The Washington Research Council recently reported that Washington State businesses deliver nearly half of the state and local tax revenues, bearing much of the state’s tax burden. Washington business taxes are the 9th highest per employee.
Sales tax was the largest source of tax revenue from Washington businesses in FY 2020, with businesses paying $6.4 billion. This accounted for 27.2% of the state and local business tax revenue, while nationally, other states’ sales tax accounted for 21.5% on average.
Property tax was the second largest tax burden for Washington businesses. In total, $6.0 billion was paid by businesses in the state. This figure accounted for 25.5% of total business tax revenue, compared to 39.2% in other states on average.
Washington businesses paid $4.5 billion in B&O taxes in FY 2020, which accounted for 19.1% of state and local taxes paid by businesses. In other states, corporate and personal income taxes combined for 14.5% on average.
Beyond the three most burdensome taxes, Washington businesses paid $3.8 billion in excise taxes (16.2% compared to 12.5% nationally on average), including public utilities and insurance. Washington businesses also paid $1.1 billion in unemployment insurance taxes (4.7% compared to 4.2% nationally) and $1.7 billion in licenses and other taxes (7.2% compared to 8.2% nationally).
Read the entire Washington Research Council report