Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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Taxicabs (may also apply to limousines)

Updated November 2016


This tax guide helps owners and independent drivers of taxicabs (and limousines) understand how Washington’s retail sales tax, business and occupation (B&O) tax, and public utility tax apply to their activities. This guide covers the taxability of income from:

  • Rentals of taxicabs to independent drivers,
  • Fares,
  • Surcharges for fuel, additional passengers and baggage; and
  • Tips.