# Month-end close: sales tax in Washington Washington's state sales tax is 6.5%, local tax follows where the customer receives the goods, and late penalties climb from 9% to 29%. This is part of the [sales tax checklist](/month-end-close-checklist/sales-tax). Washington sales tax is administered by the Washington Department of Revenue. **Rate.** 6.5% state sales tax plus a local rate that varies by city and county. Retailers collect the rate where the customer receives the goods or services. **Filing.** By estimated annual tax liability: $1,050 or less is annual, $1,051 to $4,800 quarterly, and $4,801 or more monthly. A business license is needed at gross income of $12,000 a year or more, or when it sells something that needs sales tax collected. **Due.** Monthly returns on the 25th of the following month. Quarterly returns at the end of the month after the quarter, such as April 30 for January to March. Annual returns on April 15. **The trap.** A late return costs 9% from the day after the due date, 19% from about a month later, and 29% from about two months later. The department lists the exact dates for each return. ## The month-end steps 1. **Check the business license.** A business needs a Washington business license if its gross income is $12,000 a year or more, if it sells a product or provides a service that requires collecting sales tax, or if it owes taxes or fees to the Department of Revenue, among other triggers [1]. Done when each client either holds a license or has been checked against those triggers. 2. **Check the rate on every sale.** The state rate is 6.5%. The local rate varies by city and county, and a retailer collects the rate where the customer receives the goods or services. Sales tax collected is held in trust and must be remitted to the Department of Revenue [2]. Done when each taxable sale carries the state rate plus the local rate for its delivery location. 3. **Find the filing frequency.** The department sets it from estimated annual tax liability [3]. Done when the frequency on file matches the client's account. | # | Annual tax liability | Frequency [3] | |---|---|---| | 1 | $1,050 or less | Annual | | 2 | $1,051 to $4,800 | Quarterly | | 3 | $4,801 or more | Monthly | 4. **Work out the due dates.** Monthly returns are due the 25th of every month, so the June return is due July 25. Quarterly returns are due the end of the month after the quarter, so January to March is due April 30. Annual returns are due April 15. A due date on a weekend or legal holiday moves to the next business day [3]. In 2026 the monthly returns are due on the 25th from February 25 for January to January 25, 2027 for December [4]. Done when each return's due date is on the client's calendar. 5. **Know what late costs.** A late return carries a 9% penalty from the day after the due date, 19% from about a month later and 29% from about two months later. For the January 2026 return, due February 25, the 9% penalty begins February 26, the 19% penalty April 1 and the 29% penalty May 1 [4]. The department can waive late return penalties in some circumstances [5]. Done when each return went in by its due date, or the late ones are flagged for the client. 6. **Tie the liability.** Done when the sales tax payable account is at zero after the period's payment, or equals the tax not yet due. ## Sources 1. Washington Department of Revenue, Apply for a business license, read 2026-10-24: a license is needed if you sell a product or provide a service that requires collecting sales tax, if gross income is $12,000 per year or more, or if the business must pay taxes or fees to the Department of Revenue, among other triggers. 2. Washington Department of Revenue, Retail sales tax, read 2026-10-24: state rate 6.5%; local rate varies by city and county; retailers collect the rate based on where the customer receives the goods or services; sales tax collected is held in trust and remitted to the Department of Revenue. 3. Washington Department of Revenue, Filing frequencies and due dates, read 2026-10-24: frequency by annual tax liability ($1,050 or less annual, $1,051 to $4,800 quarterly, $4,801 or more monthly); monthly returns due the 25th, quarterly the end of the month after the quarter, annual April 15; weekend or holiday moves to the next business day. 4. Washington Department of Revenue, 2026 excise tax return due dates, read 2026-10-24: monthly due dates from February 25, 2026 to January 25, 2027, with the dates the 9%, 19% and 29% penalties begin for each return. 5. Washington Department of Revenue, Late filing, read 2026-10-24: the department can waive late return penalties under certain circumstances. --- Published 2026-10-24. Web page: https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/sales-tax/washington Part of [Month-end close: sales tax by jurisdiction](https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/sales-tax).