Edmonds Taxes and Incentives


Taxes are compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This does not include specific charges made to people or property for current or permanent benefits such as special assessments, or fees for services charged only to those who pay for and use those services.

The City of Edmonds Does Not Collect A City Business and Occupation Tax or Employee/Head Tax - All individuals and firms doing business in Edmonds, whether located inside or outside the City limits, are not subject to a City business and occupation tax, or employee/head tax.

Information about the taxes of most interest to businesses are listed below. A helpful overview is published by the Washington State Department of Revenue:

  • Business Tax Overview (PDF)(PDF) - published by the Washington State Department of Revenue. The state of Washington does not have a corporate, unitary, or personal income tax. However, Washington businesses are subject to three major taxes either administered or overseen by the Department of Revenue: Business and occupation tax, Retail sales/use tax, and Property tax

Property Taxes

Washington's property tax system is a significant source of revenue for state and local governments, including the City of Edmonds. In Snohomish County, property tax assessment is performed by the County Assessor's Office and collection performed by the County Treasurer's Office. Property tax revenues are then distributed to the City and other governments as appropriate.

Although property taxes represent a significant source of funding for City services (approximately 36%), the portion of each property owner's tax bill that is distributed to the City is approximately 14.6%. In 2020, the total property average tax rate in Edmonds is $9.14 per $1,000 of assessed valuation, with $1.33 (per $1,000 assessed valuation) of that going to the City of Edmonds.

The links below provide information to help property owners understand how property taxes are calculated and collected:

Sales Tax

The retail sales tax is Washington's principal tax source. Local retail sales and use taxes provide important funding sources for local governments, including the City of Edmonds. Sales and use taxes are collected by the state Department of Revenue. The state portion is deposited in the state General Fund. City and county taxes are returned to the local governments. Specifically designated taxes must be used to operate the program(s) they fund. The Sales and Use tax rate collected within the City of Edmonds = .105 (City of Edmonds = .040 and the State of Washington = .065)

Utility Tax

This tax is imposed on utilities. Typical business activities affected by this tax are telephone, cellular, gas, electric, cable and garbage. The rate is 6%. City-operated utilities (water, wastewater / sewer, and stormwater) also are subject to a utilities tax. The Utility Taxes for the Water System is 10.0%, Sewer System is 10.0% and Stormwater System is 10.0%.

Business Incentives in Edmonds

Washington State has a stable, uncomplicated tax system that has remained essentially unchanged since 1935. The State's tax system features:

  • No corporate tax
  • No unitary tax
  • No inventory tax
  • No personal tax
  • No tax on interest, dividends, or capital gains

What's more, Edmonds levies no Business & Occupation (B&O tax), nor Admissions Tax.

Multi-Family Tax Exemption Program

In order to encourage development of mixed-use and single-use buildings that provide housing (including affordable units) in two areas of Edmonds (Westgate and the Highway 99 Subarea), Edmonds provides the Multi-Family Tax Exemption (MFTE) program, as do most other cities in the region. The MFTE program provides an up to 12-year partial exemption from property taxes to qualifying buildings. To qualify the building must make at least 20% of its units affordable to households earning between 80% and 115% of the Area Median Income for Snohomish County. While property tax is levied on the increased value of the land, and on any nonresidential component of a mixed-use building, the residential portion of the building may be exempt for up to 12 years. Once that period expires, the full tax benefits will accrue. Click here for further details, including application materials, and a Frequently Asked Questions brochure.


Todd Tatum, Director
[email protected]
or 425-771-0251

Megan Luttrell, Program Coordinator
[email protected]
or 425-775-7724