Why Is Tacoma Sales Tax So High?

Overview of Sales Tax in Tacoma, Washington

• Tax Rates
  • Tacoma’s sales tax rate increased to 10.3% in 2023.
  • This comprises 6.5% Washington state sales tax and a 3.8% Tacoma city tax.

Washington Sales Tax Comparison

• Highest Sales Tax Rates
  • Tacoma, Washington has the highest combined state and local sales tax rate at 10.3%.
  • In contrast, Portland, Oregon, and Anchorage, Alaska, have no state or local sales taxes.

Understanding Sales Tax in Washington

• General Facts
  • Most states implement sales tax for revenue generation, but five states have no sales tax.
  • Washington’s sales tax ranges from 6.5% to 10.4% in 2023, including local rates.

Sales Tax Variation Across Counties

• Spokane County
  • Collects a maximum 1.6% local sales tax.
  • Lower sales tax than 61.1% of Washington’s cities and counties.
  • Exceptions on certain purchases like groceries.

Tacoma Sales Tax Details

• Calculation and Exemptions
  • Tacoma’s sales tax includes a 6.5% state tax and a 3.8% city tax.
  • Exemptions for groceries under certain amounts, footwear, and specific items.

Cost of Living in Tacoma

• Median Home Cost and Living Expenses
  • Median home cost in Tacoma is $370,000.
  • Sales tax rate is 10.2% with no state income tax.
  • Living costs higher than the national average due to housing, groceries, transportation, and healthcare expenses.