NO Corporate Income Tax
Regardless of the profitability of the company, or the personal wealth of the employees, the company will only be taxed on its gross receipts. In neighboring states, such as Oregon, Idaho and California, as the profitability of the company grows, so do the taxes a company pays.
NO Personal Income Tax
Washington is one of seven states that do not have personal income tax. There is also NO tax on intangible assets such as bank accounts, stocks, or bonds. Washington does not tax retirement income earned and received from another state. There is no current legislation to create an income tax.
Business and Occupation Tax
Persons that engage in business in Washington are subject to Business and Occupation Tax and/or public utility tax (B&O). The tax is based on gross receipts and the rates vary according to thirty-two classification categories ranging from 0.13% to 3.3%. The B&O is administered by the Department of Revenue. Visit the Department of Revenue’s site for more information about the Business and Occupation Tax and specific industry tax rates.
Sales and Use Tax
Washington State relies on consumer taxes rather than personal income taxes; primarily the retail sales tax. Sales tax does not apply to food products, prescription drugs, or professional and personal services. Manufacturers are exempt from sales tax on machinery and equipment used in their production or research operations, but consumers purchasing construction services and building materials are subject to sales tax. The combined state and local retail sales tax rates range from 8.1% to 8.7% in Spokane County. Find more information on Sales and Use Tax.
State Property Taxes
Washington state property taxes vary due to voter-approved special levies. The average property tax in Spokane County is approximately $13 per $1000 of the assessed value.
Retail Sales Tax
Businesses making retail sales of property and services in Washington collect sales tax from their customer. There are some exemptions. Learn more.
The State of Washington has put out an easy-to-understand video about the basics on how to plan for, prepare, and pay state business taxes and insurance premiums. This video provides a step-by-step process on how to properly file a tax report. Watch video.
For more information, chat with a Department of Revenue specialist.