Get Combined Excise Tax 2023-2024

The B&O tax is part of a business' operating overhead and is levied upon the person or company engaged in the business activity. It is not a tax imposed on the purchaser or customer, as is the case with retail sales tax.

Business and occupation tax overview ​Washington's B&O is an excise tax measured by the value of products, gross proceeds of sales, or gross income of a business with over 30 different classifications and associated tax rates ranging from 0.138 percent to 1.5 percent.

Washington's B&O tax is calculated on the gross income from activities. This means there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business.

Your business may qualify for deductions or exemptions from the B&O tax for: Care of children under eight years old and below the first grade. Care by a church that is exempt from property tax, for periods less than 24 hours. Funds received for health or social welfare services.

Generally, when a business provides professional or personal services (including being an agent to third parties) the income (including commissions) from the activity is reported under the Service and Other Activities B&O tax classification.

This return is used for reporting your business income, sales tax, and use tax.

The 10.25% sales tax rate in Seattle is collected and then distributed as follows: 6.5% goes to the state of Washington, 2.35% will go to the City of Seattle and King County, and 1.4% will go to the Regional Transit Authority. These 3 rates add up to the 10.25% total rate.

All businesses must file and pay their taxes electronically. (Revised Code of Washington 82.32. 080). Businesses unable to file and pay electronically may request a waiver.