# 2025 Quarter 3: Washington State Sales Tax Rate Changes

> Dear Clients, We want to bring your attention to two important updates from the Washington State Department of Revenue that may affect your business operations later this year. New Services Subject to Sales Tax – Effective October 1, 2025 Under Engrossed Substitute Senate Bill \(ESSB\) 5814, Washington State is expanding the definition of “retail sales.” \[…\]

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**Dear Clients**,

We want to bring your attention to two important updates from the Washington State Department of Revenue that may affect your business operations later this year.

**New Services Subject to Sales Tax – Effective October 1, 2025**

Under **Engrossed Substitute Senate Bill (ESSB) 5814**, Washington State is expanding the definition of “retail sales.”

Starting **October 1, 2025**, the following services will be subject to **retail sales tax**:

- Information technology services
- Custom website development
- Investigation, security, and armored car services
- Temporary staffing
- Advertising services
- Live presentations
- Custom software and software customization
- Certain digital automated services (DAS)

**Additional Guidance**

The Department of Revenue will release more details in the coming months.

[https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax](https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax)

For now, you can review the **Frequently Asked Questions** on DOR’s website here:

[FAQ – ESSB 5814](https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax/frequently-asked-questions-about-essb-5814)

If you provide or purchase any of these services, we recommend preparing now for the upcoming changes in how these transactions will be taxed.

[Quarter Two Updates](https://alisanacpa.com/the-quarter-2-2025-washington-state-sales-tax-rate-changes/)