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% – 3.9%

Local Rates Apply to Use Tax

Yes

CLICK-THROUGH NEXUS

9/1/2015

REPORTING REQUIREMENTS

1/1/2018

ECONOMIC NEXUS

B&O Tax 7/1/2017; Sales Tax: 1/1/2018 as alternative to Notice/Reporting; 10/1/2018 for remote sellers exceeding $100,000/200 transactions – 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.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

Washington Issues Guidance on the Taxability of Unredeemed Gift Cards

Washington has addressed options for businesses to report or recognize income from unredeemed and abandoned gift cards.

Washington Provides Guidance on Taxability of Federal Government Employee Purchases

Washington has provided guidance informing federal government employees that their purchases are only exempt from Washington sales tax if they are paid for by the federal government.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Washington Issues Guidance for Remote Sellers following Wayfair Decision

Remote sellers exceeding Washington’s economic nexus threshold must register and collect tax beginning October 1, 2018.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Washington Enacts Referrer, Marketplace and Reporting Requirements Legislation, Expands Economic Nexus Provisions

Effective January 1, 2018, remote sellers, referrers, and marketplace facilitators must elect to either collect and remit Washington sales or use tax on taxable sales into Washington or comply with notice and reporting requirements.

Washington Offers Marketplace Fairness Penalty Reduction Program

The Washington State Department of Revenue has announced its Marketplace Fairness Penalty Reduction Program to help businesses comply with the state’s marketplace nexus legislation, which became effective January 1, 2018.

Taxpayer Providing Digital Certificates Does Not Qualify for Human Effort Exclusion

A taxpayer that provides digital SSL certificates to businesses hosting commercial websites was liable for Washington sales tax and retail business and occupation tax.

In-State Repair Services for Nonresidents are Taxable in Washington

The Washington Department of Revenue has issued guidance regarding the taxability of repair services for nonresidents of Washington. Tangible personal property repair services performed in Washington for customers located outside of Washington are subject to Washington business and occupation (B&O)…

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Remote Seller Compliance Deadlines Approaching for Multiple States

Remote seller compliance deadlines are approaching for a number of states with deadlines of February 28 or March 1.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Washington Adjusts Economic Nexus Thresholds for B&O Tax

The Washington Department of Revenue has issued revised economic nexus thresholds for state business and occupation tax purposes, effective January 1, 2018.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Washington Issues Guidance on New Tax Preference Transparency Requirements

\”Tax preference” means an exemption, exclusion, deduction, credit, deferral, or preferential rate for a tax administered by the Department of Revenue. New tax preferences automatically expire in 10 years unless an express expiration date applies.

Company Liable for Deferred Washington Sales Tax Under Community Empowerment Zone Program

A manufacturer that was granted a community empowerment zone deferral of Washington sales tax was liable for the deferred taxes because it failed to hire the number of employees required by the program.

Evasion Penalty for Failing to Remit Sales Tax is Upheld in Washington

A contractor was subject to the Washington evasion penalty because it billed and collected sales tax from customers but failed to remit it to the Washington Department of Revenue.

In-State Activity Created Nexus for Taxation of Drop Shipments in Washington

A distributor was found liable for business and occupation tax on national and drop-shipped sales because it failed to show that its activities in Washington are not associated with its ability to establish and maintain a market in-state.