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Businesses outside of Washington

If your business earns income attributable to Washington that would be taxable under an apportionable B&O classification and meets one of the following thresholds within a calendar year, you have economic nexus with Washington:

  • More than $53,000 of payroll in Washington
  • More than $53,000 of property in Washington
  • More than $267,000 of gross income in Washington
  • At least 25 percent of your total property, payroll, or income in Washington

If you have economic nexus, you must register your business with the Washington State Department of Revenue and report and pay Washington B&O tax.

These thresholds are effective for 2013. Please use these figures until revised. See Excise Tax Advisory (ETA) 3195.2015 for prior years.

How do I register my business in Washington State?

Register your business online where you will find step-by-step instructions, information and resources, or call 1-800-647-7706.

important Businesses making retail or wholesale sales continue to be governed under the physical presence nexus standards outlined in WAC 458-20-193 for such sales. If physical presence nexus standards apply then the business and occupation (B&O) tax under the retailing and wholesaling classification and the obligation to collect and remit retail sales tax on sales to Washington buyers will apply.

Note that a business may have physical presence nexus, but not economic nexus and visa versa.

How do I apportion and/or reconcile my income?

General information about economic nexus