Frequently Asked Questions

Last updated: October 2026

These are the questions people ask us most about business licenses and fees in Seattle, answered the short way first. This site is not a government agency; we estimate from published schedules and point you to the official office for the final word. For the calculator itself, start on the home page.

How much is a business license in Seattle?
The 2026 license fee is $73 to $3,210 depending on your revenue tier, plus $10 per branch location. The B&O tax is separate: $0 up to $2M in revenue, then 0.342% or 0.658% on the excess.

Is the $2 million really tax-free?
Yes. Proposition 2 created a true $2 million standard deduction on the B&O tax for every business, effective January 1, 2026.

Do I need a license if I owe no B&O tax?
Yes. Businesses under $2M owe no B&O tax but still need the business license and may still need to file.

What did Prop 2 replace?
The old $100,000 threshold with a tax cliff, at rates of 0.222% and 0.427% on all receipts once you crossed it.

Will the rates change again?
The elevated rates run through at least 2029 and are scheduled to drop in 2033 (to 0.273% and 0.526%). We update this page as the city publishes changes.

Is this an official government website?

No. This is an independent resource operated by Perfect Option MBC, LLC. We are not a government agency and we are not affiliated with any city or state. Every estimate points back to the official published schedule so you can confirm the number at the source.

Is the calculator free?

Yes. The calculator and this guide are free to use, with no account and no sign-up. The numbers you enter are calculated in your browser and are not stored or sent to us.

How current are the fees?

We work from the fee schedules and tax rules the city publishes, and we update our math when the city updates its schedule. Fees do change, sometimes mid-year, so treat every result as a well-sourced estimate and confirm the final figure with the city before you budget around it.