Washington (WA)

While the state of Washington doesn't have any individual or corporate income tax, most Washington businesses are subject to three major state taxes: (1) retail sales tax, (2) use tax, and (3) business and occupation (B&O) tax.

The state B&O tax is a gross receipts tax measured on the value of products, gross proceeds of sales, or gross income of your business. The B&O tax is levied on the person or company engaged in the business activity. It is not a tax imposed on the purchaser or consumer, as is the case with both sales and use taxes. Almost all businesses located or doing business in Washington are subject to the B&O tax, including corporations, partnerships, sole proprietors, and nonprofit corporations.

Our STATE AND LOCAL TAX SPECIALISTS blogs feature insights and commentary by experienced sales/use and B&O tax professionals. Our Washington State blogger is Rachel A. Le Mieux, CPA, CMI of Peterson Sullivan LLP, located in Seattle, WA. (Please see Rachel's bio page for additional details).

Comments or questions may also be submitted to the featured state and local tax specialist by viewing any of the linked posts (below) and using the on-page “Comment” feature (or other posted contact options), subject to disclaimer at bottom of page. Additional contact options are also available on the blogger's associated Firm Profile.

• It's "Use" Tax Time in Washington: Don't Ignore the Reminder Notice!