New Sales Tax Requirements Effective October 1, 2025
As of October 1, 2025, Washington State has expanded the list of services that must now charge and collect retail sales tax, under state law ESSB 5814. If your business provides certain services, you may be required to start adding sales tax to invoices and reporting this tax to the Department of Revenue.
Services Now Subject to Sales Tax Include:
- Advertising and marketing services.
- Live presentations — including in-person or online classes, workshops, or seminars delivered in real time.
- Website and software development.
- IT support and training.
- Temporary staffing.
- Security and investigation services.
- Sales of custom software and customization of prewritten software.
These changes may apply whether you provide services in-person or online.
What Business Owners Should Do
- Review whether your services are affected: https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax
- Learn the basics of sales tax: dor.wa.gov/SalesTaxIntro
- Check your local sales tax rates: dor.wa.gov/SalesTaxRates
- Start adding sales tax to your invoices where applicable.
- Inform your customers that sales tax now applies to certain services: dor.wa.gov/TaxedServices
Need help?
The Washington State Department of Revenue offers resources and guidance:
- Phone: 360-705-6705
- Email: DORRulings@dor.wa.gov
- Web resources, webinars, and service-specific guidance: dor.wa.gov/5814
Stay compliant and make sure your business is ready for the new rules!
