Starbucks Considers Nashville Over Seattle Amid Tax Concerns
A business reporter from Seattle has raised questions about Starbucks’ decision to potentially expand in Nashville rather than staying rooted in Washington. One of the primary concerns seems to revolve around tax regulations.
In an article for the Seattle Times titled, “What does Nashville have that Seattle doesn’t?” he discusses how Tennessee boasts one of the best tax environments for businesses, ranking eighth according to a 2025 study from the nonpartisan Tax Foundation. In contrast, Washington occupies a less favorable 45th place.
Starbucks seems to be pulling back from its Seattle footprint, announcing plans to close five locations in March, a move that follows previous closures in 2025, including a popular Reserve Roastery on Capitol Hill.
In March, the Washington State Democratic Party also passed a new tax initiative, dubbed the “Millionaire’s Tax.” Signed into law by Democratic Governor Bob Ferguson, it marks a significant shift as the first income tax in Washington’s history. The tax targets households earning over $1 million annually, imposing a 9.9% rate on income exceeding that threshold. Initial payments are set to start in 2029.
The Seattle Times speculated that Nashville might offer a more enticing environment for Starbucks. While the company asserts that it will maintain its Seattle headquarters, the absence of personal income tax in Tennessee could attract high-income earners related to the coffee chain.
Starbucks’ 2026 proxy statement revealed that several of its executive officers made over $6 million in total compensation last fiscal year. Furthermore, wages in Nashville are reportedly lower than in Seattle, making the city attractive for businesses, especially in light of recent workforce shifts. Data from the U.S. Bureau of Labor Statistics shows that the average hourly wage in Nashville is about 5% lower than the national average and significantly lower than Seattle, especially in tech sectors.
Fox News Digital reached out for comments and received an April report in which Starbucks’ chief partner officer, Sara Kelly, outlined plans for growth in Nashville. She noted that the new office would complement their operations in Seattle, with 2,000 expected positions in Nashville over the next five years. However, the majority of the support team will still be based in Seattle, suggesting some reshuffling of roles as part of their expansion strategy.
