State business advocates say more employers are looking to exit the state, largely because of increasing tax burdens. 

More than 400 employers responded to the Association of Washington Business’ spring survey, according to a release. And roughly one in four of them said they are looking to move their business out of the state, and more than half said they are looking to move their personal residence elsewhere. 

“And it isn’t just that businesses are looking to leave,” said AWB President Kris Johnson in a statement. “Business owners are moving taxable assets out of Washington, they aren’t planning to hire as many workers, they’re growing more worried about a recession, and they’re far more likely to expand their businesses in another state than they are to grow here in Washington.” 

He added: “We hope that policymakers will regard this as the emergency that it is and respond by developing a pro-growth agenda aimed at keeping businesses from leaving the state, and creating the conditions for businesses to start, grow and thrive right here in Washington.” 

The survey also collected data on what steps, if any, business owners had taken to follow through on their plans to leave:  

• 35% said they are in the beginning stages of exploring a business move. 
• 28% are actively searching for locations.  
• 18% are developing a relocation plan.  
• 6% have already relocated part of their business.  
• 3% are in the process of relocating.  

For those looking to move their home, more than half are looking for properties outside the state, 44% are consulting with a CPA or tax professional, and 18% already own a home or condominium in another state. 

“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,” Johnson said. “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. 

Among the survey’s other findings: 

• 72% of respondents rate Washington’s overall tax burden as a top business challenge, with healthcare at 65%, government regulations at 58%, the cost of fuel at 53% and inflation at 51%. 
• 46% expect a recession in the next year, up from 34% last quarter and up 29 points since winter 2025. 
• While concerns about tariffs have dropped, more than half, or 56%, continued to report negative impacts from tariffs. 
• 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% plan to expand in another state, up from 21% in winter 2025 

To view the full survey results, go to: awb.org/wp-content/uploads/AWB_EMP_Survey_Spr26_043026.pdf.