2025 Quarter 3: Washington State Sales Tax Rate Changes

Posted on by AlisaNaCPA

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

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

FAQ – 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

Disclaimer

The content on this website is for general informational purposes only and does not constitute professional legal, financial, or tax advice.

While we strive for accuracy, we make no warranty regarding the completeness or reliability of the information provided. Tax laws are complex and subject to change, and the content may not apply to your individual circumstances.

Your use of this site and reliance on its information is solely at your own risk. We are not liable for any loss or damage resulting from its use. We strongly recommend consulting a qualified professional for advice specific to your situation.