Washington State takes an atypical approach to taxation. Businesses in Washington will pay:
- No corporate income tax
- No personal income tax
- No unitary tax (VAT)
- No inventory tax
- No tax on interest, dividends or capital gains
Business and Occupation Tax (B&O)
In place of a corporate income tax, Washington levies a B&O tax on the gross receipts of business activity occurring in the State. The primary rate classifications are:
|Classification||Rate (applied to receipts)|
Complete information on the B&O tax and additional rate categories can be found through the Department of Revenue.
Complete information on the Sales and Use Tax can be found through the Department of Revenue.