Retail sales tax

Retail sales tax is Washington’s principal tax source. Businesses making retail sales in Washington collect sales tax from their customers. The business then submits the retail sales tax when they file their excise tax return.

Retail sales tax is due on the sale of certain goods and retail services, as described below. 

Tangible personal property

Property that can be seen, weighed, measured, felt, or touched, is subject to sales tax when sold to the end user.

Digital products

Many digital products are subject to sales tax when sold to the end user. If a digital product is subject to sales tax when sold in a tangible form, it will generally be subject to sales tax in its digital form also. Examples include music files and audiobooks. For additional guidance please visit digital products.

Retail services

Taxable retail services include installing, cleaning, decorating, beautifying, repairing, or otherwise altering tangible personal property for consumers. They also include:

• Certain recreational services.
• Repairing or improving real property for consumers. 
• Construction.
• Landscaping and lawn maintenance.

See our Services subject to sales tax for additional examples of retail services. 

Starting October 1, 2025: 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.

Common retail sales tax exemptions and deductions

• Food
• Federal Government Sales
• Interstate and Foreign Sales
• Manufacturers’ Machinery and Equipment Exemption
• Tribal Sales 

For a complete list of exemptions, see our list of retail sales and use tax exemptions.

Sales tax rate

The sales tax is comprised of two parts: a state portion and a local portion. The state tax rate is 6.5%. The local tax rate varies by city and/or county. Retailers must collect sales tax at the rate based on where the customer receives the goods or services. 

For more information, see our Determine the location of my sale webpage.

The seller is responsible for collecting and submitting the correct sales tax rate. Sales tax collected are considered trust funds and must be remitted to the Department of Revenue.

Here is some helpful information

• Use tax is paid by the consumer when retail sales tax was not collected by the seller/service provider.
• Businesses that make a purchase for resale must provide a reseller permit to the seller. If not, the seller must charge the buyer retail sales tax on the total purchase.
• Businesses must pay retail sales tax on purchases for their own use (such as supplies, equipment, or retail services) that will not be resold in the regular course of business.

Marketplace fairness

Certain marketplace facilitators and remote sellers are required to collect and submit retail sales tax on sales in Washington. For more information, see our Marketplace Fairness webpage.

Streamlined sales tax

The Streamlined Sales and Use Tax Agreement (SSUTA) is a cooperative effort of multiple states, local governments and the business community. SSUTA pro¬vides for a simpler and more uniform sales and use tax structure for businesses selling into multiple states. 

For more information, see our Streamlined sales tax webpage.