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Key takeaways
- Washington sales tax rates: The statewide rate is 6.5%, and local taxes push combined rates as high as about 10.6%. Washington also levies a separate B&O gross-receipts tax, reported on the same return.
- Economic nexus: Remote sellers must collect once cumulative gross sales into Washington exceed $100,000 in the current or prior year. There is no transaction-count threshold.
- Filing & penalties: Monthly returns are due on the 25th of the following month. Late payment penalties step up from 9% to 19% to 29% of the tax due.
Washington sales tax key facts (2026)
| Item | Washington |
|---|---|
| Statewide rate | 6.5% |
| Combined rate range | Up to ~10.6% |
| Economic nexus threshold | $100,000 (no transaction count) |
| Sourcing | Destination-based |
Collect and file Washington sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Yes.
| Item | Washington |
|---|---|
| Groceries | Exempt (prepared food/candy/soda taxable) |
| Also note | Separate B&O gross-receipts tax |
| Return due date | 25th of the month after the period |
| Governing agency | Washington Department of Revenue |
What is the sales tax rate in Washington?
Washington’s statewide sales and use tax rate is 6.5%. Local city, county, and special-district taxes vary widely and push combined rates as high as about 10.6%. Look up a local rate on the Washington Department of Revenue site.
Note: Washington also levies a separate Business & Occupation (B&O) tax on gross receipts. It’s not a sales tax, but most sellers report it on the same return — so factor it in alongside sales tax.
Do you have sales tax nexus in Washington?
Nexus is the connection that obligates your business to collect and remit Washington sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Washington, such as:
- Soliciting sales through employees or representatives in Washington
- Installing or assembling goods in the state
- Maintaining inventory in Washington
- Renting or leasing tangible personal property in the state
- Providing services, or constructing/installing/repairing property, in Washington
- Making regular deliveries using company-owned vehicles
Economic nexus
Out-of-state sellers establish economic nexus once they exceed $100,000 in cumulative gross sales into Washington in the current or prior year. There is no transaction-count threshold.
What is taxable in Washington?
Tangible products are generally taxable, with exceptions like certain groceries, prescription medicine, and newspapers. Most services aren’t taxable, but construction-related and certain other services are. Digital products are taxable.
Is SaaS taxable in Washington?
Yes. Washington taxes SaaS — all software is subject to tax regardless of delivery method, and SaaS falls under the state’s digital products/services rules.
How is food taxed in Washington?
Food and food ingredients (groceries) are generally exempt. Prepared foods, candy, soft drinks, and bottled water are taxable at the standard rate.
How to register for a Washington sales tax permit
Register with the Washington Department of Revenue before collecting. Taxually can register for you, or you can apply online through the My DOR portal or via the Business Licensing Service. A first-time business license fee of $19 applies.
Have ready: the purpose of your application, ownership structure, business name, owner/spouse details, business location and activities, and bank information. You’ll receive a business license and Unified Business Identifier (UBI) number.
How to collect sales tax in Washington
Washington is destination-based — collect tax based on where the product is delivered (the buyer’s shipping address for online sales).
Filing and paying Washington sales tax
Filing frequency is assigned by income: monthly (due the 25th of the following month), quarterly (due the end of the month after the quarter), or annual (due January 31). Remember you also report B&O tax on the same return.
File and pay online through the My DOR portal. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Late payments carry a graduated penalty:
- 9% of the tax due if not paid by the due date (through the end of the following month).
- 19% if not paid by the end of the second month.
- 29% if not paid by the end of the third month.
- Interest also accrues at a rate set annually by the Department.
Frequently asked questions
What is the sales tax rate in Washington in 2026?
The state rate is 6.5%, with local taxes bringing combined rates as high as about 10.6%.
What is the economic nexus threshold for Washington?
$100,000 in cumulative gross sales into Washington in the current or prior year. There is no transaction-count threshold.
Is SaaS taxable in Washington?
Yes. Washington taxes SaaS and all software regardless of delivery method.
Does Washington have a B&O tax?
Yes. In addition to sales tax, Washington levies a Business & Occupation tax on gross receipts, reported on the same return.
When are Washington sales tax returns due?
Monthly returns are due the 25th of the following month; quarterly and annual returns have their own deadlines.
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