Washington state tax officials are taking great strides in making Washington attractive to new and existing business owners. No new taxes are on the horizon for business owners; by keeping the Washington state tax system equitable, they keep the regulatory burden manageable. State government also offers incentives to bring new companies to the state and help existing companies expand.
Before starting a new business, research the Washington state and local taxes that will affect your business and gather the Washington tax forms you will need to get started. The online business service center makes it painless for a business to do business in Washington by offering a consolidated portal to Washington state and local tax resources. The portal offers one-stop shopping for Washington tax regulations that will have the greatest impact on your business:
1. Business and occupation local Washington taxes
2. Washington state sales tax and use tax
3. Property tax in Washington State
Action Steps
The best contacts and resources to help you get it done
Go to the source for Washington state tax information
The Washington State Department of Revenue website is a user-friendly gateway to Washington state tax information for businesses and individuals, and for Washington state tax filing and payment.
I recommend: Visit the
Department of Revenue site, including its
business tax pages.
Study the alternate form of Washington state tax
Washington State does not impose a personal or corporate income tax. However, business owners are subject to business and occupation tax. This Washington state tax is based on the gross income of your business. Your Washington tax rate depends on the classification of your business. Business owners are required to report and pay amounts due on the Washington tax forms for excise tax.
I recommend: Consult the Washington Department of Revenue's list of
business classifications to determine your Washington tax rate and Washington state tax filing deadlines.
Complete your personal property tax affidavit as required
Washington public tax records show that property taxes are levied on both the state and local levels in Washington. Both real and personal property utilized for business purposes are subject to the property tax unless otherwise exempted. You need to file a personal property tax affidavit with your county assessor's office by April 30 each year. The affidavit is used to value your personal property for taxes due the next year. Washington public tax records are available through the county treasurer's office.
I recommend: Use the
map of county officials to locate your county assessor's office for more information regarding property tax valuation. Click on your county and the link will take you to the website for that county.
Know the difference between Washington state sales tax and use tax
Any business engaged in retail sales in Washington needs to collect Washington state sales tax from their customer at the time of sale. Use tax is imposed on the use of goods or services in Washington when sales tax has not been collected. Goods used in Washington are subject to the sales tax or the use tax, but never both. In this way, the use tax compensates for the loss of tax revenue when sales tax is not paid.
I recommend: To discover how Washington tax rates for sales and use tax compare to the rest of the country, see the
tax data comparison.
Tips & Tactics
Helpful advice for making the most of this Guide
- The online portal for the Washington Department of Revenue delivers a business tax guide and links to Washington tax resources for tax incentive programs and tax credits that will ease your tax liability.
The official source of Washington State and Local Tax Resources is
the Washington State and Local Tax Resources page at Business.com
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