Washington Sales Tax Guide 2025: A Step-by-Step Guide for Businesses

Washington Sales Tax: 2025 Overview

Sales tax in Washington is a 6.5% statewide rate in 2025, with local taxes of up to 4%, resulting in combined rates as high as 10.5%. Washington does not participate in the Streamlined Sales Tax initiative (SSUTA), and its tax base includes digital goods and many services.

Businesses operating in Washington must account for significant local rate variations, especially in urban areas.

Washington Sales Tax Due Date

In Washington, the due dates for paying sales taxes depend on your assigned filing frequency, which is determined by your total taxable sales and tax liability.

Filing Frequency	Criteria	Due Date
Monthly	Required for businesses with $4,800 or more in taxable sales per year.	Due on the 25th of the following month.
Quarterly	For businesses with $1,000–$4,799 in taxable sales per year.	Due on the 25th of the month following the quarter (e.g., April 25 for Q1).
Annually	For businesses with less than $1,000 in taxable sales per year.	Due on January 31 of the following year.

Key Notes

• If the due date falls on a weekend or holiday, payments are typically due on the next business day.
• Late filings or payments may result in penalties and interest, so timely compliance is essential.
• Payments and filings can be completed through the My DOR Portal.

Washington State Sales Tax Rate in 2025

Washington imposes a statewide sales tax of 6.5%, with additional local sales taxes that can bring the combined rate up to 10.6% in some areas.

Tax Type	Rate	Description
State Sales Tax	6.5%	Applies to most retail sales of tangible personal property and certain services.
Local Sales Tax	Varies by Location	Additional sales tax imposed by cities and counties, ranging from 0.5% to 4.1%.

Notes

• Washington applies sales tax to digital goods and services, making it one of the more inclusive states for digital taxation.
• The total sales tax rate depends on the location of the transaction, combining state and local rates.

2025 Washington Local Sales Tax Rates Table

Below is a table highlighting the 20 largest cities in Washington along with their respective local and combined sales tax rates:

City	Local Sales Tax Rate	Total Sales Tax Rate
Auburn	4.0%	10.5%
Bellevue	4.0%	10.5%
Bellingham	3.9%	10.4%
Everett	4.0%	10.5%
Federal Way	4.0%	10.5%
Kent	4.0%	10.5%
Kirkland	4.0%	10.5%
Olympia	3.9%	10.4%
Redmond	4.0%	10.5%
Renton	4.0%	10.5%
Seattle	4.0%	10.5%
Spokane	3.9%	10.4%
Tacoma	4.0%	10.5%
Vancouver	3.9%	10.4%
Yakima	3.9%	10.4%
Lakewood	4.0%	10.5%
Lynnwood	4.0%	10.5%
Puyallup	4.0%	10.5%
Shoreline	4.0%	10.5%
Woodinville	4.0%	10.5%

Notes

• Washington imposes a statewide sales tax of 6.5%, with local jurisdictions adding up to 4%, resulting in combined rates as high as 10.5%.
• Digital goods and services, as well as tangible personal property, are subject to sales tax in Washington.
• Local tax rates vary by city and county, with Seattle and many other cities reaching the maximum combined rate of 10.5%.
• For the most accurate and up-to-date information, visit the Washington State Department of Revenue.

State of Washington Sales Tax Calculator Example with Customers in Multiple Locations

An online retailer based in Oregon establishes economic nexus in Washington by exceeding $100,000 in annual sales or 200 transactions, requiring them to collect and remit sales tax for purchases made by Washington residents. The retailer makes sales to customers in multiple cities, each with different local tax rates.

Detail	Description
Business	Online retailer based in Oregon with economic nexus in Washington.
Customer Purchases	Customer A in Seattle $1,200 total, $800 taxable, $400 exempt (e.g., groceries or medications). Customer B in Spokane $900 total, $600 taxable, $300 exempt. Customer C in Tacoma $500 total, $400 taxable, $100 exempt.
Customer Locations	Seattle 10.5% total sales tax. Spokane 8.9% total sales tax. Tacoma 10.2% total sales tax.

