while ensuring Seattle stands up to President Trump’s austere budget that cuts transportation, affordable housing, healthcare, and social services. This is a fight for economic stability, equity, and justice.”
An estimated $140 million in new annual revenue generated by the income tax would allow the City to lower the burden associated with property taxes and other regressive taxes, replace federal funding potentially lost through President Trump’s budget cuts, and enhance public services such as housing, education, transit, and/or create green jobs while meeting the City’s carbon reduction goals.