Washington Sales Tax
Washington Sales Tax At a Glance
State rate: 6.5%
Maximum combined rate: 10.7%
Sourcing: Destination
Tax Holidays: None
Governing Body: Washington Department of Revenue
Retailers who make sales to Washington customers may be required to collect sales tax in the state. Determining nexus and then figuring out Washington sales tax rates can be complicated. This guide will help determine whether you are on the hook for Washington sales tax.
Washington Sales Tax Rates
Washington operates a unique two-part state business tax system:
- Retail Sales Tax: A statewide base tax of 6.50% plus local city, county, and transit authority taxes. Combined total rates across the state range between 7.00% and 10.70% depending on the location.
- Business & Occupation (B&O) Tax: Washington does not have a state corporate or personal income tax. Instead, the state levies a gross-receipts B&O tax on virtually all businesses operating or making sales in Washington. This tax must be paid out of pocket by the business—it cannot be added as a separate line item to customer bills.
Tax Sourcing
Washington uses destination-based sourcing for all sales shipped or delivered into the state.
The exact sales tax rate is determined by the specific street address where your buyer receives the item or service. Because local tax boundaries vary across city lines and mass transit zones, tax rates must be calculated down to the specific delivery location.
Washington Nexus
Physical Nexus
Your business must register and collect Washington sales tax if you establish any physical presence in the state, including:
- Physical offices, retail locations, warehouses, or storage facilities.
- Remote employees, sales agents, independent contractors, or representatives operating in the state.
- Storing inventory or products in a local third-party fulfillment center or warehouse.
Economic Nexus
Out-of-state remote sellers trigger economic nexus for both Retail Sales Tax and B&O Tax when reaching the state threshold:
- $100,000 in total gross receipts delivered into Washington during the current or prior calendar year.
- Gross Income Rule: The $100,000 threshold includes all gross receipts sourced to Washington—combining taxable retail sales, tax-exempt orders, wholesale sales, and orders facilitated through online marketplaces.
- Washington does not use a transaction count threshold (there is no 200-transaction trigger).
Marketplace Facilitators
Marketplace providers (such as Amazon, Etsy, or eBay) are required to collect and remit sales tax on all sales they facilitate into Washington. However, those marketplace sales still count toward your own $100,000 economic nexus threshold. If you also sell directly through your own website, crossing the threshold requires you to register and collect tax on your direct sales.
What is Taxable in Washington
Tangible Goods
All retail sales, rentals, or leases of physical goods are fully taxable unless specifically exempted by state law.
Services
While general professional services are exempt, Washington taxes several specific service categories:
- Construction, alteration, repair, and cleaning of physical personal property.
- Landscaping, lawn maintenance, and janitorial work.
- Information technology (IT) support, website development, and custom software services.
Shipping and Handling
Delivery, freight, and shipping fees charged by the seller are taxable whenever they are connected to the sale of a taxable product. If the item being shipped is tax-exempt, the associated delivery charge is also exempt.
Digital Goods and Services
Software as a Service (SaaS): Taxable. Washington treats cloud-hosted software and remotely accessed applications as taxable prewritten software for both sales tax and B&O tax.
Digital Media: Downloads or streaming access for digital books, music, video, and automated digital services are fully taxable.
Custom Software: Standalone custom software written from scratch for a single buyer is exempt from sales tax, though it is subject to the service category for B&O tax.
Exemptions
Groceries: Unprepared food staples and grocery items are exempt from retail sales tax. Prepared food, hot meals, and soft drinks remain fully taxable.
Prescription Medicine: Prescription drugs and qualifying medically prescribed devices are exempt.
Washington Sales Tax Holidays
Washington does not host an annual sales tax holiday.
Registration and Filing
Washington businesses are required to apply for a license if they:
- sell any retail items
- gross retail sales over $12,000 per year
- repair, alter, decorate, or improve a product for another customer, or
- are liable for any other state taxes
Also taxable are some services within the state, including construction, recreation, and personal services such as tattooing. There is a select list of other taxable services as well, including but not limited to car washing, equipment rental, title insurance, and catering. It is recommended that you review the full list of taxable services on the Washington Department of Revenue website for full tax compliance.
Applying for a business license can be done online, by mail, or in person at any business licensing office.
Check out the Department of Revenue’s site for:
- State tax registration and information. You can file online, by mail or in person.
- Business license applications filed online take 2 business days or less to process; paper applications (by mail or in person) can take up to 21 days.
- New Business Tax Basics (PDF)
Sales tax returns can be filed electronically online, or by completing a paper return and sending it in by mail. Information about filing your sales tax return can be found here. Make sure of the rules that apply to you, however, as most businesses are required to file online. The Washington Department of Revenue accepts payment online via EFT (electronic funds transfer), eCheck, and credit card.
If you have no business activity within a given period, you may file such online, by phone or by mail. Details for filing no business activity can be found here.
Filing Frequencies and Deadlines
Washington requires corporations and small businesses to file and pay sales taxes either monthly, quarterly, or annually. Your business’s estimated yearly income determines the frequency with which you must file. Your designation can be found in the packet provided when you registered to collect sales taxes for Washington state.
Monthly Filers
Monthly tax returns are due on the 25th of the following month.
| Period | Due Date |
|---|---|
| January | February 25 |
| February | March 25 |
| March | April 25 |
| April | May 25 |
| May | June 25 |
| June | July 25 |
| July | August 25 |
| August | September 25 |
| September | October 25 |
| October | November 25 |
| November | December 25 |
| December | January 25 |
If the due date falls on a weekend or a legal holiday, it is extended to the following business day.
Quarterly Filers
Quarterly tax returns are due the end of the month following the tax quarter. For example, Quarter 1 taxes are due April 30th.
| Period | Due Date |
|---|---|
| January – March (Q1) | April 30 |
| April – June (Q2) | July 31 |
| July – September (Q3) | October 31 |
| October – December (Q4) | January 31 |
Annual Filers
Annual sales tax returns are due January 31st.
If any of the due dates fall on a weekend or legal holiday, the new due date is the following business day. Here is a list of Washington’s state holidays.
Amending Washington Tax Returns
A sales tax return amendment may be filed electronically or by paper. The state also allows taxpayers to provide a schedule of amended figures if multiple periods of a year or more need to be amended. Find more information about amending your return here.
Penalties and Interest
The penalty for filing a late sales tax return in Washington is
- 9% if the tax due on a return is not paid by the due date.
- 19% after the last day of the month following the return’s due date.
- 29% after the last day of the second month following the return’s due date.
The minimum penalty is $5. Waivers may be granted in certain cases.
The state of Washington also charges interest. Interest rates vary by year, and can be found on the Washington Department of Revenue’s website at this location.
Resources:
- Washington State Department of Revenue
- Sales & Use Tax Rate Searchable Lookup Tool
- Sales Tax Rates and Changes
Washington Sales Tax Software
AccurateTax’s TaxTools products completely handle all aspects of Washington’s sales tax rate lookup and calculation for all destinations within the state of Washington, and all special tax classes such as prepared food. Configuring sales tax on your ecommerce store has never been easier. Contact us for more information or register for a free trial of the TaxTools software.
You can also use our free sales tax calculator to look up the rate for any address in the state of Washington.
Last updated July 2026