Seattle's JumpStart Payroll Tax Coincides with 30,000 Downtown Job Losses as Bellevue Gains Ground

A June 2026 report from the Downtown Seattle Association (DSA) documents a sharp divergence between Seattle and neighboring Bellevue since the city's JumpStart payroll tax took effect in 2020-2021. Downtown Seattle has shed approximately 30,000 jobs, with office vacancy rates climbing from 6.7% in 2019 to 32% in 2025 (reaching 34-36% in early 2026 market data). Taxable office property values fell 48%, while property tax burdens shifted upward—Seattle's rate rising nearly 48% to $5.60 per $1,000 of assessed value by 2026. Bellevue, without an equivalent payroll tax, saw job growth, office values rise 7%, and its property tax rate drop about 19% to $3.12 per $1,000. The DSA analysis compares tax environments directly, estimating the JumpStart tax costs affected Seattle businesses $1,450–$9,390 per employee and projects $410 million in revenue for 2026. Bellevue has no comparable levy. Independent office market reports corroborate elevated Seattle CBD vacancies (Kidder Matthews: 34.7% in Q1 2026; Cushman & Wakefield: 36.5%), lower but still elevated rates in Bellevue (~25%). Amazon, once Seattle's dominant employer with headcount peaking near 60,000 before declining, has grown its Bellevue footprint to over 15,000 employees by 2026, becoming the Eastside city's largest employer while expanding investments there. Local coverage from GeekWire, KOMO News, and Seattle Red highlights the tax differential alongside broader post-pandemic factors like hybrid work, noting Seattle's additional burdens (higher B&O taxes, social housing levy, minimum wage). Critics of the tax argue it accelerated business flight; supporters point to pandemic origins and revenue for housing/services. The pattern aligns with measurable employer shifts across the region rather than uniform remote-work effects.