Businesses and residents in Bellevue, Washington pay several city-level taxes on top of state taxes: a Business and Occupation (B&O) tax of 0.1596% on gross receipts, a combined sales and use tax of 10.3%, property taxes billed through King County, utility taxes running from 4.5% to 10.4%, a 3% admissions tax, and a gambling tax of 2% to 5%. The city of Bellevue taxes covered below include current rates, who owes them, filing deadlines, and what happens when a return is late.
Business and Occupation Tax
Any business operating within Bellevue city limits owes B&O tax on gross receipts, not net profit. Deductions for expenses, salaries, or cost of goods sold do not reduce the taxable amount. The rate is 0.1596% across all classifications, whether you are a retailer, wholesaler, manufacturer, or service provider.1City of Bellevue. Gross Receipts B&O Tax
Bellevue also charges a separate square footage tax of $0.3297475 per square foot per quarter on certain business premises.2City of Bellevue. Business and Occupation Tax Guide It applies on top of the gross receipts tax, so a business with office space in the city can owe both.
Businesses reporting $215,000 or less in annual taxable receipts are exempt from the gross receipts portion for 2026.3City of Bellevue. Business and Occupation Taxes Offices with 250 square feet or less of taxable space are exempt from the square footage tax.2City of Bellevue. Business and Occupation Tax Guide Falling below either threshold does not excuse you from filing a return.
Sales and Use Tax
The combined sales tax rate in Bellevue is 10.3%. That figure includes 6.5% for the State of Washington and 3.8% retained for local and regional services.4Washington Department of Revenue. Local Sales and Use Tax Rate Table It applies to most retail purchases and many services.
Use tax fills the gap when sales tax was not collected at purchase. If you buy something outside Bellevue or outside Washington and use it in the city, and no Washington sales tax was charged, you owe use tax at the same 10.3% rate. Online orders from out-of-state retailers that did not collect the tax are the common trigger, along with equipment bought in a lower-rate state.
Businesses buying goods for resale can skip sales tax on those purchases by presenting a valid reseller permit from the Washington Department of Revenue. Permits are generally good for four years, though newer businesses and contractors get two-year permits.5Washington Department of Revenue. Reseller Permits Using the permit to buy items for personal use or consumable business supplies triggers the tax you skipped plus a 50% penalty.
Property Tax
Property tax in Bellevue is a shared operation. The Bellevue City Council sets the local levy rate, the King County Assessor determines property values, and the King County Treasury sends the bills and collects payment. The city’s share flows primarily into the General Fund, which supports police, fire, parks, and daily operations.
Voters sometimes approve lid lifts that let the levy rate exceed normal statutory limits for a specific purpose, such as park improvements or transportation projects. Those measures are time-limited and the money is restricted to the stated use. The bill you actually receive stacks levies from the state, county, city, school district, and any special districts, so the city portion is only one line in the total.
Utility Taxes
Utility providers doing business in Bellevue pay tax on their gross operating revenues under Bellevue City Code Chapter 4.10. Covered services include electricity, natural gas, telephone, cellular, water, sewer, storm drainage, cable, and garbage collection. Rates run from 4.5% to 10.4% depending on the service.6City of Bellevue. Special Local Taxes Washington state law caps the rate for electricity, natural gas, and telephone at 6% unless voters approve a higher rate, so Bellevue’s rates on those services stay at or below that ceiling.
Most utility companies pass the tax through to customers as a separate line on the monthly bill, usually labeled as a city utility tax. The tax is technically imposed on the utility company, but the economic effect lands on the customer.
Admissions and Gambling Taxes
Bellevue collects a 3% admissions tax on the ticket price for events and venues that charge admission, including concerts, sporting events, and theaters.6City of Bellevue. Special Local Taxes The business collects it from the customer and remits it to the city, much like sales tax.
Businesses licensed by the Washington State Gambling Commission to operate gambling activities in Bellevue owe a gambling tax on bingo, raffles, amusement games, punchboards, and pull-tabs. The rate runs from 2% to 5% depending on the activity.6City of Bellevue. Special Local Taxes
Filing Deadlines and How to Pay
Quarterly B&O returns follow a fixed schedule:2City of Bellevue. Business and Occupation Tax Guide
- Quarter ending March 31: payment due April 30
- Quarter ending June 30: payment due July 31
- Quarter ending September 30: payment due October 31
- Quarter ending December 31: payment due January 31
Annual filers submit their return and payment by January 31 following the tax year. When a deadline falls on a weekend or holiday, it shifts to the next business day. Your filing frequency (monthly, quarterly, or annual) is assigned by the city after you register, and it tracks the volume of your business activity. Businesses at or below the $215,000 exemption threshold with 250 or fewer taxable square feet typically file annually.
The primary filing method is FileLocal, the online portal that handles returns for Bellevue and other participating Washington cities. You can pay through ACH bank transfer or credit card, and electronic submissions generate a confirmation number that serves as proof of filing.7City of Bellevue. Business Licenses
Penalties and Interest for Late Filing
The late-filing penalty escalates on a set schedule. One day late triggers a 9% penalty of the tax owed, with a $5 minimum. After one month, it rises to 19%. After two months, 29%.2City of Bellevue. Business and Occupation Tax Guide The city adds interest at 6% annually for 2026.
For a business owing $5,000 in quarterly B&O tax, filing three months late means a $1,450 penalty plus interest. Filing on time with estimated figures and amending later is usually cheaper than filing late with exact ones.
Federal Deduction for Bellevue Taxes
Bellevue’s B&O tax is deductible as a business expense on your federal income tax return. Because Washington has no state income tax, the B&O tax is one of the main state and local taxes businesses here can write off. Sole proprietors report it on Schedule C; partnerships, S corporations, and C corporations deduct it on the applicable business return.8Internal Revenue Service. Topic No. 503, Deductible Taxes
For individuals who itemize, the federal state and local tax deduction is capped at $40,000 for single and joint filers in 2026, phasing down to $10,000 for those with modified adjusted gross income above $600,000.8Internal Revenue Service. Topic No. 503, Deductible Taxes Married couples filing separately face a $20,000 cap. The limit applies to the combined total of property taxes, sales taxes, and any other deductible state and local taxes claimed on Schedule A. Businesses deducting these taxes as ordinary operating expenses on a business return are not subject to the cap.