2024 Guide to Sales Tax in Seattle, Washington

What is the Sales Tax in Seattle?

Seattle has a combined sales tax rate of up to 10.40%. In Washington, the sales tax rate includes different components:

• The Washington state sales tax rate: 6.50%
• A King County sales tax rate: 0.00%
• A Seattle city sales tax rate: Up to 3.85%
• Special sales tax rates: Up to 0.90%

What is King County Sales Tax?

King County does not have an additional sales tax beyond the state rate. Instead, specific city and special district rates apply. This structure simplifies the overall tax calculation but requires attention to special district rates.

Tax Rates in Seattle, Washington

Curious about the variation in sales tax rates in Seattle? Here’s a breakdown of the sales tax rates for the top 10 zip codes in Seattle:

Other Tax Rates for Seattle

In addition to the main tax rates, here are some other tax rates that might apply to your business in Seattle:

What Items are Taxable in Seattle?

In Washington, not all items are subject to sales tax. For example, certain types of food and medical products may be exempt. To ensure you are charging the correct tax, consider adding a Tax Information Code (TIC) to each item you sell. A TIC is a unique identifier that categorizes goods or services.

Here are some examples of taxable items in Seattle:

What Items are Exempt from Taxes in Seattle?

Washington exempts several items from sales tax to encourage their purchase or because they are deemed essential. To avoid mistakenly charging tax on exempt items, apply a Tax Information Code (TIC) to each of these products.

Here is a list of some tax-exempt items in Seattle:

Who Needs to Collect Sales Tax in Seattle?

Businesses must collect sales tax in Seattle if they have either a physical presence (nexus) or an economic nexus in Washington.

What is Physical Nexus in Washington?

Physical nexus in Washington means that your business has some kind of physical presence in the state. This can include having an office, warehouse, employees, or a significant amount of inventory within the state.

What is Economic Nexus in Washington?

If your business doesn’t have a physical presence in Washington, you can still be required to collect sales tax if you exceed the economic nexus threshold. This is defined as making $100,000 in sales or 200 transactions in the state within a year.

How you qualify for economic nexus in Washington (full details):

• Count all sales into Washington, including wholesale transactions, toward your $100,000 sales threshold or 200 transactions.
• Sales made through a marketplace where the facilitator collects tax on your behalf do not count toward the threshold.
• Once you reach the threshold, you must register for sales tax in Washington and begin collecting and remitting the appropriate taxes.

How to Get a Sales Tax Permit in Seattle?

If your business meets the physical or economic nexus criteria, you’ll need to obtain a sales tax permit in Washington. This process is simple and free.

Here are the steps:

1. Visit the Washington Department of Revenue website.
2. Complete the online registration form with details about your business.
3. The system will identify the necessary permits and register you for them.
4. You’re all set!

For more information, refer to the State of Washington’s Sales Tax website.

How Do You Charge the Right Amount for Sales Tax in Seattle?

Ensuring you charge the correct sales tax in Seattle can be challenging due to potential rate changes and differing rates across regions. Here’s how to stay compliant:

1. Manually update rates: Keep track of changes by regularly checking the Washington Department of Revenue’s website. This approach requires updating your ecommerce platform frequently to ensure accurate tax rates.
2. Use sales tax software: Automate the process with sales tax compliance software like TaxCloud. These tools update rates automatically across all jurisdictions, saving you time and reducing errors.

How Do You File and Remit Sales Tax in Seattle?

Do you need to file sales tax returns specifically for the city of Seattle or King County? No, you don’t. If you have sales tax nexus in Washington, you collect sales taxes from across the state and file a single state-wide return. The Washington Department of Revenue will then distribute the funds to the appropriate city or county.

If filing Washington sales taxes is time-consuming for you, TaxCloud can help. Our platform automates the entire sales tax management process, from tracking nexus and registering for sales tax to filing returns. With TaxCloud, you can focus on growing your business while we handle your sales tax compliance.

Learn how TaxCloud can simplify sales tax for your business.