Yakima, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Fee basis
- employee headcount, not flat rate
- Utility tax rate
- 6% of gross revenue
- Small-business threshold
- $12,000 annual gross income
- Governing chapter
- YMC Chapter 5.52
Summary
Yakima taxes businesses on an annual license fee scaled to employee headcount, with separate flat-rate taxes for utility-type businesses.
Commencing January 1, 1988, there is levied upon and shall be collected from every person engaging in business in the city a business license and annual license fee or tax amount for the privilege of engaging in business activities. Such license fee is measured by the number of employees of each business employed during the period immediately preceding the period for which the license fee is payable. These annual fees shall be set forth in the city of Yakima master fee schedule adopted by city council via resolution. The fee is per calendar year or portion thereof. Employees working more than one thousand six hundred hours, including legal holidays and vacation time, during the twelve-month period immediately preceding the period for which the license fee is payable are considered full-time employees; employees working one thousand six hundred hours or less, including legal holidays and vacation time, are considered part-time employees.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4980636; v1 updated 2026-08-03; through 08-03-2026).
Full Breakdown
The City of Yakima's general business and occupation license fee under YMC Chapter 5.52 is not a flat rate: it is computed from the number of full-time and part-time employees, with part-time hours divided by 1,600 to convert to full-time equivalents. This is distinct from the separate utility-business tax scheme in Chapter 5.50, which taxes electric, telephone, gas and water businesses at a straight percentage of gross revenue (six percent) instead of by headcount. Financial institutions fall under their own classification in YMC § 5.52.025, referencing the same employee-count fee table. Businesses under a $12,000 annual gross-income threshold register but pay no fee.
Violations & Fines
Operating without the required annual business license, or misreporting employee counts used to compute the fee, is enforced through license revocation and penalty provisions of YMC Chapter 5.52.
Frequently Asked Questions
How does Yakima calculate the business license fee?
Are utility businesses taxed the same way?
Sources & Official References
Other rules in Yakima
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