Seattle Opportunity Zones

Seattle sits within Washington, which is running its own OZ 2.0 selection process under the federal framework. The state's lead agency is Washington Department of Commerce. Washington has 394 census tracts eligible under OZ 2.0 — it can nominate up to 99 to Treasury.

80 eligible tracts fall in Seattle's constituent county (King County) per the IRS Rev. Proc. 2026-14 appendix — the same county totals shown on the state page. OZ 2.0's tightened eligibility criteria — median family income at or below 70% of the state/metro reference (down from 80% under OZ 1.0), with the contiguous-tract option eliminated — means fewer Seattle neighborhoods qualify than under the 2018 OZ 1.0 map. How states choose OZ 2.0 tracts →

For investors targeting Seattle, the OZ 2.0 tax benefits — rolling 5-year deferral, 10% basis step-up (or 30% for Rural QROFs in qualifying rural tracts), and 100% federal-tax-free exclusion of QOF appreciation after a 10-year hold — apply to investments made on or after January 1, 2027. See the full OZ 1.0 vs 2.0 comparison →

What Seattle's demographics imply: with a median household income of $110,781 and a 9.2% poverty rate, Seattle is likely to retain a meaningful share of designated tracts in higher-poverty census areas, while higher-income neighborhoods that qualified through the contiguous-tract pathway under OZ 1.0 will lose designation under OZ 2.0.