Washington has no state income tax, but charges sales tax on most purchases

Washington State does not tax wages, salaries, or investment income. Instead, it funds state services through sales tax — a tax collected at the point of purchase on goods and some services. The state sales tax rate is 6.5%, but the total tax you pay at checkout is usually higher because counties and cities add their own local sales taxes on top. Your total rate depends on where you live and shop.

This structure means Washington residents pay tax when they spend money, not when they earn it. A person earning $100,000 pays no state income tax at all. But that same person pays sales tax on groceries, clothing, restaurant meals, and most other purchases. Understanding what is and is not taxed helps you predict what you will pay and why your receipt shows a different total than the price tag.

Key Takeaways

  • Washington's state sales tax is 6.5%, but your actual rate is higher because your city and county add local taxes, typically bringing the total to 8% to 10.5%.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax, but prepared food and candy are taxed.
  • Services like haircuts, car repairs, and legal information are generally not subject to sales tax, but installation labor tied to a taxable product often is.
  • The tax is collected by the seller at checkout and sent to the Department of Revenue, so you do not file a separate form as a consumer.

State rate plus local taxes: why your total varies by location

The 6.5% state rate is a floor, not a ceiling. Every county in Washington adds a county sales tax, and most cities add a city sales tax on top of that. A purchase in Seattle, for example, is taxed at 10.25% — the 6.5% state rate plus 3.6% in King County and city taxes combined. The same item bought in Spokane is taxed at 8.9% because Spokane County and the city of Spokane have lower local rates.

These local rates change over time and sometimes vary within a county depending on which city you are in. A city may raise its rate to fund schools or infrastructure, or a county may adjust its rate after a voter measure passes. If you shop near a city border, you might pay different totals on either side of the line. The Department of Revenue publishes a complete rate table by location, updated regularly, so you can look up the exact rate for your address or a specific city.

What is taxed: goods, prepared food, and some services

Most physical goods are taxed — clothing, electronics, furniture, tools, and household items all carry sales tax. Prepared food is taxed, which means a restaurant meal or deli sandwich is subject to tax, but groceries you cook at home are not. This distinction matters: a rotisserie chicken from a grocery store deli counter is prepared food and is taxed, but a raw chicken from the butcher section is not.

Services are usually not taxed in Washington, with important exceptions. A haircut, car repair, or plumbing visit is not subject to sales tax. But if you buy a service bundled with a taxable product — such as installation labor when you purchase flooring or a new appliance — the installation portion may be taxed. Some services tied to real estate, like landscaping or construction labor, have their own tax rules. When in doubt, ask the seller whether the total price includes tax or if tax will be added.

What is exempt: groceries, medicine, and medical devices

Groceries intended for home consumption are exempt from sales tax. This includes bread, milk, vegetables, meat, eggs, and canned goods. The exemption covers food you prepare yourself, not food you eat prepared. Candy and soft drinks are taxed because they are not considered essential groceries, even though they are sold in grocery stores.

Prescription medications are exempt from sales tax, as are certain medical devices and equipment — diabetic testing supplies, hearing aids, and prosthetics are common examples. Over-the-counter medications like pain relievers or cold medicine are taxed because they are not prescription items. If you have questions about whether a specific medical item is exempt, the seller can usually tell you, or you can contact the Department of Revenue.

How the tax is collected and where the money goes

The seller collects sales tax at the register and holds it until the end of the month, then sends it to the Department of Revenue along with a return showing total sales and tax collected. You do not file a separate form or pay sales tax directly — the business handles it. This is why sales tax does not appear on your income tax return and why you do not receive a bill for it.

The revenue is split between the state and the local jurisdictions that imposed it. The state portion funds education, transportation, and social services. Local portions fund schools, police, fire departments, and city infrastructure. Because Washington has no income tax, sales tax is the largest single source of state revenue, which is why changes to the tax rate or exemptions often become political issues.

Sales tax on online and out-of-state purchases

If you order something online from a seller with a physical presence in Washington — a warehouse, store, or office — the seller must collect and send Washington sales tax, even if the item ships from out of state. If you order from a seller with no Washington presence, the seller is not required to collect tax, but Washington residents are technically supposed to pay use tax on those purchases themselves. Use tax is the same rate as sales tax and covers goods bought outside the state for use inside it.

In practice, most consumers do not pay use tax on individual purchases. It is meant to prevent people from avoiding sales tax by shopping out of state. If you run a business or make large purchases, you may need to track and report use tax on your tax return. The Department of Revenue has worksheets and guidance for calculating use tax if you want to comply, but enforcement on individual consumer purchases is minimal.

Frequently Asked Questions

Is sales tax included in the price tag or added at checkout?

Sales tax is added at checkout, not included in the price tag. The tag shows the pre-tax price. This is why your receipt total is higher than the displayed price. You can estimate the final cost by multiplying the price by your local tax rate — for example, a $100 item in Seattle with a 10.25% rate costs about $110.25 at checkout.

Do I pay sales tax on used items or secondhand purchases?

Sales tax applies to used goods sold by a business, such as a used car lot or consignment shop. Private sales between individuals are generally not taxed. If you sell your used furniture to a friend, no sales tax is due. But if you sell it to a used furniture store and they resell it, the store collects tax on the sale price.

What about sales tax on services like haircuts or car repairs?

Most services are not subject to sales tax in Washington. A haircut, oil change, or dental cleaning is not taxed. However, if the service includes a taxable product — such as a haircut plus a taxable hair product you take home — the product portion may be taxed separately. Ask your service provider if you are unsure.

Can I get a refund of sales tax I already paid?

No. Sales tax is final once you pay it at checkout. You cannot request a refund from the seller or the state. If you return an item and receive a refund, the sales tax is refunded as part of that refund, but you cannot recover tax on items you keep.

How do I know the exact sales tax rate for my city?

The Department of Revenue publishes a complete sales tax rate table on its website, searchable by city and county. Rates change periodically, so checking the official table is more reliable than relying on memory. You can also ask a local business or call your city or county tax office.