Everett, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Base B&O rate
- 0.1% of gross receipts
- Surtax threshold
- ~$8B+ citywide receipts, one class
- Surtax rate
- 0.25% on excess
- Small-business exemption
- $20,000/year gross receipts
- Classifications
- 7 activity categories
Summary
Everett's business and occupation tax sorts every business into one of seven activity classes, extracting, manufacturing, wholesaling, retailing, retail services, printing/publishing, or a catch-all “service and other”, each taxed at its own rate on gross receipts.
The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including byproducts, as the case may be, as follows: 1. Upon every person engaging within the city in business as an extractor...multiplied by the rate of one-tenth of one percent... 2. ...as a manufacturer... 3. ...at wholesale... 4. ...at retail... 6. ...retail services... 7. Upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section...
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 4194-26, passed July 29, 2026).
Full Breakdown
Under Everett Municipal Code § 3.24.050, the city's B&O tax is not one flat charge: a business is taxed under whichever of seven classifications its activity falls into, extracting, manufacturing, wholesaling, retailing, printing/publishing/extracting-for-hire/processing-for-hire, retail services, or “every other” service/other activity, with the base rate set at one-tenth of one percent (0.1%) of gross proceeds, gross income, or value of product depending on the class. A business active in more than one classification is taxed under each applicable one. A stepped-up 0.25% rate applies only to the portion of a single business's citywide receipts in a classification that exceeds multi-billion-dollar annual thresholds (starting near $8 billion and rising through 2034), a bracket that reaches essentially no one in Everett except Boeing's widebody plant. Businesses with total citywide gross receipts of $20,000 or less per year ($5,000 per quarter) owe no B&O tax at all.
Violations & Fines
Misreporting a classification, falsifying a return, or evading the tax is a gross misdemeanor: up to a $1,000 fine, one year in jail, or both, under EMC § 3.19.230; continuing to operate after license revocation risks a $5,000 fine.
Frequently Asked Questions
How many B&O tax classifications does Everett use?
Does the higher 0.25% B&O rate hit most Everett businesses?
Sources & Official References
Other rules in Everett
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Business Tax Classification in Nearby Cities
How other cities in Snohomish County handle business tax classification.