Does Washington charge sales tax on services?

by TaxJar July 11, 2023

The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.

Here’s what merchants need to know about which services are taxable in the state of Washington, which has a state sales tax rate of 6.5%.

Does Washington charge sales tax on services?

Services are generally taxable in Washington state, including the following

Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Washington sales tax, TaxJar’s guide to sales tax in Washington and the Washington Department of Revenue has more details.

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