Survey: Nearly one in four Washington businesses now considering leaving state
May 6-A new survey shows the number of employers looking to move their business out of Washington rose to 24%, up from 17% in the prior quarter and nearly triple the number reported in the Association of Washington Business's (AWB) winter 2025 survey 16 months earlier.
Another 55% said they are considering moving their personal residence to another state, up from 44% the previous quarter. In Spokane County, a short drive from the Idaho border, 67% of respondents said they were considering moving their personal residence to another state.
The largest share (35%) report they are in the beginning stages of exploring a business move while 28% are actively searching for locations and 18% are developing a relocation plan. Six percent have already relocated part of their business, and 3% are in the process of relocating.
For those looking to move their personal residence, 59% report looking for real estate in another state, 44% are consulting with a CPA or tax professional, and 18% already own a home or condominium in another state.
Interest in relocation is just one of the ways the survey revealed employers' lack of confidence in Washington's economy. Sentiment has worsened across nearly every indicator over the last 16 months since lawmakers passed a record $9.4 billion in new taxes in 2025 and followed up this year by passing an income tax that's billed as targeting millionaires but will also hit small- and medium-sized businesses that are structured as pass-through entities, a news release from the AWB stated.
Among the findings:
-72% of respondents rate Washington's overall tax burden as a top business challenge, up from 64% last quarter and up 18 points since winter 2025
-7% rate Washington's economy as strong or very strong, down from 10% last quarter and down 16 points since winter 2025
-22% say their business is growing, up slightly from last quarter but down 5 points since winter 2025
-9% plan to expand in Washington in the next year, down from 20% in winter 2025, while 38% are planning to expand in another state, up from 21% in winter 2025
-46% expect a recession in the next year, up from 34% last quarter and up 29 points since winter 2025
"It's tempting for lawmakers to dismiss this kind of report and to suggest that businesses won't really leave, but that would be a mistake," AWB President Kris Johnson said in a news release. "We are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion."
The cost of health care once again ranked second on the list of top business concerns (65%), followed by government regulations (58%). The cost of fuel, a new choice in this survey, came in No. 4 with 53% flagging it. Concern about inflation ticked back up to 51%, after falling to 40% last quarter, and ranked No. 5. Concern about tariffs continued to fall, dropping to 28% compared to 30% last quarter, and yet more than half of respondents (56%) continue to report negative impacts from tariffs.
AWB conducts the Washington Employers Survey quarterly. The spring 2026 survey is based on 407 responses collected by email from business owners and operators across Washington between April 8-22.
The Spring 2026 Washington Employers Survey report can be found at https://tinyurl.com/nzfuasbw.
Copyright 2026 Tribune Content Agency. All Rights Reserved.