Is Washington Excise Tax the Same as B&O Tax?

B&O Tax Overview
Washington’s B&O tax is an excise tax measured by the value of products, gross proceeds of sales, or gross income of a business with over 30 different classifications and associated tax rates ranging from 0.138 percent to 1.5 percent.
Excise Taxes in Washington
An excise tax is a tax directly levied on certain goods by a state or federal government. Washington imposes excise taxes on real estate transactions, fuel, cigarettes, and alcoholic beverages.

Real Estate Excise Tax (REET)
Washington state levies a real estate excise tax (REET) on all property sales. The tax rate is 1.28% of the property’s full selling price.
Who Pays Real Estate Excise Taxes
The seller typically pays the real estate excise tax, but the buyer is liable if the tax is not paid, and unpaid tax can become a lien on the property.

Capital Gains Tax
The capital gains tax rate in Washington state is 7.0% for 2021, applying to capital assets sold after being held for more than one year.
Income Tax Overview
Washington does not have a personal or corporate income tax. The primary tax on business activities is the B&O tax, an excise tax based on gross receipts.

Washington State Tax Rates
The state sales tax rate in Washington is currently 6.5%, with a total tax rate reaching up to 10.4% depending on local municipalities.
Tax Rate Estimates
You can estimate your Washington State and Federal Tax by selecting the tax year, filing status, Gross Income, and Gross Expenses to compare salaries and estimate tax commitments.

Sales Tax Details
The Washington sales tax rate for 2023 ranges between 6.5% and 10.4%, comprising a base rate of 6.5% plus mandatory local rates.
District Income Tax and Property Taxes
Washington’s tax system includes a 6.50% sales tax rate, district income tax rates of 4.00% to 10.75%, and property taxes on real estate with specific rules and exemptions.