Washington Sales Tax

On this page you will find handy sales and use tax information about Washington.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Washington that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

6.500%

Range of Local Rates

0.5% – 4.1%

Local Rates Apply to Use Tax

Yes

CLICK-THROUGH NEXUS

9/1/2015repealed effective 3/14/2019

REPORTING REQUIREMENTS

1/1/2018 – repealed effective 7/1/2019

ECONOMIC NEXUS

B&O Tax: 7/1/2017

Sales Tax as alternative to Notice/Reporting: 1/1/2018

Economic Nexus: 10/1/2018 – see state notice

MARKETPLACE NEXUS

1/1/2018

Status

Inactive

Amnesty Filing Dates

June 1, 2015 - June 30, 2015

Go to City of Tacoma Amnesty Page
AMNESTY INCLUSION PERIODS

Applies to local City of Tacoma business tax and license fees due April 30, 2015 or earlier.

TAX TYPES AND CONDITIONS

Local City of Tacoma business tax and license fees. The amnesty program applies to the following taxes: Business and Occupation (B&O) Taxes; Private Utility Taxes; Admissions Taxes; Gambling Taxes; Annual Business License Fees; Regulatory License Fees; and Unreported Liabilities.

AMNESTY BENEFITS

Interest and penalties waived, 50% of civil penalties waived.

Status

Inactive

Amnesty Filing Dates

February 1, 2011 to April 30, 2011

Go to Washington Amnesty Page
AMNESTY INCLUSION PERIODS

All tax liabilities due before February 1, 2011.

TAX TYPES AND CONDITIONS

Amnesty applies to state and local sales and use taxes, state business and occupation taxes, and state public utility taxes. Included in sales and use taxes are general retail sales and use taxes, rental car taxes, King County food and beverage tax, additional sales and use tax on sales and leases of motor vehicles, lodging taxes (not including tourism promotion area lodging charges), and brokered natural gas use tax. Application must be filed by April 18, 2011.

AMNESTY BENEFITS

Waiver of all interest and penalties for all tax returns due prior to November 25, 2010.

Administration Information
Streamlined Sales Tax Status

Full Member

NUMBER OF TAXING AUTHORITIES

371 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

25th of month following reporting period. Other filing periods: last day of month following reporting period.

Exemption Information
RESALE CERTIFICATE

Washington Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: food, prescription drugs, sales to nonresidents, manufacturers’ machinery and equipment, newspapers, and more

 

Entity types of exemptions: federal government sales, interstate and foreign sales, sales to Indians or Indian Tribes

 

Washington Exemption Certificate Forms

State Links
History & Fun Facts
HISTORY

Washington imposed its retail sales tax and compensating use tax to supplement the retail sales tax beginning in 1935.

 

Washington became a full member of the Streamlined Sales and Use Tax Agreement by conforming its legislation, effective July 1, 2008.

FUN FACTS
  • Washington has an enhanced food fish excise tax that commercial fishers may be liable for in addition to B&O tax. “Enhanced food fish” include species of food fish, shellfish, and anadromous game fish caught in Washington territorial and adjacent waters, and several other additional fish.
  • Washington does not impose a state income tax, however it does have a Business and Occupation (B&O) tax. This is in addition to retail sales tax on all sales subject to the retailing classification of the B&O Tax. The rate ranges from .471% to 1.5% depending upon the classification.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

Washington issues interim statement regarding the taxability of non-fungible tokens

Purchases of non-fungible tokens, or NFTs, are taxable in most cases and sellers of NFTs are subject to Washington business and occupation (B&O) tax on gross proceeds, according to an interim statement provided by the Washington Department of Revenue in July.

Washington Taxes Account Access Services

The Washington Department of Revenue (DOR) denied a company seeking to claim sales tax exemptions for their account access services to credit unions.

Washington Enforces Collection of Sales Tax for Renewable Energy Equipment Sales

Washington Department of Revenue held a taxpayer accountable for collecting sales tax on their retail sales to a renewable energy company.

Service Providers: Don’t Assume You Are Always Tax-Free!

Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Washington Subjects Computer Storage Space to B&O Tax

The Washington Department of Revenue determined that a taxpayer providing customers space in a secure facility in which to store computer equipment and pair it with internet access services is subject to the state’s Business & Occupation (B&O) tax.

Washington Taxpayer Denied M&E Exemption After Proving to Not be a Manufacturer

A Washington hardware provider was denied the state’s machine and equipment (M&E) sales tax exemption for their purchases of plastic injection molds used to house their hardware system.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Western State Sales Tax Updates

Explore some important sales tax updates coming out of Western states so you can get caught up and make any changes as necessary to keep your company compliant.

Washington Requires Businesses to Charge and Collect Sales Tax for Reusable Carryout Bags

The Washington Department of Revenue has issued a special notice regarding the collection of sales tax on reusable bags purchased by customers.

Washington Provides Clarity on Application of Sales and B&O Tax to Online Classes

The state of Washington has published an article clarifying the application of sales and business and occupational taxes to providers of online classes.

Ride Share Vehicles in Washington Exempt from Sales Tax

Beginning September 1, 2021, vehicles purchased for certain ride-share programs will qualify for sales and use tax exemption.

Washington State Rules Against For-Profit College in Business and Occupation Tax Ruling

The Washington Department of Revenue Administrative Review and Hearings Division has ruled against a for-profit college\’s appeal of their Business and Occupation tax assessment on the basis that the college did not meet the state definition of an educational institution.

Washington DOR Issues Guidance Regarding Location of Sale for Sales Tax Collection

The Washington Department of Revenue simplified its “destination-based” sourcing rules that retailers must correctly recognize the sales tax to impose on charges related to any retail sales transaction.

Washington Amends Lease and Rental Excise Tax Rule for Certain Construction Scenarios

The Washington rule on leases or rentals of tangible personal property has been amended to clarify the state’s polices for specific construction services like concrete pumping.

Digital Reassignment of Inventory Creates Substantial Nexus in Washington

A remote seller who makes sales through a marketplace facilitator established physical presence nexus in Washington by having inventory digitally reassigned there.

Washington Enacts Exemption for Feminine Hygiene Products

Effective July 1, 2020, Washington has enacted a permanent exemption for feminine hygiene products.

Washington Enacts Additional Service and Other Activities B&O Tax Rate to Fund Workforce Education

Washington has created an additional B&O tax rate under the Service and Other Activities classification to fund Workforce Education.

Washington Updates Taxability Rule on Political Subdivision Sales and Purchases

Washington updated its rules on exemptions on sales between political subdivisions.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Refund Denied in Washington Since Taxpayer Website Advertised Tax Included

A taxpayer was denied a refund of Washington retail sales tax remitted on its ticket sales since the taxpayer’s website advertised the ticket prices as including tax.

Point-of-Sale Services Subject to Washington Sales and Use Tax

The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.