Washington Sales Tax Calculations

Customer	Taxable Amount	Total Tax Rate	Total Tax Due
Customer A	$800	$800 × 10.5% = $84.00	$84.00
Customer B	$600	$600 × 8.9% = $53.40	$53.40
Customer C	$400	$400 × 10.2% = $40.80	$40.80

Total Sales Tax Due in Washington

$84.00 (Customer A) + $53.40 (Customer B) + $40.80 (Customer C) = $178.20

Key Considerations for Businesses

• Location Accuracy: Washington has a destination-based sales tax system, meaning sales tax is applied based on the customer's delivery location. Ensure accurate customer addresses for precise tax rates.
• Exemption Management: Groceries are generally exempt, but digital goods and many services are taxable in Washington. Maintain proper documentation for exemptions.
• Tax Reporting: Track taxable and exempt sales by city for accurate reporting and timely filing through the Washington State Department of Revenue’s My DOR portal.

Is there a Washington SaaS sales tax?

Yes, Washington imposes sales tax on Software as a Service (SaaS), as it is generally classified as taxable tangible personal property.

Category	Details	Examples
Taxable SaaS	SaaS products are subject to Washington’s 6.5% state sales tax, plus applicable local taxes, when provided electronically.	Cloud-based accounting software, CRM tools.
Non-Taxable SaaS	Custom software or SaaS solutions considered services may be exempt, depending on the structure of the transaction.	Custom-built software solutions.
Requirements for Businesses	SaaS providers with nexus in Washington must collect and remit sales tax for taxable transactions.	Out-of-state providers meeting nexus thresholds.

Additional Notes

• Washington’s tax code includes SaaS under “digital automated services,” making them taxable when delivered electronically.
• Businesses can streamline compliance by getting started with Kintsugi for sales tax automation, ensuring accurate tax calculations and filings.
• For further guidance, consult the Washington State Department of Revenue or a tax professional.

Is there sales tax on clothing in Washington?

Yes, Washington imposes sales tax on clothing, with no specific exemptions for general purchases:

Category	Details	Examples
Taxable Clothing	Most clothing and footwear are subject to Washington’s 6.5% state sales tax, plus applicable local sales taxes.	Shirts, pants, shoes, jackets.
No Sales Tax Holiday	Washington does not offer a sales tax holiday for clothing purchases.	N/A
No General Exemptions	There are no general exemptions for clothing purchases in Washington.	Formal wear, athletic gear, casual clothing.

FAQs

Does Washington have state tax?

Yes, Washington imposes a 6.5% statewide sales tax, with additional local taxes of up to 4%, resulting in combined rates as high as 10.5%.

What is the Washington state retail tax rate?

The statewide rate is 6.5%, with local taxes varying by location, creating combined rates up to 10.5%.

Sales Tax Nexus in Washington

Sales tax nexus in Washington establishes a business's obligation to collect and remit sales tax, triggered by physical presence, economic activity, or relationships with in-state entities.

Type of Nexus	Description	Threshold/Criteria
Physical Nexus	Created by having a physical presence in Washington, such as a location, employees, or inventory.	Office, warehouse, storefront, or employees operating in Washington.
Economic Nexus	Triggered by making substantial sales into Washington, even without a physical presence.	More than $100,000 in gross retail sales annually into Washington.
Affiliate Nexus	Created through relationships with in-state businesses that help facilitate sales.	A Washington-based affiliate promotes or sells products for the out-of-state retailer.
Marketplace Nexus	Applies to sales made through marketplace facilitators operating in Washington.	Facilitators must collect and remit sales tax on behalf of sellers.
Inventory Nexus	Triggered by storing inventory in Washington, even if through a third party (e.g., warehouses or fulfillment centers).	Any physical inventory located in Washington.
Employee or Agent Nexus	Having employees, independent contractors, or agents perform services in Washington.	Sales or service activities conducted by representatives in Washington.

