Recreational vessel tax

What is the recreational vessel tax?

It is a 0.5% tax on each retail sale of a recreational vessel in this state. This tax is in addition to retail sales tax.

What is a recreational vessel?

For purposes of this tax, a recreational vessel is a vessel that is subject to the watercraft excise tax.

How do I calculate the tax?

The taxable amount is the selling price, plus trade-in property of like kind.

Example
On July 1, 2026, a vessel dealer lists a vessel for $100,000. The customer has a trade-in valued at $25,000 making the selling price $75,000. The recreational vessel tax is calculated on $100,000 ($75,000 selling price + $25,000 trade-in).

How do I pay the tax?

Sellers collect the tax and remit it to the department on their combined excise tax return under the Recreational Vessels classification.

If the tax was not collected by the seller at the time of purchase, it must be paid when the vessel is registered with the Department of Licensing. This occurs when the vessel is purchased from a private party or purchased outside of Washington.

What are the funds used for?

The funds are deposited into the multimodal transportation account to fund transportation improvements.