Link Search Menu Expand Document

Sales Tax in Washington State

The tax system is an integral part of modern nation-states. It gives countries and states the ability to generate financing to run their affairs. Similarly, different types of taxes exist. Each has a specific use and a method of collection. The sales tax is one such form of taxation, which is collected from the sale of goods and services. Each state has its laws that determine the collection and rate of sales tax. As a result, Washington State has its regulations that govern this particular taxation. Like in all states, retailers are responsible for the collection of sales tax in Washington State.

Washingtonian Sales Tax

Like many states in the United States, tax collection serves as the main source of income in the State of Washington. The minimum sales tax rate stands at 6.5%. Each retailer is expected to collect and remit 6.5% of the cost of specific items from the buyer to the state government. However, each municipality within the state is allowed to collect sales tax at a different rate.

Taxable Items and Services

Most tangible items are subject to taxation in this state. When this money is collected by a retailer, they must remit it to the state Department of Revenue. The liability of collection and remittance of this tax sits with the buyer. However, businesses that resale items and have a valid resale permit are exempted from collecting this levy. Other entities that do not have to pay sales tax are nonprofit organizations and government agencies. In addition, digital goods are subject to sales tax laws. Likewise, the cost of services provided to clients must include sales tax. Such services include

  • Construction;
  • Decoration
  • Installation;
  • Cleaning services.

Local Sales Tax Rates

Just like the state has its sales tax rates, the municipalities within Washington State have their rates. The range of sales tax within local areas and cities ranges from 0% to 3.9%. As such, there are areas within the city where citizens only have to pay state sales tax. In addition, some citizens pay as high as 10.4% in sales levy. On average, the people in the state pay a sales tax of about 8.8%. In total, there are 105 tax jurisdictions in the state. Every year, each municipal can adjust its tax rate depending on its needs.

Filling Sales Tax in Washington

For a business to fill and remit sales tax, it must register with the Washington Department of Revenue. Once registered, a company must always collect and forward these taxes from buyers to the government. Failure to do so can lead to penalties. All the levies a business collects must be remitted before a particular date. The process of reporting the payment is done in two steps. Firstly, the company must submit sales information collected from buyers. Secondly, the money collected as tax must be remitted to the government account. The rate at which a business is required to file sales tax depends on its size and volume of sales.

Other useful articles:

Back to top

© , Sales Tax 24/7 — All Rights Reserved - Terms of Use - Privacy Policy