How Much Is Sales Tax In Washington

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Washington Sales Tax Calculator

Voters pass Washington County 0.25% sales tax increase

You can use our Washington Sales Tax Calculator to look up sales tax rates in Washington by address / zip code. The calculator will show you the total sales tax amount, as well as the county, city, and special district tax rates in the selected location.

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Washington has a 6.5% statewide sales tax rate,but also has 182 local tax jurisdictions that collect an average local sales tax of 2.373% on top of the state tax. This means that, depending on your location within Washington, the total tax you pay can be significantly higher than the 6.5% state sales tax.

For example, here is how much you would pay inclusive of sales tax on a $200.00 purchase in the cities with the highest and lowest sales taxes in Washington:

Which Sales Are Not Subject To The Motor Vehicle Sales/lease Tax

Note: Unless a specific exemption applies, these sales remain subject to the regular sales tax.

  • Retail car rentals that are subject to the rental car tax under RCW 82.08.020.
  • Amounts charged to the vehicle owner for post-sale/delivery equipment and installation.
  • Sales of maintenance agreements and warranties by dealers and other third parties.
  • Sales of trailers.
  • Amounts charged for repairs of motor vehicles.
  • Sales of motor vehicles that are not subject to sales tax .

How To Register For A Sales Tax Permit In Washington

by Tara Johnston | Dec 20, 2019

Quick Answer: This post offers information on how to register for a sales tax permit in Washington. Registration is best completed online via the Washington State Department of Revenue website. More detailed information is included below.

Do You Need to Get a Sales Tax Permit in Washington?

The first step in registering for a sales tax permit is determining if you even need one. In general, you need a sales tax permit in Washington if you have a physical presence or meet economic nexus requirements. For more detailed information on the necessity of getting a permit, you can learn more from our blog post Do You Need to Get a Sales Tax Permit in Washington?

If you are not sure where you should get sales tax permits, we can help determine that for you with our Sales Tax Starter Kit Service.

Once youre sure you need a sales tax permit in Washington, you can proceed with registering.

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Which Sales Are Subject To The Motor Vehicle Sales/lease Tax

Each retail sale, rental, or lease of a “motor vehicle” is subject to the additional tax. “Motor vehicle” means every vehicle that is self-propelled as described in RCW 46.04.320, but does not include farm tractors, farm vehicles, off-road vehicles, non-highway vehicles, and snowmobiles. Generally, this means that motor vehicles licensed for on-road use are subject to the additional tax.

The motor vehicle sales/lease tax applies to sales, rentals, and leases of motor vehicles including:

  • Passenger cars.

This additional tax also applies to charges for all extra features added to the vehicle prior to delivery to the buyer. For example, the charge for a tow hitch added to a vehicle prior to delivery is subject to the motor vehicle sales/lease tax.

Washington State Estate Tax And Inheritance Tax

Which state has the highest sales taxes? No, not Washington ...

For 2018, the exclusion amount is $2,193,000. If the deceaseds estate is valued at this amount or less, there is no estate tax due. If the estate is valued at more than the exclusion amount, the tax brackets range from 10 percent to 20 percent of the amount of the taxable estate.

For example, if a resident of Washington state dies with an estate of $1,500,000, there would be no estate tax due because the amount is under the exclusion. The Washington taxable estate is zero. If, however, the deceased left an estate of $3,500,000, the estate tax would be based on a taxable estate amount of $1,307,000 . The tax would be $100,000 plus 14 percent of the Washington taxable estate greater than $1,000,000. So, $100,000 plus 14 percent of $307,000, or a total estate tax of $142,980.

Washington state does not have an inheritance tax. The Washington tax on assets passed on at death is an estate tax only. An inheritance tax is paid by the heir, while an estate tax is paid by the estate of the person who died before the assets are distributed to the heirs. In Washington state, there is an estate tax only, so the taxes are paid before the beneficiaries get the assets.

Read Also: North Carolina Personal Property Tax

Is Food Taxed In Washington State

Washington law exempts most grocery type food from retail sales tax. However, the law does not exempt prepared food, soft drinks, or dietary supplements. Businesses that sell these foods must collect sales tax. In addition, all alcoholic items are subject to retail sales tax.

Washington State Sales Tax

When a resident makes a purchase in Washington state, they will be charged sales tax. The state sales tax rate is 6.5 percent. The local county or city can add an additional sales tax. In Seattle, for example, the total sales tax is 10.1 percent. The average combined state and local sales tax rate in Washington state is 9.18 percent.

Sales tax in Washington state is not charged on:

  • Sales to Indians or Indian tribes
  • Manufacturers machinery and equipment

Sales tax is charged on the sale of tangible personal property, and also on services such as repair, cleaning, installation, construction and so on. It is also charged on the sale of digital products such as downloaded or streaming movies or music. It is the responsibility of the seller to collect the sales tax from the buyer and remit it to the state.

