TNC Tax

Transportation Network Company Tax

Beginning July 1, 2020, the City of Seattle will impose a tax on Transportation Network Company (TNC) trips originating from within Seattle. The tax is levied on TNC companies engaging in the business of arranging transportation for compensation by using online platforms to connect passengers with drivers. As part of the Mayor's Fare Share Plan, revenue from this tax will support affordable housing near transit, the Center City Connector streetcar and the establishment of an independent driver resolution center.

Tax rate

The tax rate is $0.57 per trip originating in Seattle, meaning a TNC dispatched trip where a passenger enters the driver's vehicle within the city limits of Seattle. Please note that accommodating this tax is a six-cent fee reduction in the TNC licensing fee, which will be $0.08 per trip beginning July 1, 2020. 

Guidelines

  • All TNCs must file a tax return and report the number of trips originating in Seattle whether or not tax is actually owed.
  • No tax is due if a TNC has less than 1,000,000 trips originating in Seattle during the prior calendar quarter.
  • The TNC tax shall be due and payable quarterly.
  • Additional fees and/or requirements are separate from the TNC tax.
  • Individual drivers and TNC companies must have a Business License Tax Certificate if they do business in Seattle.

Deductions

Any trip originating in Seattle and terminating outside the state of Washington may be deducted when calculating the overall TNC tax due. 

Get more information

Read related regulations at https://www.seattle.gov/business-regulations/taxis-for-hires-and-tncs/transportation-network-companies/tnc-companies .