Best Cities for Small Business in Washington
Washington ranks #23 of 50 for small business, with a small business score of 58.8. Kirkland is its best city for small business at 74.2.
- Washington, all states
- #23 of 50
- Population
- 92,621
Washington for Small Business: The Full Picture
Washington ranks #23 out of 50 for small business owners and entrepreneurs, with a mixed set of conditions for entrepreneurs. The state's fiscal health score of 64/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Washington's overall tax burden is 8.61% of income, and crucially, there is no state income tax — a major advantage for business owners whose personal and business finances often overlap. The 9.51% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 52/100) with 4.7% unemployment shows healthy labor availability.
Population growth of 0.92% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 57/100) produces a reasonably well-prepared workforce. A typical home value of $591,879 is expensive enough that employee compensation expectations may be higher.
All 26 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Kirkland | A+ | 74.2 | 70.3 | 94 | 83 | 70 | 92,621 |
| 2Redmond | A+ | 73.0 | 71.1 | 95 | 85 | 54 | 77,353 |
| 3Bellevue | A+ | 71.2 | 70.0 | 92 | 85 | 49 | 151,847 |
| 4Sammamish | A | 68.0 | 64.2 | 98 | 84 | 44 | 66,463 |
| 5Seattle | B+ | 64.4 | 61.1 | 76 | 73 | 56 | 754,195 |
| 6Shoreline | A | 64.1 | 64.9 | 73 | 67 | 57 | 61,431 |
| 7South Hill | C+ | 62.5 | 53.3 | 76 | 68 | — | 68,025 |
| 8Marysville | B+ | 60.3 | 58.8 | 71 | 61 | 61 | 73,002 |
| 9Richland | B+ | 59.0 | 60.2 | 65 | 60 | 50 | 62,753 |
| 10Renton | B+ | 57.5 | 59.1 | 69 | 60 | 43 | 105,317 |
| 11Lacey | B+ | 55.9 | 59.0 | 58 | 56 | 44 | 57,737 |
| 12Auburn | B | 55.4 | 56.7 | 66 | 57 | 41 | 85,676 |
| 13Olympia | B | 55.3 | 58.1 | 50 | 54 | 51 | 55,951 |
| 14Kent | B | 53.9 | 56.8 | 61 | 54 | 43 | 135,603 |
| 15Everett | B | 53.6 | 56.4 | 53 | 51 | 49 | 111,845 |
| 16Pasco | B | 53.6 | 56.2 | 54 | 49 | 49 | 79,575 |
| 17Vancouver | C+ | 53.5 | 54.3 | 57 | 52 | 45 | 195,300 |
| 18Burien | C+ | 52.8 | 55.6 | 56 | 54 | 44 | 51,513 |
| 19Spokane Valley | B | 51.7 | 56.4 | 49 | 50 | 42 | 106,365 |
| 20Kennewick | C+ | 51.5 | 54.3 | 46 | 47 | 53 | 85,295 |
| 21Spokane | C+ | 50.6 | 53.8 | 45 | 49 | 42 | 230,293 |
| 22Tacoma | D | 50.6 | 47.7 | 55 | 52 | 46 | 222,758 |
| 23Federal Way | C+ | 50.5 | 53.8 | 54 | 50 | 41 | 99,493 |
| 24Bellingham | C+ | 47.4 | 53.8 | 35 | 49 | 49 | 93,438 |
| 25Lakewood | D | 47.3 | 47.9 | 48 | 45 | 40 | 62,937 |
| 26Yakima | D | 43.2 | 47.7 | 37 | 37 | 35 | 96,961 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Washington for Other Lifestyles
Frequently Asked Questions
Is Washington a good state for small business?
Washington ranks #23 out of 50 for small business with a persona-weighted score of 58.8/100. Its strongest relevant category is Fiscal Health (64/100) and its weakest is Livability (34/100).
What is the best city for small business in Washington?
Kirkland ranks #1 in Washington for small business with a score of 74.2/100, followed by Redmond and Bellevue.
What factors are most important for small business in Washington?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.