Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Washington State (WA), sales tax is imposed on the sale of most goods and some services. The state sets a base sales tax rate, and local jurisdictions can add their own taxes on top of the state rate, leading to varying total sales tax rates across different areas within the state. As of the knowledge cutoff in 2023, the base state sales tax rate in Washington is 6.5%. However, when combined with local sales taxes, the total rate can be significantly higher, depending on the specific location of the sale. The sales tax is collected by the seller at the point of sale and remitted to the Washington State Department of Revenue. Certain items may be exempt from sales tax, such as some groceries, prescription drugs, and certain services. Businesses selling goods or services subject to sales tax must register with the state and collect and remit the appropriate tax. Washington does not have a state income tax, so sales tax is a significant source of revenue for state and local governments.