Washington has a 6.5% state-wide sales tax, with additional local taxes that vary by location. If you sell taxable goods or services in Washington, you may be required to register, collect, and remit sales tax.
Washington also imposes a Business & Occupation (B&O) tax on many businesses, making it important to understand both sales tax and broader business tax obligations.
Washington Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6.5% |
| Local sales tax | Varies by location |
| Economic nexus | More than $100,000 in Washington receipts |
| Transaction threshold | None |
| Sales tax registration | Required when applicable |
| Sourcing | Generally destination-based |
| Additional business tax | B&O Tax |
| Tax authority | Washington Department of Revenue |
When Do You Have Sales Tax Nexus in Washington?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Washington.
- Conducts other qualifying business activities in the state.
- Has more than $100,000 in combined gross receipts sourced or attributed to Washington during the current or previous calendar year.
If you establish nexus, you’ll generally need to register and collect Washington sales tax on taxable sales.
What Is Taxable in Washington?
Washington generally taxes retail sales of tangible personal property, digital products, and a wide range of services. Taxable transactions can include:
- Clothing
- Electronics
- Furniture
- Appliances
- Prewritten software
- Digital goods
- Remote access software
- Digital automated services
- Certain repair and installation services
Common exemptions include qualifying food, prescription drugs, and purchases for resale with a valid reseller permit.
Services Newly Taxable in Washington
Washington significantly expanded its sales tax rules effective October 1, 2025.
Certain services that previously weren’t subject to retail sales tax are now taxable, including many:
- Advertising services
- Information technology services
- Custom website development services
- Security and investigation services
- Temporary staffing services
- Custom software and software customization services
There are exclusions and exceptions, and some rules were further modified in 2026. Businesses providing services in Washington should therefore check their specific service rather than assuming it remains exempt.
How to Register for Washington Sales Tax
Businesses with Washington tax obligations generally register with the Washington Department of Revenue.
The basic process includes:
- Register your business with the Department of Revenue.
- Provide your EIN and business information.
- Obtain the appropriate business and tax registrations.
- Set up access to My DOR.
- Begin collecting sales tax when required.
Businesses should register before beginning to collect Washington sales tax.
Washington Sales Tax Rates
Washington’s statewide retail sales tax rate is 6.5%, with additional local sales taxes that vary by city and county. Businesses should therefore verify the rate applicable to each transaction rather than applying one statewide combined rate. The Department of Revenue provides a Tax Rate Lookup Tool for this purpose.
Washington generally uses origin-based sourcing for in-state sellers, while many remote sellers use destination-based sourcing. Businesses should ensure they apply the correct sourcing rules when calculating sales tax.
Washington B&O Tax
One major difference between Washington and many other states is its Business & Occupation (B&O) tax.
The B&O tax is imposed on gross business income rather than profit, and the applicable classification and rate depend on the type of business activity.
This means a business may need to:
- Collect sales tax from customers, and
- Pay B&O tax on its own Washington business income.
Remote businesses should pay particular attention to this distinction. Even marketplace sellers may have B&O reporting obligations despite the marketplace collecting sales tax on their behalf.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit Washington sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Businesses registered in Washington are assigned a filing frequency by the Department of Revenue. Returns are generally filed through My DOR, and your reporting frequency depends on your business activity and tax liability.
Filing frequency will usually be:
- Monthly
- Quarterly
- Annual
Your filing frequency may change as your business activity changes.
Businesses that fail to file or remit Washington sales tax on time may face late filing penalties, late payment penalties, interest on unpaid tax and collection actions.
Washington Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Monitor the $100,000 economic nexus threshold.
- Register with the Washington Department of Revenue when required.
- Determine whether your products or services are taxable.
- Collect the correct destination-based sales tax rate.
- Account for applicable B&O tax and file returns on time.
FAQs
What is the sales tax rate in Washington?
Washington has a 6.5% state rate, plus local sales taxes that vary by location.
What is Washington’s economic nexus threshold?
Remote sellers generally must register when they have more than $100,000 in Washington gross receipts during the current or previous calendar year.
Does Washington have a transaction threshold?
No, Washington does not have a separate transaction-count threshold.
Are digital products taxable in Washington?
Yes, Washington generally taxes digital goods, digital automated services, and remote access software.
What is Washington B&O tax?
It’s a tax on a business’s gross Washington income, with the applicable classification depending on the business activity. Marketplace sellers can have B&O obligations even when a marketplace handles their sales tax.
Final Thoughts
Washington’s sales tax system can be more complex than many states because businesses need to account for varying local rates, destination sourcing, and B&O tax in addition to standard sales tax requirements. The expansion of sales tax to additional services also makes correct product and service classification particularly important in 2026.
Registering when required, collecting the correct tax, and meeting both sales tax and B&O reporting obligations will help keep your business compliant.
Need help with Washington sales tax registration, filings, or compliance? Contact our tax professionals today.
