Washington Sales Tax Guide & Nexus Calculator (2026)

Washington State has a 6.5% state rate and taxes SaaS and digital goods broadly — it is one of the high-priority states for digital product sellers. Washington has no state income tax and relies heavily on its sales tax. It is also known for active enforcement of digital goods taxability and has the Business and Occupation (B&O) tax layered on top of sales tax.

Quick Reference

Criterion	Detail
State Rate	6.5%
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Taxable
Typical Filing Frequency	Monthly
SST Member	No
Registration Portal	dor.wa.gov

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Washington’s economic nexus threshold is $100,000 in gross sales into Washington in the current or prior 12-month period. Once exceeded, registration and collection are required.

Washington enacted its economic nexus rule effective October 1, 2018. Marketplace-facilitated sales count toward the threshold. There is no transaction count alternative threshold.

Tax Rate and Product Taxability

Washington’s state rate is 6.5%. Local jurisdictions add taxes:

• State: 6.5%
• City/county: typically 0.5%–3.6%
• Combined in Seattle (King County): up to 10.5% in some areas
• Combined in Spokane: approximately 8.9%
• Combined in Tacoma: approximately 10.4%

Washington uses destination-based sourcing for remote sellers. Washington rates vary significantly by ZIP code — use a rate API for accurate collection.

Product Categories

Taxable: Tangible personal property, digital goods (including SaaS), most retail goods, many services.

Exempt: Prescription drugs, most groceries, qualifying manufacturing inputs and farm equipment.

Digital Goods and SaaS

Washington taxes SaaS and digital goods comprehensively. Washington’s Department of Revenue has been one of the most active states in pursuing digital goods taxability and has issued extensive guidance:

• SaaS — taxable; Washington treats the right to use software as a taxable retail sale
• Downloaded software — taxable
• Digital content (music, ebooks, streaming video and audio) — taxable
• Online subscriptions for digital services — taxable
• Cloud computing / hosted services — taxable where Washington customers access software or services

Washington explicitly includes “digital automated services” and “digital goods” in its taxable categories by statute. This is one of the most comprehensive and well-articulated digital goods taxability frameworks in the US.

Business and Occupation (B&O) Tax

Washington also imposes a Business and Occupation (B&O) tax on gross receipts from Washington business activity. This is separate from sales tax:

• B&O rates vary by business classification: 0.471% for retailing; 1.5% for services; 0.484% for manufacturing
• The B&O applies to Washington gross receipts regardless of nexus threshold
• Economic nexus for B&O: $100,000 in Washington receipts OR 25 or more transactions in Washington in the current or prior year

Remote sellers who only cross the sales tax nexus threshold must also evaluate whether they owe B&O tax. For sellers with $100,000+ in Washington revenue, both taxes likely apply simultaneously.

Registration

Washington is not an SST member. Register directly with the Department of Revenue.

1. Go to the Washington DOR: dor.wa.gov
2. Access My DOR and register for a Business License
3. Include both Retail Sales Tax and B&O Tax in your registration
4. Provide EIN and business details
5. You will receive a Washington Unified Business Identifier (UBI) number

Washington charges a $90 Business License fee at initial registration.

Foreign Sellers

Washington accepts foreign business registrations. A US EIN is required.

Filing Frequency and Deadlines

Annual Tax Liability	Filing Frequency
Less than $1,200	Annual
$1,200–$12,000	Quarterly
More than $12,000	Monthly

Monthly due dates: Returns are due by the 25th of the following month (Washington uses the 25th, not the 20th).

Returns are filed through My DOR.

Compliance Notes

B&O tax in addition to sales tax: Washington’s B&O tax applies to gross receipts from Washington customers and is a separate obligation from sales tax. Register for and remit both.

$90 business license fee: Washington’s initial registration fee is notable — budget for this when setting up Washington compliance.

25th deadline: Washington uses the 25th of the following month, not the 20th.

Active digital goods enforcement: Washington DOR actively enforces digital goods and SaaS taxability. If you sell digital products into Washington and are unregistered, risk of audit is higher than in many states.

High Seattle rates: Seattle-area (King County) combined rates reach 10.5% in some ZIP codes — among the highest in any US city.

Not SST: Washington is not an SST member.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Amazon FBA and Physical Nexus
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist