Out of state businesses reporting thresholds and nexus

Updated April 2020

Starting Jan. 1, 2020, a business must register to report B&O tax and collect/submit applicable sales tax, if the business meets any of the following thresholds in the current or prior year:

  • Has physical presence nexus in Washington.
  • Has more than $100,000 in combined gross receipts sourced or attributed to Washington.
  • Is organized or commercially domiciled in Washington.

These thresholds will apply to all Washington income, including retailing, wholesaling, service and other activities, and other apportionable activities.

How to register

To register, file a Business License Application. This application will register your business with the Department of Revenue and other state agencies. You will be issued a Unified Business Identifier (UBI)/Account ID when the application is processed. See our new business information after you have registered.

Many Washington cities and counties have licensing requirements and taxes on business activities. The Business Licensing Service offers more information on licensing requirements for many cities.

The department issues reseller permits to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale in Washington without paying retail sales tax. For more information, see our Reseller permit page.

You may determine whether an out of state business needs to register with the Washington’s Secretary of State’s office by visiting their website.

Nexus for past periods

Washington’s nexus criteria have changed over the years. For an overview of the changes, see our summary chart of nexus and registration criteria.


July - December

Change: Election and use tax notice and reporting eliminated​

March 14 - June

Change: 200 transaction threshold and click-through nexus eliminated​

January - March 13


October - December

Change: Wayfair​

January - September

Change: Election and use tax notice and reporting​


July - December

January - June


January - December


September - December

Change: Economic nexus for wholesaling & click-through nexus​

January - August

2014 - 2011

January - December


June - December

Change: Economic nexus for service and apportionable activities​

January - May

2009 and prior

January - December

Change: Physical presence only​



What is physical presence nexus?
Remote sellers
Marketplace Fairness
Voluntary disclosure

Interstate and Foreign Sales (nexus)
RCW 82.04.067
WAC 458-20-193
WAC 458-20-194

RCW 82.32.070
WAC 458-20-254

Additional resources
Construction guide
Small Business Guidance (Business.wa.gov)
Streamlined sales tax
Streamlined Sales Tax Registration System

Employment Security
Unemployment Insurance
Status Unit

Labor and Industries
Industrial Insurance & Contractors Bonding
Employer Services

Contractors Bonding

Business Licensing