As an e-commerce seller, you will need to collect sales tax in Washington if you have:
(1) gross income of the business exceeding $100,000 in preceding or current year (economic nexus), or
(2) physical presence in Washington (physical nexus).
Below, we will highlight some of the basic provisions of Washington sales tax law.
What is the tax rate range for Washington?
State: Washington’s general sales tax rate is 6.5%.
Local: Washington localities impose their own sales tax at rates ranging from 0% to 4.1%. Local sales & use tax
Do you have physical or economic nexus in Washington?
Physical nexus. Certain business activities create physical nexus in Washington. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Washington. Examples of business activities that can create physical nexus in Washington include:
- Having an employee working in the state.
- Having real or tangible personal property in the state.
- Having a stock of goods in Washington, including inventory held by a marketplace facilitator or another third party representative.
- Renting or leasing tangible personal property in Washington.
- Having an agent or third-party representative engage in activities that are significantly associated with establishing or maintaining a market in the state.
Economic nexus. Remote sellers and marketplace facilitators that have gross income of the business exceeding $100,000 in preceding or current year must collect and remit Washington sales and use tax on taxable sales. Additional information:
- Calculate the threshold using all of your retail sales (taxable and exempt) to Washington customers, including sales made through a facilitator, through your own website or otherwise.
- At the time you meet the threshold, you are required to collect for the remainder of the current and the following calendar year. If you did not meet the threshold in the previous year, you must begin to collect on the first day of the month that starts at least 30 days after the date you met the threshold.
- You are also required to register to report B&O tax if you meet the gross income threshold. TaxCloud can file the B&O tax on your behalf in the state of Washington, please contact 1-877-829-2568 or firstname.lastname@example.org to request filings.
Remote sellers and Marketplace facilitators
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Digital goods
- Leases and rentals of tangible personal property
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Food (except dietary supplements, soft drinks, bottled water, and prepared food)
- Prescription drugs
- Manufacturers’ machinery and equipment
Are there any sales tax holidays?
Currently, Washington does not have any sales tax holidays.
Is Washington a member of the SST (Streamlined Sales Tax)?
Currently, Washington is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Washington?
You can register online at:
Streamlined Sales Tax Registration System