Retailers who ship or deliver goods into Washington state are required to collect Washington state sales tax based on the location to which the item is delivered. Since the sales tax can vary from county to county, this so-called destination-based sales tax can even affect local businesses like furniture stores and pizza shops that might deliver outside the county they are located in.

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Washington Sales Tax On Car Purchases:

Vehicles purchases are some of the largest sales commonly made in Washington, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Washingtonâs sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals.

In addition to taxes, car purchases in Washington may be subject to other fees like registration, title, and plate fees. You can find these fees further down on the page.

Do I Need To Register My Business In Dc

Snohomish County proposes sales tax hike without a vote to fund affordable housing

There is no requirement to register your business in the District of Columbia, but doing so can give your business certain legal protections and make it easier to obtain contracts and licenses. Registering your business also makes it easier to open a business bank account and to apply for business loans. Moreover, how much does it cost to register a business in dc? It costs $220 to register a business in DC.

Also Check: Tax Implications Of Selling Stock

What About Use Tax

The motor vehicle sales/lease tax of three-tenths of one percent on motor vehicles also applies when use tax is due on a vehicle. Use tax is paid at the time a vehicle is registered with the Department of Licensing if sales tax was not paid at the time the vehicle was acquired by the current owner. This would happen if a vehicle was purchased from a private party or if it was purchased outside of Washington.

The motor vehicle sales/lease tax also applies when use tax is due on demonstration, executive, and service vehicles.

Wise Is The Cheaper Faster Way To Send Money Abroad

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Read Also: What Happens If I Don’t Pay My Taxes On Time

Collection Payment And Tax Returns

Sales taxes are collected by vendors in most states. Use taxes are self assessed by purchasers. Many states require individuals and businesses who regularly make sales to register with the state. All states imposing sales tax require that taxes collected be paid to the state at least quarterly. Most states have thresholds at which more frequent payment is required. Some states provide a discount to vendors upon payment of collected tax.

Sales taxes collected in some states are considered to be money owned by the state, and consider a vendor failing to remit the tax as in breach of its fiduciary duties. Sellers of taxable property must file tax returns with each jurisdiction in which they are required to collect sales tax. Most jurisdictions require that returns be filed monthly, though sellers with small amounts of tax due may be allowed to file less frequently.

Sales tax returns typically report all sales, taxable sales, sales by category of exemption, and the amount of tax due. Where multiple tax rates are imposed , these amounts are typically reported for each rate. Some states combine returns for state and local sales taxes, but many local jurisdictions require separate reporting. Some jurisdictions permit or require electronic filing of returns.

Purchasers of goods who have not paid sales tax in their own jurisdiction must file use tax returns to report taxable purchases. Many states permit such filing for individuals as part of individual income tax returns.

Washington Sales Tax Rates By City

washington state sales tax chart by county

The state sales tax rate in Washington is 6.500%. With local taxes, the total sales tax rate is between 7.000% and 10.500%.

Washington has recent rate changes .

Select the Washington city from the list of popular cities below to see its current sales tax rate.

Sales tax data for Washington was collected from here. Sale-Tax.com strives to have the most accurate tax percentages available but tax rates are subject to change at any time. Always consult your local government tax offices for the latest official city, county, and state tax rates. Help us make this site better by reporting errors.

Read Also: When Do People Get Tax Returns

Overall Washington Tax Picture

Washington is a mixed bag when it comes to taxes. To start, Washington has no state income tax, meaning that Social Security, retirement income, pensions and other income sources are not taxed. This makes it one of the friendlier states for retirees. If youre new to the Evergreen State, you can use our Washington paycheck calculator to see how that lack of state income tax may affect your take home pay.

The state does have very high sales taxes, however. The statewide sales tax rate is 6.5% and when county rates are included, its typically between 8% and 10%. Property taxes in Washington are relatively low by national standards. The average effective property tax rate is 1.06%.

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Federal Sales Tax Deduction

Washington State taxpayers may deduct sales tax in 2015 and beyond

In December of 2015, President Obama signed an omnibus tax and spending package that includes a permanent extension of the federal sales tax deduction for Washington residents. As a result, Washington State residents may deduct state and local general-sales tax on their federal income returns for tax year 2015 and succeeding tax years.

The deduction is available to taxpayers that itemize deductions, not those who take the standard deduction. The deduction is based on adjusted gross income and number of exemptions claimed. Taxpayers who keep all their receipts can deduct actual sales tax and use tax paid. For taxpayers who didn’t keep receipts, the IRS has an online Sales Tax Deduction Calculator to determine the amount of optional general sales tax to claim, or taxpayers can use the Optional State Sales Tax Tables.

