Is SaaS taxable in Washington?

by TaxJar September 18, 2025

Sales tax can be complex when you sell a SaaS product. For one thing, some states consider SaaS taxable while others don’t. Further, some states dig even deeper, and pass laws that say things like SaaS is taxable if your customer is other businesses (B2B) but it’s not taxable if you are selling business-to-consumer (B2C).

This post will go over what you need to know about SaaS taxability if you are selling SaaS products to customers in Washington State.

Should your business charge sales tax on SaaS in Washington?

SaaS is generally always taxable in Washington. Services that primarily involve human effort are subject to sales tax if delivered digitally. These types of software services are generally taxable:

Advertising services (digital only), including online referrals, search engine marketing, digital ad placement, campaign evaluation, graphic design, and layout. It excludes newspapers, printing, broadcasting, billboards, and live events
Information technology services like IT training, technical support, help desks, data processing, data entry, and in-person hardware/software training
Custom website development
Temporary staffing services
Security-related services, including investigations, security monitoring, and armored car services
Custom and customized prewritten software

How can I learn more about SaaS taxability in Washington?

Washington State has provided quite a bit of information on SaaS taxability on their website. Check out their subject pages on:

You can also read Washington’s laws on the taxation of SaaS here.

How to automate sales tax when selling a SaaS product

Sales tax on SaaS is complicated, and that’s exactly why we built TaxJar.

With TaxJar’s Sales Tax API, all you need to do is let us know that you are selling a SaaS product by entering the product tax code that corresponds to your particular product. From there, we ensure that you collect the right amount of sales tax from every customer in every state where you are required to collect sales tax. If SaaS is non-taxable in a state, then your customer will not be charged.

Not only does TaxJar make sure you collect the right amount of sales tax, we automatically help you stay compliant in states where your business has economic sales tax nexus. On your behalf, we’ll track when your revenue or your number of transactions in a state exceeds that state’s threshold for economic nexus. No more guessing or digging into your books and each state’s individual nexus laws to determine when it’s time to start collecting sales tax.

Get started with TaxJar today by starting a free trial.