Beginning October 1, 2025, Washington businesses will begin collecting new retail sales taxes under Engrossed Substitute SB 5814, passed during the 2025 legislative session. The law expands the definition of retail sales to include a range of professional services such as advertising, live presentations, information technology services, custom website development, and others.
The Washington Department of Revenue (DOR) is preparing to issue interim guidance to help businesses understand how to comply with the new requirements. According to DOR, these guidance statements will be published in September and cover areas including advertising services, custom software, and temporary staffing. Businesses are encouraged to review this information carefully to ensure proper collection and reporting.
State leaders have said the changes are intended to keep up with rising costs and to maintain government services. Some lawmakers and business groups, however, have expressed concerns about how the expanded taxes could affect consumers and business operations.
The Department of Revenue is continuing to provide updates and resources as the October 1 effective date approaches. For more details and the latest information, visit the Washington Department of Revenue.
