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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Registration requirements

Most people conducting business activities in Washington State are subject to this state’s tax registration and reporting requirements. You are considered a business when you engage in any activity, including hobbies, for gain, benefit, or advantage (regardless of profit or loss).

You must register with the Department of Revenue if any of the following apply:

  • Your business is required to collect retail sales tax.
  • Your gross income is $12,000 per year or more.
  • Your business is required to pay any other taxes or fees to the Department of Revenue.


Washington’s major taxes

Washington State does not have a corporate or personal income tax. However, Washington businesses generally are subject to the following taxes:

  • Business and occupation (B&O)
  • Retail sales
  • Use
  • Personal property