What Is the Sales Tax in Washington State? Washington State Sales Tax Overview

The Washington state sales tax rate is 6.5%. The average total sales tax after local taxes is 8.89%. Groceries and prescription drugs are exempt. Counties and cities can charge up to an extra 3.1%. The total possible sales tax is 9.6%. Washington has 726 special sales tax jurisdictions. Washington has lower sales tax than 90.4% of states.

Tax Rates and Additional Charges

The state tax system has a range of tax rates and fees:

  • Sales tax rate: 6.50%
  • A district income tax of 4% to 10.75%
  • An average property tax rate is 0.56%

Vehicles rented for under 30 days have a 5.9% rental surcharge and a 1% county rental rate. Regional Transit Authority areas add 0.8%. With all taxes, rentals can reach 9.3%.

Business Obligations and Permits

If your company sells physical products or services, you must collect and pay sales tax. Use the state website to get your business license and permits. Download the paper application. Send it with the $19 non-refundable fee.

The sales tax rate in Welcome is 8.6%. This includes state, county, and city taxes. The Supreme Court’s South Dakota v. Wayfair decision affects many nexus laws.

The state vehicle sales tax rate is 6.5%. There is also a 0.3% lease/vehicle tax. Total state vehicle tax is 6.8%.

Retailing B&O tax rate is 0.471% of gross receipts. Retail sales tax must also be collected, unless exempted. Tax exemptions save money for those entitled to them.

The 10.25% sales tax rate in Seattle is distributed as follows: 6.5% to the state, 2.35% to Seattle and King County, and 1.4% to the Regional Transit Authority.

Washington state does not have a personal or corporate income tax. The median property tax bill for a $300,000 home is about $2,874 per year.

Sales Tax Permits and Calculators

To get a sales tax permit, use the state business license website. You can also print and mail the application with fees. The state requires a $19 non-refundable fee per registered business.

You can use a simple Washington sales tax calculator to determine the sales tax owed by entering the applicable sales tax rate and the purchase price.

Since January 1, 2018, any business making over $100,000 in gross retail sales to Washington customers must collect and remit sales tax.

Customers pay sales tax when they make a purchase. Businesses then report and submit the collected sales tax to the state. The Seattle sales tax rate is 10.25%.

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