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Does Washington charge sales tax on services?

The majority of US states require merchants to charge sales tax on tangible personal property (TPP), also known as physical goods. Many states also require merchants to collect and remit  sales and use tax on digital goods and SaaS. 

In addition, as the economy moves from manufacturing (and physical goods) to a serviced-based model, more states understand that services represent a viable stream of tax revenue. As a result, states may now require service-focused merchants to charge sales tax.

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: 

• Construction services 
• Installing, cleaning, repairing or otherwise altering or improving personal property of consumers (including interior cleaning services)
• Landscaping and landscape maintenance (including horticulture services)
• Providing tangible personal property with an operator (including leases or rentals of tangible personal property, bailments)
• Retail recreation services (including amusement park admissions, bowling, fishing charters, day trips for sight-seeing and service charges on tickets to professional sporting events)
• Personal services (including personal training at athletic and fitness facilities, sunless tanning, tattooing, Turkish and steam baths in addition to hot tubs, and dating and escort services)
• Car wash (including vending machines for car washes, vacuums, air and water) or detailing cars, trucks, campers, boats, etc.
• Catering and personal chefs (including items purchased or rented by caterers, and services performed by other types of food service contractors, sales of meals and food service management, and wholesale sales of prepared meals)
• Extended warranties and maintenance agreements (can also be known as service contract)
• Vehicle towing
• Automobile parking fees (including hourly metered parking; although city/county metered parking and monthly parking is not taxable, if you use monthly parking and have no designated space, that is taxable)
• Competitive telephone, telecommunications and ancillary services
• Digital products (including digital automated services, remote access software and digital goods)
• Escrow services and abstract and title insurance
• Credit bureau services, including credit worthiness and tenant screening services
• Alarm monitoring services
• Domain name registration services
• Restaurants, cocktail bars, taverns and similar businesses

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 have more details.

How to stay compliant with sales tax when you sell services

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FAQ: Navigating Washington’s sales tax on services

Explore more common questions about who needs to charge sales tax on services in Washington. If you’re unclear about your sales tax obligations, reach out to a tax professional for guidance and clarity to ensure your business remains compliant

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