Washington

Washington is one of only seven states that do not have an income tax. The state does impose a sales and use tax, as well as several excise taxes and various business taxes.

The general sales and use tax rate for Washington is 6.5%. Some cities and counties also collect an additional sales and use tax.

Businesses report their business income on one of several returns, depending on certain attributes of their business. A small business may report using the Sales Tax Remittance, while a business with higher income or sales taxes may use the Retailing and Other Activities Report. The Business and Other Activities Report would be used by a business in certain Business and Occupation (B&O) tax classifications that do not collect retail sales tax. If a business does not meet the qualifications to use one of the other returns, it would file the Combined Excise Tax Return.

Some of the additional taxes imposed by the state of Washington are for lodging, rental car, public utility, and fish taxes.

To download tax forms or find general tax information on the State of Washington, visit the Department of Revenue website at www.dor.wa.gov.

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