Washington Sales and Use Tax

The Washington state sales tax rate is currently 6.5%.

In Washington, each county, city and special district can add sales taxes on top of the state rate.

Sales tax rates are destination-based  meaning the sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.

• Finance charges are exempt from sales tax, when stated separately.
• Clothing is taxed at the same rate as the general sales tax.
• Washington Sales tax holidays are not planned for this state.

Does sales tax apply to delivery charges?

It depends. Sales tax applies when the seller adds delivery charges on products that are subject to sales tax. Delivery charges by a seller are part of the selling price whether they are billed separately, itemized, or the seller is also the carrier. If the seller is responsible for the cost of delivery, they may not deduct or exclude the delivery charges.

Does sales tax apply to delivery charges when the items sold are not subject to retail sales tax?

No. If the sale is exempt from retail sales tax, then the selling price including the delivery charge is not subject to retail sales tax.

Does sales tax apply to delivery charges when the items are sold at wholesale?

No. If the items are sold at wholesale, then the delivery charge is not subject to retail sales tax. However, the charges would be included in the gross income that is subject to B&O tax under the Wholesaling classification.

Does sales tax apply to delivery charges when the sale includes taxable and nontaxable goods?

Yes. If the delivery charges are included in the selling price, then retail sales tax will only be applied to the percentage of the delivery charges on the taxable goods.

To determine what percentage of the delivery charge is taxable, the seller may use one of the following calculations:

• A percentage based on the total sales price of the taxable goods, compared to the total sales price of all the goods in the shipment.
• A percentage based on the total weight of the taxable goods, compared to the total weight of all goods in the shipment.

To see a full breakout of Washington state sales tax rates by state, county, city and special district, use our easy Sales Tax Online Lookup Solution. After entering a ZIP code, you can enter a retail price to calculate the sales tax totals.

See all the Zip2Tax solutions available for Washington sales taxes here.

Follow this link to the Washington Department of Revenuefor more information.