Taxable Services in Washington
Taxable services in Washington include real property maintenance services like landscaping, data processing services, information services, digital automated services, digital goods, cleaning, repairing, altering or improving real or personal property. Also taxable are recreation services like day trips for sight-seeing, service charges for tickets to professional sporting events and amusement services like golf or bowling. Personal services like tattooing or escort services are taxed.
- Drop shipments are generally subject to state sales taxes.
- Sales of goods shipped directly outside Washington are not subject to sales tax.
- Determining taxability of digital goods and software is complex.
- Washington taxes data processing services, canned and custom software delivered physically or downloaded.
- It also taxes software as a service and customized canned software.
- Clothing, footwear and tangible goods are taxable unless specifically exempted.
- Vehicle sales have different sales tax treatment.
What is Taxed in Washington DC
- District of Columbia doesn’t collect sales tax on most groceries, non-prescription drugs and prescription drugs.
- Use tax applies if goods purchased out of state are used in DC.
- Generally, sales of food, drink, and alcohol for on-premises consumption are subject to a 10% sales tax in DC.
- Goods subject to sales tax in DC include furniture, appliances, and vehicles.
- DC has a single district-wide 6% general sales tax rate applying to goods and some services.
- Sales tax typically applies to shipping costs if the item shipped is taxable in DC.
- Prepared food sold for immediate consumption has a 10% tax in DC.
What is Taxed in DC
- DC’s restaurant tax is 10% for meals and drinks, one of the highest rates nationally.
- Alcohol purchased at DC bars and restaurants has a 10% tax. It’s cheaper to buy at stores but prices are marked up. Federal and DC alcohol taxes both apply.