Sales Tax Rules
Washington imposes a state sales tax rate of 6.5%, with a maximum combined rate (state plus local) of 10.6% when local taxes are added. Economic nexus is triggered at $100,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit Washington sales tax. SaaS and digital software products are taxable in Washington. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS and remote access software are explicitly taxable as retail sales.
Grocery Details
Basic groceries are exempt; prepared food and soft drinks are taxable.
What is the sales tax rate in Washington?
Washington's state sales tax rate is 6.5%. When local taxes are added, the maximum combined rate can reach 10.6%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Washington?
Washington requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit Washington sales tax.
Is SaaS taxable in Washington?
Yes. Washington considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Washington customers must collect sales tax. SaaS and remote access software are explicitly taxable as retail sales.
Are groceries taxed in Washington?
Groceries are generally exempt from sales tax in Washington. Basic groceries are exempt; prepared food and soft drinks are taxable.
Are digital goods taxable in Washington?
Yes. Washington taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Washington customers should collect sales tax.
Are clothing items exempt from sales tax in Washington?
Clothing is subject to sales tax in Washington at the standard state rate.
How often do I need to file sales tax in Washington?
Washington requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Washington Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.