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Rental car tax

What is the rental car tax?

It is a tax paid by the consumer on the rental of a passenger car for a period of less than 30 days.

How do I pay the tax?

The rental company reports the tax to the Department of Revenue on a Rental Car Tax Addendum.

What rate do I pay?

The rental car tax is in addition to the retail sales tax. The rates are:

  Rate
State rental rate .059
County rental rate .01 (Franklin, Pierce, King, Kittitas, and Spokane Counties)
.02 (King County Stadium Tax) See note below
Regional Transit Authority (RTA) .008

 

What are the funds used for?

State rental rate Deposited into the multimodal transportation account per RCW 47.66.070.
County car rental rate After state administrative costs, local receipts are distributed to counties for construction or operating public sports stadiums or youth or amateur sports activities or facilities.
King County rental rate After state administrative costs, receipts are distributed to King County for bonds or related design and preconstruction costs for a professional baseball stadium in Seattle.

Note: The King County Stadium Tax expired October 1, 2011. Effective tax rates for car rentals in King County (both RTA and Non-RTA) will therefore be reduced by 2 percent. Businesses must continue to collect the additional 2 percent tax on car rentals through September 30, 2011.
Regional Transit Authority Devoted to financing a high capacity, rapid transit system.