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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchSeattle Mayor Katie Wilson’s September 22, 2026, proposed 2027–2028 budget does not raise the JumpStart Payroll Expense Tax. Instead, the proposal says it would address the city’s budget gap mainly through spending discipline, systemic reform and operational efficiencies. The tax remains a significant source of city revenue, but the mayor’s current proposal is not to increase it.
What the mayor’s budget proposal says about JumpStart
Wilson said the proposed budget would not raise the Payroll Expense Tax, commonly known as JumpStart, during economic uncertainty for Seattle businesses. The mayor’s September 22 announcement says the proposal balances primarily through spending discipline, systemic reform and operational efficiencies. It also maintains required contributions to the Revenue Stabilization Account, Emergency Fund and JumpStart reserve.
The proposed 2027 budget totals $9.1 billion across all funds. Its proposed General Fund is $2 billion, or 22% of the total, and more than half of General Fund spending goes to public safety, according to the mayor’s budget announcement. Wilson said she inherited a General Fund deficit estimated at $175 million. Her proposal includes nearly $50 million in annual General Fund spending reductions and eliminates 128 positions, 15 of which were filled when the proposal was announced.
JumpStart revenue would continue to support the General Fund and essential services. The proposal dedicates more than 30% of annual JumpStart revenue to affordable housing; Wilson said she wants that share to grow in future years. These are proposed-budget figures and commitments, not final adopted results. The City Council was expected to review and amend the proposal over the following two months, with final action typically in late November and adoption required by early December. The available official statements do not establish any subsequent Council action.
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Who pays Seattle’s Payroll Expense Tax?
JumpStart is a business tax, not a tax directly withheld from an employee’s paycheck. It applies to businesses that meet both a Seattle payroll threshold and a high-compensation employee threshold. The City’s 2026 guidance lists these thresholds:
- Total Seattle payroll in 2025 of at least $9,074,490.
- At least one employee with annual compensation of $194,452 or more in 2026.
Rates vary according to individual employee compensation and the business’s total Seattle payroll, according to the City’s 2026 Adopted Budget Book. The figures above are specific to the 2026 tax year; thresholds and rules can change, so a business assessing another year should consult the City’s guidance for that year. A large employer is not automatically liable without checking the applicable thresholds and rules.
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- User-Friendly Layout - The budget planner features a user-friendly layout designed for easy navigation and organization. Each month, you'll find dedicated budget pages where you can set financial goals, track your income, and plan your expenses. Additional sections include debt trackers, savings goals, bill payment trackers, and more, making it simple to stay on top of your finances.
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How much revenue does JumpStart bring in?
The City’s 2026 Adopted Budget Book reports the following historical tax obligations and revenue estimates. Obligations are not necessarily the same as cash collected in that calendar year; the 2025 figure is a revised forecast, and the 2026 figure is a budget estimate.
| Year | City-reported amount | What the figure represents |
|---|---|---|
| 2021 | About $297 million | Total JumpStart tax obligations reported in the City’s 2026 adopted budget. |
| 2022 | $266 million | Total JumpStart tax obligations reported in the City’s 2026 adopted budget. |
| 2023 | $315 million | Total JumpStart tax obligations reported in the City’s 2026 adopted budget. |
| 2024 | $359 million | Total JumpStart tax obligations reported in the City’s 2026 adopted budget. |
| 2025 | $385.4 million | Revised revenue forecast in the City’s 2026 adopted budget, not a final receipt figure. |
| 2026 | $392.7 million | Anticipated revenue in the City’s 2026 adopted budget, an estimate. |
The City’s adopted budget attributed its revised 2025 forecast to lower-than-expected 2024 revenue and economic uncertainty weighing on stock prices. Stock grants are included in employee compensation, so changes in stock prices can affect the tax base. That is the City’s stated explanation, not proof that one factor alone accounts for the forecast change.
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How the mayor’s position differs from a councilmember’s proposal
Seattle Councilmember Bob Kettle separately called for reviewing the Payroll Expense Tax in a July 21, 2026, statement. He advocated broadening the tax base while lowering the rate, with no net new revenue, and pausing further piecemeal tax increases. Kettle argued that tax design could affect businesses and the city’s tax base; those are his policy arguments, not established effects. The City’s published materials do not quantify the revenue or economic impact of his suggested redesign.
| Position | What it proposes | Revenue and effect established by the cited City statements |
|---|---|---|
| Mayor Katie Wilson’s September 2026 proposed budget | Do not raise JumpStart in the proposal; rely primarily on spending discipline, systemic reform and operational efficiencies. Wilson also supports pursuing other progressive revenue options for the future, including a local capital gains tax. | The proposal says JumpStart continues to support the General Fund and essential services, with more than 30% of annual revenue dedicated to affordable housing. The announcement says a local capital gains tax cannot close the immediate gap because of the state timeline. |
| Councilmember Bob Kettle’s July 2026 statement | Review the tax, broaden its base and lower its rate without net new revenue; pause further piecemeal tax increases. | The statement does not quantify the revenue from the redesign or establish its effects on businesses or the city’s tax base. |
The two positions should not be conflated: Kettle’s proposal is separate from Wilson’s budget, and neither the available statements nor the budget materials establish that Seattle has adopted his redesign.
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What to watch as the budget process continues
The mayor’s proposal is a budget plan, not the final Council decision. Council review and amendments could change spending or tax policy before adoption. For now, the dated distinction matters: Wilson’s September 2026 proposal does not increase JumpStart, while the tax continues to generate substantial but variable revenue under the City’s existing rules.
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