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Seattle, WA Local Taxes & Fees: Parking Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Current rate
14.5% of parking fee (since July 1, 2022)
Prior rates
10% (2009), 12.5% (2011)
Statutory authority
RCW 82.80.030
Reserved-stall exemption
30+ days by same person
Revenue destination
City Transportation Fund
Non-remitting operator
personally liable, guilty of violation

Summary

Seattle taxes every commercial parking transaction at 14.5% of the parking fee, effective July 1, 2022, under SMC 5.35.030. The tax applies citywide to any covered or uncovered commercial parking lot that charges a fee, and lot operators must collect and remit it to the Director of Finance and Administrative Services.

A.Pursuant to RCW 82.80.030, there is imposed on every person a tax for the act or privilege of parking a motor vehicle in a commercial parking lot within the City that is operated by a commercial parking business. The privilege of parking includes the right to park, whether or not the right is exercised.B.The amount of the parking tax shall be equal to the parking fee multiplied by the parking tax rate. Effective July 1, 2009, the parking tax rate is imposed at ten percent (0.10). Effective January 1, 2011, the parking tax rate is imposed at 12.5 percent. Effective July 1, 2022, the parking tax rate is imposed at 14.5 percent.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 44 Update 1).

Full Breakdown

B). 040), if a lease bundles the fee with other charges or the price isn't an arm's-length figure, the Director sets the fee by rule based on fair market value. C). 040, parking on City streets, and parking billed directly to federal, state, or local government. 010. 080), which can back transportation bonds.

Violations & Fines

A commercial parking business that fails to collect or remit the tax is liable to the City for the full amount and is guilty of a violation of Chapter 5.35 (SMC 5.35.060), separate from Chapter 5.55's general administrative penalties, interest, and collection remedies for City excise taxes, which apply because SMC 5.35.010 pulls that chapter in wholesale.

Frequently Asked Questions

What is Seattle's commercial parking tax rate?
14.5% of the parking fee, effective July 1, 2022, under SMC 5.35.030.B. The rate was 12.5% from 2011-2022 and 10% from 2009-2011, so older invoices or signage may show outdated figures.
Who has to pay Seattle's parking tax?
Anyone parking a motor vehicle in a commercial parking lot charging a fee within the City. The commercial parking business collects it from the customer at the time of payment and remits it to the City under SMC 5.35.060.
Are any parking spaces exempt from the tax?
Yes. SMC 5.35.050 exempts stalls reserved 30+ days for one person, residential parking at a person's own home, stadium/exhibition-center parking barred from City taxation by RCW 36.38.040, on-street City parking, and parking billed directly to government agencies.
Can a lot just post 'tax included' instead of adding it at checkout?
Only if it meets SMC 5.35.040.C's conditions: the words "tax included" appear immediately after the posted price in type at least half as large, in the same medium as the price. Otherwise the posted price is presumed tax-exclusive.

Sources & Official References

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