Minimum Sales Rate Tax for 2024
| 6.50% | Column content | Column content | Column content | Column content | |
| 3.8% | Column content | Column content | Column content | Column content | |
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| Minimum combined sales tax rate value | 10.3% | Column content | Column content | Column content | Column content |
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| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Depends on the filing frequency | Column content | Column content | Column content | Column content |
The base state sales tax rate in Washington is 6.5%, but since the city-specific tax rate is 3.8% and the Pierce County tax rate is 0%, the minimum sales tax rate for Tacoma is 10.3%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Tacoma, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Tacoma
Tacoma imposes a business tax on companies operating within the city, which is separate from the sales tax. This business tax may include a gross receipts tax or a business and occupation (B&O) tax, both of which are designed to generate revenue for local services and infrastructure.
It’s important for business owners to be aware of these tax obligations, as compliance is crucial for maintaining good standing with the city. Additionally, unlike in some other cities, rentals of equipment and vehicles in Tacoma are also subject to sales tax. This means that businesses involved in rental services must account for this tax when pricing their offerings and ensure proper tax collection from customers.
Services
Generally not subject to sales tax.
Goods
Most items, including appliances, cars, furniture, sporting goods, and electronics, are taxable.
Clothing
Subject to sales tax.
Electronics
Taxable.
SaaS
Subject to sales tax.
Digital Products
Subject to sales tax.
Software
Pre-written software is taxable.
Freight/Shipping
Typically taxable if included in the sale of taxable goods.
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