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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.
Why am I being charged sales tax now?
Starting October 1, 2025, state law (ESSB 5814) requires sales tax to be collected on certain services that were not previously taxed. This means you may now see sales tax added to your bill when purchasing services such as advertising, IT support, custom website development, live presentations, security or investigative services, temporary staffing, or custom software.
What this means for you
Vendors are required by law to collect and send the sales tax to the Washington State Department of Revenue. Just like when you buy goods in a store, the vendor collects the sales tax on behalf of the state.
Who to talk to if you have questions
Because each business is responsible for applying sales tax to its own services, your vendor is the best first contact if you have questions about why sales tax was added to your bill. They can explain how the tax applies to the specific service you purchased.
If you still have questions, you can also visit Services newly subject to retail sales tax for more information.
