Sales tax now applies to some services

Starting October 1: 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.

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Information technology services

Starting Oct. 1, 2025, Information technology (IT) services are subject to Washington retail sales tax. If you sell these services in Washington, you must collect and submit sales tax.

Any services that support or assist information technology infrastructure are taxable as an IT Service. These services may include, but are not limited to: providing network assessments, planning, design, migration services, network security services, system upgrades, and other network maintenance services to a client’s information technology infrastructure.

What’s included

IT Services include, but are not limited to, the following types of activities:

  • Support activities such as telephone consulting, help desk services, and remote training related to network hardware or software.
  • Services that provide network diagnostic, analysis, advisory support, quality assurance testing, localization services, network information logistics, and maintenance support services on new or existing network infrastructure.
  • Onboarding and offboarding services (e.g., setting up users with laptops and accounts).
  • Managed IT services, including infrastructure network configuration, analysis, and implementation.
  • Consulting or project management services, including planning efforts, analysis, engineering, testing, or deployment.
  • Project management and technical program manager services that manage engineers and consultants who are providing IT Services.
  • Migrating services and support, including the transfer, relocation of services from one environment to another, and associated project management services.
  • Consulting and support services in connection with digital products, including digital automated services.
  • Services that troubleshoot hardware and software issues and that provide information technology solutions.
  • Network security management and implementation of network security strategies.

What’s NOT included

IT Services do not include:

  • Web hosting, domain name registration, and payment processing services.
  • Custom website development services.
  • Sales of digital automated services, including software as a service (separately classified as a retail sale per RCW 82.04.050(8)).
  • Sales of remote access software (separately classified as a retail sale per ESSB 5814 Sec. 101(6)(b)).
  • Sales of custom software and customization of computer software (separately classified as a retail sale per ESSB 5814 Sec. 101(6)).
  • Cryptocurrency mining activities (does not include network system support or operation services).
  • Telecommunications services and ancillary services (classified as a retail sale under RCW 82.04.050).

For detailed scenarios and examples, review our Information Technology Services Interim Guidance.