Read Also: Take Home Pay After Tax

Motor Vehicle Lease/sales Tax

The sales/lease tax on motor vehicles applies to leases, rentals, and sales of vehicles, which currently includes:

  • Commercial trucks
  • Sport utility vehicles

The tax applies to charges for any additional features and extras included on the vehicle before it is delivered to the person who purchased it.

To report the motor vehicle lease/sales tax, the Department of Revenue’s tax returns have a separate section where you can include this information. The section is titled ‘Motor Vehicle Sales/Leases’.

Under RCW 82.14.450, there is an exemption from the public safety element of the retail sales tax, which applies to:

  • Motor vehicle retail sales
  • The first three years of lease payments on vehicles

To report any sales/leases which qualify, the Department of Licensing has created special area codes for the partial sales tax exemption. Motor vehicle leases which extend beyond three years don’t qualify for this partial exemption.

According to Hotwire, retail car rentals are not subject to the same taxes and are taxed at 5.9 percent of the selling price. This is regardless of whether or not the vehicle is licensed in Washington State.

Unless an exemption applies, these sales are subject to regular sales tax:

  • Warranties and maintenance agreements by dealers
  • Motor vehicle repairs
  • Charges to the vehicle owner for delivery equipment/installation
  • Motor vehicles that aren’t subject to sales tax

Washington State Use Tax

Washington state bill proposes ‘sales tax holiday’ for Sept. 2022

Use tax applies when sales tax hasn’t been paid is what the Washington State Department of Licensing tells us. So, when you purchase a vehicle from a private party, you are required to pay use tax when said vehicle is transferred to you.

Sales Tax Handbook states that if the vehicle’s purchase price is not in line with its true value, the value is calculated as close as possible to the selling price of similar vehicles. The total amount of collected use tax is determined based on the vehicle’s fair market value.

If you believe that a vehicle is worth less than the average fair market value and you purchased the vehicle for well below this amount, you can use an affidavit or a verified appraisal from the seller. By doing so, you can get the vehicle’s market value lowered.

If you are in the military and on active duty, you could be automatically exempt from paying any use tax when you purchase a vehicle.

Recommended Reading: Va State Tax Refund Status

Other Taxes And Fees On Washington Car Purchases

Washington vehicle buyers may encounter a number of additional fees and taxes, such as:

  • Registration fee: $50
  • Plate transfer fee: $10

Some dealerships also charge a documentation fee, which covers the costs of the dealership handling the documents associated with the purchase of the vehicle. The average documentation fee in Washington State is $150, and state law caps the fee at this rate. However, the cost can vary depending on the dealership you go to.

Understanding Washington State vehicle sales tax can often take time, especially since sales tax on vehicles can vary drastically depending on where you live. However, with just a little patience and understanding, it will get easier to familiarize yourself with how vehicle sales tax in Washington State works.

Spokane Washington Sales Tax Rate

spokane Tax jurisdiction breakdown for 2021

What does this sales tax rate breakdown mean?

Sales tax rates are determined by exact street address. The jurisdiction-specific rates shown add up to your minimum combined sales tax rate. The total rate for your specific address could be more.

Need the exact sales tax rate for your address?

Spokane, Washington sales tax rate details

The minimum combined 2021 sales tax rate for Spokane, Washington is . This is the total of state, county and city sales tax rates. The Washington sales tax rate is currently %. The County sales tax rate is %. The Spokane sales tax rate is %.

South Dakota v. Wayfair, Inc.

The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. To review the rules in Washington, visit our state-by-state guide.

COVID-19

The outbreak of COVID-19 may have impacted sales tax filing due dates in Spokane. Please consult your local tax authority for specific details. For more information, visit our ongoing coverage of the virus and its impact on sales tax compliance.

Automating sales tax compliance can help your business keep compliant with changing sales tax laws in Washington and beyond. AvaTax delivers real-time sales tax rates and uses advanced technology to map rates to exact address locations, based on the latest jurisdiction requirements.

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Seattle Washington Sales Tax Rate

seattle Tax jurisdiction breakdown for 2022

What does this sales tax rate breakdown mean?

Sales tax rates are determined by exact street address. The jurisdiction-specific rates shown add up to your minimum combined sales tax rate. The total rate for your specific address could be more.

Need the exact sales tax rate for your address?

What is the sales tax rate in Seattle, Washington?

The minimum combined 2022 sales tax rate for Seattle, Washington is . This is the total of state, county and city sales tax rates. The Washington sales tax rate is currently %. The County sales tax rate is %. The Seattle sales tax rate is %.

Did South Dakota v. Wayfair, Inc affect Washington?

The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. To review the rules in Washington, visit our state-by-state guide.

Did COVID-19 impact sales tax filing due dates in Seattle?

The outbreak of COVID-19 may have impacted sales tax filing due dates in Seattle. Please consult your local tax authority for specific details. For more information, visit our ongoing coverage of the virus and its impact on sales tax compliance.

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