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

SMC 5.35.030 imposes the tax under authority of RCW 82.80.030 on "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," and the privilege applies "whether or not the right is exercised." The rate has climbed in three steps: 10% starting July 1, 2009, 12.5% starting January 1, 2011, and 14.5% starting July 1, 2022 (SMC 5.35.030.B). The tax is measured against the "parking fee" (SMC 5.35.040), 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.

Posted prices are conclusively presumed NOT to include the tax unless the operator advertises "tax included" in print at least half the size of the posted price, in the same medium as the price itself (SMC 5.35.040.C). SMC 5.35.050 exempts reserved stalls held 30+ days or longer by one person, residential parking at a person's own home, stadium and exhibition-center parking Seattle is barred from taxing under RCW 36.38.040, parking on City streets, and parking billed directly to federal, state, or local government. Under SMC 5.35.060, the commercial parking business must collect the tax at the time payment is made, state it separately on the payment instrument, and hold it in trust for the City; a business that fails to collect or remit is personally liable for the tax and "guilty of a violation of this chapter." Chapter 5.55's general administrative provisions (audits, penalties, interest) apply to this tax per SMC 5.35.010. Proceeds are dedicated to transportation purposes under RCW 82.80.070 and deposited into the City's Transportation Fund (SMC 5.35.070-.080), which can back transportation bonds.