This blog was last updated on November 18, 2025
Washington imposes a statewide sales and use tax rate of 6.5%. The state does allow local jurisdictions to levy additional sales taxes.
What’s Taxable in Washington?
Washington sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
- Clothing
- Computer software
- Software as a Service (SaaS)
- Digital Products and Automated Services
- Construction Services
- Certain installation or repair services
- Miscellaneous personal services
Sales Tax Nexus in Washington
A seller is liable to collect and remit Washington sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Washington: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Washington.
Washington: Economic Nexus
Washington enforces economic nexus for remote sellers. If your business has:
- Has $100,000 in in cumulative gross receipts attributed to Washington during the current or previous calendar year;
you may be required to register for and collect Washington sales tax.
Learn more on the Washington Department of Revenue Out of State Businesses Reporting Thresholds and Nexus guide.
Washington Sales Tax Exemptions
Certain sales in Washington are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
- Non-retail services (unless Washington statutes specify otherwise)
- Food and food ingredients
- Specified agricultural items
- Specified medical equipment
- Medicines issued pursuant to a prescription
Entity or Use Based Exemptions
Additionally, Washington exempts sales to certain entities from the sales/use tax, including the following:
- Certain wholesalers
- Retailers selling for resale
- Red Cross and similar relief organizations
How to Claim Sales Tax Exemption in Washington
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts:
Form: 27 0032: Retail Sales Tax Exemption Certificate,
Form F0003: Streamlined Sales Tax Exemption Certificate
Washington Filing and Remittance Requirements
All businesses are required to file and pay electronically
Washington offers multiple methods for filing and remitting sales and use tax:
- E-filing through File or Amend my return
- Simplified Electronic Return (SER) for SST participants and their affiliates
- Paper filing (waiver required):
- Combined Excise Tax Return – Monthly
- Combined Excise Tax Return – Quarterly
- Combined Excise Tax Return – Annual
Washington provides various electronic options for filing and remitting sales and use tax, ensuring compliance is both efficient and accessible for businesses. Understanding the state’s participation in the Streamlined Sales Tax initiative and awareness of applicable point-of-sale fees can help businesses maintain accurate tax practices and avoid potential issues. Staying informed about current requirements and available resources will support continued compliance with Washington’s tax regulations.
Frequently Asked Questions
Is Washington a part of the Streamlined Sales Tax (SST) initiative?
Yes, Washington is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does Washington have sales tax holidays?
No, Washington does not currently offer sales tax holidays.
Are there any special point of sale fees in Washington?
- Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Washington imposes the following point of sale fees:E911
- E988
- Tire Fee
- Syrup Fee
- Bag Fee
- Paint Fee
Does Washington apply sales tax to shipping charges?
Generally, Washington applies sales tax to shipping charges if the underlying goods are subject to sales tax. If an invoice contains a single shipping charge for a mixed shipment of taxable and exempt goods, the sales tax will apply to the percentage of the shipping charge attributed to the taxable goods. When allocating the shipping charge business may base the percentage allocated to the taxable goods on either the price or weight of the taxable goods.
For sourcing sales tax, is Washington origin or destination based?
Washington follows destination-based sourcing for sales tax purposes.
What is the difference between Business and Occupation Taxes and Sales Tax?
The sales tax is a tax imposed directly on retail sales which businesses are required to charge to their customers.
The business and occupation tax (B&O) is a tax for the act or privilege of engaging in business activities which is imposed on a percentage on the business gross proceeds of sales or gross income of the business. The rate of the B&O tax is based on the type of business. B&O taxes are paid by businesses and are not directly charged to their customers.
It is worth noting that the retailing category of the B&O tax uses the same definition of retail sales as the sales tax.
How does Washington tax software and digital goods?
Washington imposes sales tax on sales of software regardless of the method of delivery of the software. As a result, there is a Washington sales tax on digital goods and software. Beginning October 2025, Washington has extended the sales tax to custom software and software customization where previously the state limited the scope of the tax to prewritten software.
Washington also applies sales tax to sales of digital goods and digital automated services. The state excludes some services, such as data storage and certain financial services, from the tax on digital automated services however the scope of these exclusions was significantly reduced starting October 1, 2025. Finally, the state recently expanded the scope of the sales tax to apply to various IT related services such as software implementation services, software consulting, and IT support services.
Can I use the Simplified Electronic Return (SER) in Washington if I’m not in the SST Model 1 program?
Yes. Washington accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method];
How to Register for a Washington Sales Tax License?
Washington businesses or individuals selling tangible personal property or certain services to Washington consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Washington and beyond? Learn how Sovos simplifies compliance.