Taxation and Regulatory Compliance

What Is the Sales Tax in Spokane Washington?

Understand Spokane, Washington's sales tax. Learn the current rate, what's taxable, and common exemptions for consumers.

Sales tax is a consumption tax applied to the purchase of goods and services. Consumers typically encounter this tax at the point of sale, where it is added to the listed price of taxable items. Understanding these taxes is important for budgeting and financial planning, as they can vary considerably by location and transaction type. This system ensures that a portion of retail spending contributes directly to public services and infrastructure within a given jurisdiction.

Spokane’s Sales Tax Rate

The combined sales tax rate for Spokane, Washington, is 9.0%. This rate is a combination of the statewide Washington sales tax and local sales taxes specific to Spokane. The state of Washington imposes a uniform sales tax rate of 6.5% across all regions. The remaining 2.5% constitutes the local sales tax portion applicable within Spokane city limits.

This combined 9.0% is what consumers pay on taxable goods and services purchased at the point of sale within Spokane. It is important to note that sales tax rates can differ significantly across various cities and counties throughout Washington State. For instance, while Spokane’s local component is 2.5%, other areas within Spokane County might have slightly different combined rates due to varying local district taxes.

What Sales Tax Applies To

In Washington State, sales tax generally applies to the retail sale of tangible personal property. This includes most physical goods purchased in stores or online, such as clothing, electronics, furniture, vehicles, and books. Beyond tangible goods, certain services are also subject to sales tax in Washington. These taxable services often include construction, repair, and installation services for both real and personal property.

Other services that typically incur sales tax include landscaping, certain recreational activities like fishing charters or sporting event tickets, and personal services such as tanning or tattooing. Digital products and software, including software as a service (SaaS), are also generally taxable when sold to consumers in Washington.

Common Sales Tax Exemptions

Washington State provides several common exemptions from sales tax, primarily benefiting consumers on essential goods. Most food products purchased for home consumption, often referred to as groceries, are exempt from sales tax. However, this exemption typically does not extend to prepared foods, soft drinks, or dietary supplements.

Prescription drugs dispensed for human use are also exempt from sales tax. Certain medical devices, particularly disposable or single-use devices used to deliver drugs to patients, are often exempt. While many professional services like legal or accounting services are not subject to sales tax, the state specifically taxes certain services.

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