Mercer Island Sales Tax Guide 2025 (Washington)
This 2025 guide to Mercer Island sales tax breaks down important sales tax rates, exemptions, tax changes, and filing deadlines for Washington businesses selling in Mercer Island or out-of-state businesses selling to customers in Mercer Island.
For more general info on Washington sales tax, take a look at our 2025 Washington Sales Tax Guide.
Mercer Island Sales Tax Rate (Washington)
In 2025, Mercer Island, Washington, imposes a total sales tax rate of 10.2%, comprising state, county, city, and special district taxes. This rate is consistent across the city, with no additional special taxing districts affecting the total sales tax rate.
For every $100 spent on Mercer Island, the City receives $0.85.
| Tax Component | Rate |
|---|---|
| Washington State Tax | 6.5% |
| King County Tax | 1.15% |
| Sound Transit Tax | 1.4% |
| Mercer Island City Tax | 0.85% |
| King County Voter-Approved Tax (shared with City) | 0.1% |
| Total Sales Tax Rate | 10.2% |
For the most accurate and up-to-date information, consider using Kintsugi's sales tax automation platform and integrations or consult the Washington Department of Revenue's official website.
To learn more about Washington sales tax on clothing, take a look at Kintsugi's easy guide: Does Washington Have Sales Tax on Clothes: 2025 Guide for Businesses.
Mercer Island WA Sales Tax Calculator
A retailer in Mercer Island, Washington, sells an item priced at $500. The total sales tax rate is 10.2%, comprising state, county, city, and special district taxes. A customer purchasing a $500 item in Mercer Island would pay $51.00 in sales tax, bringing the final total price to $551.00.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| Washington State Tax | 6.5% | $500 × 6.5% | $32.50 |
| King County Tax | 1.15% | $500 × 1.15% | $5.75 |
| Sound Transit Tax | 1.4% | $500 × 1.4% | $7.00 |
| Mercer Island City Tax | 0.85% | $500 × 0.85% | $4.25 |
| King County Voter-Approved Tax | 0.1% | $500 × 0.1% | $0.50 |
| Total Combined Tax | 10.2% | $32.50 + $5.75 + $7.00 + $4.25 + $0.50 | $51.00 |
| Final Total Price | $500 + $51.00 | $551.00 |
FAQs
What is the retail sales tax in Mercer Island, WA?
The sales tax rate in Mercer Island, WA, is 10.2%.
How do you get a sales tax permit in Washington?
Apply through the Washington Department of Revenue by completing a Business License Application online or by mail.
When do I need to complete a sales tax registration in Washington?
Register before making taxable sales if you have a physical presence or economic nexus exceeding Washington’s threshold in applicable zip codes, in accordance with the law.
What is the sales tax nexus threshold in Washington?
$100,000 in gross retail sales or 200 transactions in Washington annually.
Is Washington part of the Streamlined Sales Tax (SST) program?
Yes, Washington is a member of the SST program, simplifying sales tax compliance for businesses.
What is considered "tangible personal property” in Washington?
Physical goods like electronics, furniture, clothing, and certain digital products. Some services may also be taxable.
When do I need to file sales tax returns in Washington?
Filing frequency depends on sales volume—monthly, quarterly, or annually—determined by the Washington Department of Revenue.
To learn more about how to automate Washington sales tax exemptions, take a look at Kintsugi's easy guide: Washington State Sales Tax Exemption: 2025 Business Guide.
Mercer Island Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Mercer Island?
Sales tax collection in Mercer Island is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Mercer Island.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Washington.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Mercer Island?
In Mercer Island, Washington, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Grocery Food, Machinery, Raw Materials, Newspapers, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Mercer Island
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://dor.wa.gov/taxes-rates/sales-use-tax-rates.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://dor.wa.gov/taxes-rates/sales-use-tax-rates by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Mercer Island often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Mercer Island?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in Washington
Looking for sales tax rates and compliance details for other cities in Washington? Check out our comprehensive table of sales tax information for cities across the state in the table below
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