Business Climate, Tools & Incentives
The City of Tacoma and the State of Washington, in cooperation with the private sector, have created a great business climate so that fewer incentives are needed. For example, businesses in Washington State do not pay corporate excise tax, nor do their employees pay personal income tax. This enables companies and their workforce to retain more of their earnings without the need for additional incentives. We invest the tax revenues we receive wisely in infrastructure, workforce development and other areas to assist business growth and expansion.
The City of Tacoma, Pierce County and Washington State recognize that it is important to minimize business costs while obtaining sufficient revenue to pay for essential and other services that enable business development.
Our Supportive Business Climate includes:
- No personal income tax in the City, County or State.
- No corporate excise tax in the City, County or State.
- No property tax on inventories.
- No square footage tax.
- No separate transit district tax.
- No impact fees.
- The City of Tacoma charges a Business & Occupation (B&O) tax, but it can be offset by tax credits. Businesses whose gross income is equal to or less than $250,000 annually are exempt from the B&O tax. Companies with gross incomes between $250,001 and $300,000 pay according to a sliding scale.
- Business license fees are modest ($90 annual fee for businesses with annual gross incomes of ≥$12,000).
Free Tools for Investors and Local Businesses
As part of its continued efforts to drive economic growth in Tacoma, the City of Tacoma has announced the launch of a new business intelligence tool, TacomaSpace, to search for available real estate through Invest Pierce County.
Business Incentives in Tacoma
The City works hard to leverage public assets to drive economic development in Tacoma. Staff is also dedicated to helping its business community and neighborhoods thrive by serving as expert business consultants on local and surrounding markets. If you’re a developer or investor considering Tacoma, here are some resources for you.