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Businesses in Washington

If your business earns income from an apportionable B&O classification in another state or country and meets one of the following thresholds within a calendar year, you are eligible to apportion your income attributable to that state or country away from Washington.

  • Pay business activities tax in the other state or country
  • Have more than $53,000 of payroll in the other state or country
  • Have more than $53,000 of property in the other state or country
  • Have more than $267,000 of gross income in the other state or country
  • Have at least 25 percent of your total property, payroll, or income in the other state

If you are eligible to apportion your income, you may reduce the amount of Washington tax you owe.

These thresholds are effective for 2013. Please use these figures until revised. See WAC 458-20-19405 for prior years.

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.

General information about economic nexus

How do I apportion?