Washington Tax Law

Income Taxes

• The state of Washington does not impose an individual income tax or a corporate income tax.
  
  

Business & Occupation Tax

• The business & occupation tax is a state tax on the gross income of a business. This differs from some state taxes, which are based on the net income of a business. The tax rate varies based on the type of business.
  
  

Sales Tax

• Washington's main source of tax dollars is its retail sales tax. Business owners are responsible for collecting sales taxes and handing them over to the Department of Revenue. Retail sales tax rates vary by county.
  
  

Use Tax

• The use tax is a tax on goods and services for which the sales tax has not been paid. This includes things purchased from another state and things purchased from private individuals who aren't authorized to collect sales tax. The state use tax rate is .065 percent.
  
  

Property Tax

• Local governments in Washington are given the authority to levy property taxes.