Notes

• Washington uses both physical presence and economic presence to determine sales tax nexus.
• Businesses with nexus in Washington must register for a sales tax permit and collect sales tax on taxable sales.
• Marketplace facilitators are responsible for collecting and remitting sales tax for third-party sales made through their platforms.
• Washington operates a destination-based sales tax system, meaning the sales tax rate is based on the buyer’s location.

FAQs

What is the sales tax nexus in Washington?

Sales tax nexus in Washington is established through physical presence or economic nexus, triggered by exceeding $100,000 in annual sales to Washington customers.

Washington Sales Tax Exemptions in 2025

In 2025, Washington maintains its 6.5% state sales tax, with exemptions for groceries, prescription medications, and certain manufacturing machinery.

What is a Washington state tax-exempt certificate?

A Washington state tax-exempt certificate, also known as the Resale Certificate or Exemption Certificate, is a document that allows eligible buyers to make tax-exempt purchases in Washington. It certifies that the buyer qualifies for an exemption under Washington sales tax law.

• Purpose: Used for transactions exempt from sales tax, such as purchases by government agencies, nonprofit organizations, or for resale purposes.
• Usage: The buyer provides the certificate to the seller at the time of purchase to avoid paying sales tax.
• Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.

Valid Reasons for Exemption

Exemption Category	Description	Examples
Resale	Items purchased for resale.	Products bought by retailers for inventory.
Manufacturing	Machinery and equipment used directly in production.	Manufacturing tools, raw materials, and machinery.
Nonprofit Organizations	Tax-exempt entities making qualified purchases.	Purchases by charitable or educational organizations.
Government Agencies	Federal, state, or local government entities.	Supplies or equipment bought by government offices.
Agricultural Use	Items used exclusively in farming.	Fertilizers, seeds, and equipment.
Energy Conservation	Equipment used in qualifying renewable energy projects.	Solar panels or wind turbines.

Note: Washington requires sellers to verify the accuracy of exemption certificates and retain them for audit purposes.

What is exempt from sales tax in Washington?

Over 80% of Washington businesses benefit from a collection of sales tax exemptions to reduce costs and ensure compliance. This table highlights key Washington sales tax exemptions to support business operations:

Category	Exempt Items
Essential Goods	Prescription medications, medical devices, and certain mobility-enhancing equipment.
Nonprofit Organizations	Purchases by qualifying charitable, religious, and educational organizations.
Government Entities	Transactions made by federal, state, and local government agencies.
Agricultural Products	Seeds, fertilizers, livestock feed, and equipment used in agricultural production.
Manufacturing	Machinery and equipment used directly in manufacturing or research and development.
Resale	Items purchased for resale with proper resale certificates.
Educational Materials	Textbooks and educational supplies for schools and universities.
Occasional Sales	Casual or isolated sales by individuals not engaged in regular business activities.

Additional Notes

• Washington provides specific exemptions for grocery items, while prepared foods and beverages are taxable.
• Exemptions for manufacturing and agriculture often require submission of valid exemption certificates.
• Businesses may also qualify for certain high-technology R&D exemptions.

Washington Sales Tax Permits, Registration, and Filing in 2025

This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Washington state.

How do I get a Washington sales tax permit?

To obtain a sales tax permit in Washington, follow these steps:

• Register Online: Visit the Washington State Department of Revenue's My DOR portal to start your registration for a sales tax permit.
• Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.
• Pay the Registration Fee: Washington does not charge a fee for obtaining a sales tax permit.
• Receive Your Permit: Once approved, you'll receive a Washington State Unified Business Identifier (UBI), which allows you to collect and remit sales tax.
• Note: Washington requires businesses with physical or economic nexus to register for a sales tax permit before collecting sales tax.

How do I submit a Washington sales tax registration?

To register for Washington sales tax, follow these steps. Washington also offers customer support for registration through the Washington State Department of Revenue at (800) 647-7706.

Determine if You Need to Register

You must register for Washington sales tax if your business:

• Has a physical presence (nexus) in Washington (e.g., office, warehouse, employees).
• Meets economic nexus thresholds by making over $100,000 in cumulative gross receipts annually in Washington.

