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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 Sales Tax Rates
State Rate

6.500%
Range of Local Rates

0.5% – 4.2%
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

9/1/2015 – repealed effective 3/14/2019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1/1/2018 – repealed effective 7/1/2019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
Sales Tax Amnesty
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.

Status

Inactive

Amnesty Filing Dates

February 1- May 31, 2026

Go to Washington Amnesty Page
AMNESTY INCLUSION PERIODS

Limited four-year plus the current year lookback period for business and occupation (B&O) taxes and twelve months for uncollected retail sales tax

TAX TYPES AND CONDITIONS

The business must be headquartered outside of the United States, must not have an active registration with or have reported taxes to the Washington DOR in the statutory period (four years plus the current year), must not have been contacted by the DOR for enforcement purposes within the statutory period, and must not have engaged in tax evasion or misrepresentation. Businesses who have collected but not remitted sales tax will be subject to an unlimited lookback period and a 29% late payment of a return penalty only for collected and unremitted amounts.
AMNESTY BENEFITS

Limited lookback, waives up to 39% in potential penalties, and unremitted liabilities can be summarized by the DOR in a single assessment

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
State Tax Web Page

Washington Department of Revenue
Rate Look-Up Page

Washington Sales Tax Rate Look-Up
Registration Link

Register for Washington Sales Tax
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.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

Washington Addresses Taxation of Compressed and Liquefied Natural Gas used for Transportation

Washington has passed legislation that provides an exemption from public utility tax (PUT) for sales by gas distributors of compressed natural gas or liquefied natural gas that is to be sold or used as a transportation fuel. Additionally, business and…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Washington Repeals Exemption for Certain Phone Services

In response to changes in technology and deregulation, to make its laws more current with telecommunication offerings, and due to a 2011 court decision regarding the interpretation of residential telephone service, Washington’s sales tax exemptions for residential telephone service and…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Washington’s Nonresident Sales Tax Exemption Does Not Apply to British Columbia Residents

Washington has reminded taxpayers that British Columbia residents do not qualify for the state’s nonresident sales tax exemption. The exemption is only available to residents of a state or province with a sales tax rate of less than 3%. The…

Independent Contractor Speakers Create Nexus in Washington

An out-of-state company has nexus with Washington and is subject to state business and occupation tax because independent contractor speakers who made presentations at live seminars in Washington for the company were representative third parties.

Washington Clarifies Manufacturing Exemption

The Washington Department of Revenue issued a notice clarifying the sales and use tax exemption for manufacturing machinery and equipment. Recently enacted legislation made several clarifications for the purposes of the exemption: state agencies are not manufacturers; public service businesses…

In-State Subsidiary Creates Nexus in Washington for Mail Order Retailer

An out-of-state mail order company was determined to have substantial nexus in Washington due to the activities of one of its in-state sister entities. The sister company sold gift cards to customers that could be used to place catalog orders…

Washington Manufacturer Liable for Tax On Chemicals Used in Etching Process

A Washington Manufacturer of Electronic Products was liable for use tax on chemicals utilized in the etching of patterns on wafers used in the manufacturing process. In order to qualify for the tax exemption, the primary purpose of the chemical…

Washington Provides Guidance on Taxation of Digital Products.

The Washington Department of Revenue has provided guidance on legislation addressing the sales and use tax and business and occupation (B&O) taxation of digital products. H.B. 2620 provides exemptions for digital products. If a business purchases digital goods solely for…

Washington Enacts 2011 Amnesty Program

The Washington Department of Revenue has enacted a tax amnesty program that runs from February 1, 2011 through April 30, 2011. The amnesty program waives penalties and interest on delinquent state and local sales and use taxes, state business and…

Washington Refund Requests for Local Brokered Natural Gas Use Tax to Be Denied.

The Washington State Supreme Court overturned the Court of Appeals decision in G-P Gypsum Corp. v. Department of Revenue, and upheld the Department of Revenue’s decision that local brokered natural gas (BNG) use tax is imposed where the gas is…

Washington Adopts Rules on Nexus Standards, Single Factor Receipts Apportionment

Effective June 1, 2010, four new rules have been adopted by the Washington Department of Revenue to implement legislative changes regarding business and occupation (B&O) tax nexus and apportionment. The legislation (Ch.23 (S.B. 6143), Laws 2010, 1st Special Session) established…

Washington Commercial Printer Must Follow Destination-Based Sourcing

As Washington follows the Streamlined Sales and Use Tax Agreement’s destination-based sourcing rules, a commercial printer that performs bid distribution and other printing jobs was required to source its print jobs and sales of paper and supplies to the location…

Exemption for Computer Data Centers Enacted in Washington

Washington passed legislation which allows a sales and use tax exemption for the sales of eligible server equipment to be installed in qualifying computer data centers. To be eligible, a computer data center must be located in a rural county,…

Incentives for Aircraft Repair Stations, Clean Fuel Vehicles, Certain Manufacturing Facilities Extended in Washington

Washington has extended the 0.2904% business and occupation tax rate for Federal Aviation Regulation part 145 certified repair stations from July 1, 2011 to July 1, 2024. The legislation also extends, through December 31, 2015, the sales and use tax…

Washington Insurance Company Created Nexus for Affiliated Mail Order Pharmacy

The Washington Department of Revenue has determined that business and occupation tax is due on an out-of-state mail order pharmacy’s sales to an in-state affiliated insurance company’s benefit plan subscribers. The insurance company’s and/or its representatives distributed brochures containing information…

Washington’s Tax Incentives for the Aluminum Industry Extended

The State of Washington has extended the sunset date of business and occupation (B&O) and sales and use tax incentives for the aluminum industry to January 1, 2017. The incentives were originally set to expire on January 1, 2012. The…

Washington Rate Change Rule Amended

Effective April 23, 2010, the Washington Department of Revenue has amended a rule that provides specific guidance for the effect of sales tax rate changes for persons performing retail services such as repairing property and construction buildings. The amended rule…

Taxation of Digital Products and Services in Washington Explained

The Washington Department of Revenue issued a notice explaining Engrossed Substitute House Bill 2075, which affects the taxability of digital products. Beginning July 26, 2009, all digital products, regardless how they are accessed, will be subject to sales or use…

Washington Readopts Reseller Permit Rules

Two sales and use tax emergency rules have been readopted by the Washington Department of Revenue. The rules explain the application process and eligibility requirements for reseller permits and the brief adjudicative proceedings for matters related to reseller permits. Beginning…

Employee Visits in Washington Establishes Nexus

An out-of-state manufacturer of vapor barriers and insulation facings established nexus in Washington state for business and occupation (B&O) tax purposes.

Washington Amends Rule on Motor Vehicle and Special Fuels Exemption

The Washington Department of Revenue has amended its rule on motor vehicle and special fuels exemptions as they relate to public transportation benefit areas (PTBA), county owned ferries, and county ferry districts. The amendment provides exemptions from sales and use…