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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)
Manufacturing (general) 0.484%
Manufacturing (aerospace) 0.2904%
Wholesaling 0.484%
Retailing 0.471%
Services 1.8%

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.

Local Taxes

Kitsap Local Taxes

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