Gather Required Information

Before starting, ensure you have:

• Business Information: Legal name, DBA (if applicable), federal EIN or SSN.
• Address Details: Physical and mailing addresses.
• Business Type: LLC, sole proprietorship, corporation, etc.
• Sales Estimates: Estimated taxable sales in Washington.
• Bank Account Information: For filing and payment setup.

Register Online

• Visit the Washington State Department of Revenue website.
• Create an account or log in to the My DOR portal.
• Select Register a New Business and follow the prompts to complete your sales tax registration.

Submit Application

• Review the form for accuracy before submitting.
• Once approved, you will receive a Washington Unified Business Identifier (UBI) and a reseller permit, which allows you to collect and remit sales tax.

Begin Collecting and Filing Sales Tax

• Start collecting Washington sales tax on taxable transactions.
• File and remit collected sales tax through the My DOR portal based on your assigned filing frequency (monthly, quarterly, or annually).

Washington Sales Tax Filing

This section breaks down Washington state's sales tax requirements, including filing rules, taxable items, and permits.

What are the main Washington filing requirements?

Washington sales tax filing requirements depend on the size and frequency of taxable sales:

• Filing Frequency: Businesses must file monthly, quarterly, or annually based on their total sales tax liability.
• Due Date: Returns are due on the 25th of the month following the reporting period.
• Filing Method: Returns must be filed electronically through the Washington Department of Revenue's My DOR portal.
• Additional Requirements: Businesses must report all taxable and exempt sales and remit payment for collected taxes by the due date to avoid penalties and interest.

Filing Frequency Criteria

Filing Frequency	Criteria
Monthly	For businesses collecting $4,800 or more in sales tax annually.
Quarterly	For businesses collecting $1,050 to $4,799 in sales tax annually.
Annually	For businesses collecting less than $1,050 in sales tax annually.

Note: Washington uses a destination-based sales tax system, meaning sales tax rates are determined by the buyer's location, which can be easily verified using a tax rate lookup. Businesses must accurately report and remit state and local sales taxes, which can total up to 10.5%. Electronic filing is mandatory for most businesses.

What does Washington sales tax apply to?

Washington sales tax applies to the following categories, with certain exemptions such as for groceries, prescription medications, and some manufacturing machinery.

Category	Description	Examples
Tangible Personal Property	Most goods, unless exempt.	Furniture, electronics, clothing.
Taxable Services	Certain services are subject to sales tax.	Amusements, telecommunications, some repairs.
Digital Goods	Digital products transferred electronically.	Prewritten software, e-books, digital media.
Leases and Rentals	Rentals of equipment and property.	Equipment rentals, car rentals.
Prepared Foods	Meals and drinks sold by food service businesses.	Restaurant meals, takeout, catering.

Note: Washington imposes a 6.5% statewide sales tax, with local taxes that can bring the total rate up to 10.5%. Washington follows a destination-based sales tax system, requiring businesses to apply the rate of the buyer's location.

How to file sales tax in Washington

To file sales tax in Washington, follow these steps:

• Log in to My DOR: Access the Washington Department of Revenue's My DOR portal using your credentials.
• Complete the Sales Tax Return: Enter total taxable sales, exempt sales, and any applicable use tax or local sales taxes.
• Calculate Tax Due: My DOR automatically calculates the sales tax owed based on your entries and local tax rates.
• Submit Payment: Pay electronically through the portal or by other approved methods.
• Meet Deadlines: Returns are due by the 25th of the month following the reporting period (monthly, quarterly, or annually, depending on your assigned frequency).
• Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.

FAQs

What day is Washington sales tax due?

Washington sales tax is due on the 25th of the month following the reporting period for monthly or quarterly filers.

Does Washington have a sales tax holiday?

No, Washington does not currently offer a sales tax holiday.

Automate Your Washington Sales Tax with Kintsugi

Managing Washington sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Feature	Description
Accurate Tax Rate Calculations	Automatically apply the correct state and local sales tax rates based on your customer’s location.
Exemption Management	Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items.
Effortless Filing	Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments.
ERP and eCommerce Integration	Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management.

Let Kintsugi handle the complexities of Washington sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!