Survey: More WA businesses considering leaving the state due to high taxes

February 6, 2026 - 13:50

A new survey of Washington state business leaders paints a concerning picture of the local economic climate, with a significant number considering relocation due to high taxes. The latest quarterly poll from the Association of Washington Business indicates that 44% of respondents are contemplating moving their personal residence out of state.

The data reveals a stark shift in business expansion plans. Companies are now more than twice as likely to grow their operations outside Washington's borders than within them. Specifically, 30% of business leaders indicated they are likely to expand outside the state, compared to just 14% who plan to expand internally.

The winter survey gathered responses from 429 business owners and operators across various industries. The findings suggest a growing sentiment that the state's tax environment and overall cost of doing business are becoming prohibitive. This trend, if realized, could have substantial long-term consequences for Washington's job market and economic diversity, potentially leading to a reduced tax base and lost investment. Business advocates point to the results as a clear signal for policymakers to reassess the fiscal pressures on the state's commercial sector.