Top 10 Sales Tax Basics Every Washington Business Should Know
What is the Washington sales tax rate?
The Washington state general sales tax rate is 6.5%. Cities and / or municipalities can apply their own rate which can add up to 3.9% to the state rate.
What is Washington Sales Tax?
Sales tax in Washington is a tax on the sale of tangible personal property and the sale of certain services.
Are all sales and services taxable?
No
How can I find out what is taxable and what is not?
The following link can help you determine what is and what is non-taxable in Washington. Click here.
Who pays the sales tax?
Consumers pay sales tax. Merchants do not pay sales tax out of their own pockets. It is commonly referred to as a passing fee.
What am I responsible for?
You need to collect sales tax, keep it safe, and submit it to the state on time and in full.
When do I have to pay sales tax in Washington?
Washington sales tax is due on the 25th of the month following the reporting period. The filing frequency is determined by the estimated annual income of your business. Click here for more detailed information.
How do I know how much sales tax to charge?
The state sales tax rate in Washington is 6.5%. Washington cities and / or municipalities may charge their own rate which can add up to 3.9% of the state sales tax rate. Find more information here. The final and definitive answer is always the sales tax rate posted on the website of the Department of State Taxation. Rates posted on the web are often out of date and incorrect. It is always the merchant’s responsibility to collect the correct sales tax.
Who gets the sales tax money?
In Washington, all sales taxes are paid directly to the state.
How do I manage tax-free sales?
In Washington, nonprofit organizations generally pay taxes like any other business. They must pay commercial and residence taxes on gross income from normal business activities and sales tax on all retail goods and services they purchase as consumers, such as supplies, housing, equipment and construction services. However, there are limited exemptions for some types of non-profit organizations and activities. Find more information here.
What happens if i forget to pay or spend the money and i can’t pay?
Washington has severe penalties for non-payment of taxes. You can Find the late payment penalties here.. If sales tax is not paid, states will seize the company’s or owner’s assets and auction them off to pay off the debt. In extreme cases, the owners will be prosecuted and sent to prison. Even if the business goes bankrupt, the sales tax is a personal responsibility that will follow the owner until it is paid.
Sales and use of Washington TAX AID:
Washington Department of Revenue
(877) 345-3353
