Business and occupation tax credit increase for small businesses

Intended audience: Small businesses.

Beginning with filing periods that start on or after January 1, 2023, the business and occupation (B&O) tax credit for small businesses increases.

What changed?

For businesses that report 50% or more of their income under Service and Other Activities, Gambling Contests of Chance, For Profit Hospitals, and/or Scientific R&D, the maximum credit increases to $160 per month.

For all other B&O tax classifications, the maximum credit increases to $55 per month.

What do I need to do?

Nothing. Our system will automatically calculate your small business B&O tax credit when you file electronically.

More information

RCW 82.04.4451

Questions

Please visit our credits page or call 360-705-6705.